Market Research - Furnished Finder

[Daniel Hajduga]

Hi BP Community! 

I'm going to dive right in - I am doing my research and due diligence on my next investment. I plan on purchasing a multifamily in Essex County here in NJ where I plan to house hack and rent out the rest as an MTR. 

Here is the question - how can I better determine vacancy rates and demand? When looking at listings on FF, most do not seem to be booked far out if at all. The ones that are booked are mostly booked via Airbnb for a week or so. When searching, I leave dates blank so I can see as many available units in the area as possible.

My suspicion is either my approach is flawed, or that the demand is not very high in this market despite the numerous hospitals nearby. 

I have also reached out to some hosts in the area as suggested in "30 Day Stay" to see if they would be willing to share any insight. If I hear back from them, I will update you guys.

Any suggestions or feedback is greatly appreciated and please feel free to ask questions. Always happy to share insight and connect with fellow BP members!

[Bonnie Low]

MTRs represent an evolving space with a lot of location-specific variables. It basically boomed during the pandemic because travel nurse per diems and hiring contracts both exploded and we saw this nationwide surge of digital nomads. It's leveling off somewhat on both of those fronts but I also see increasing demand in general for furnished rentals at people are more willing and able to be nomadic or are recognizing furnished rentals as an alternative to hotels and unfurnished rentals which used to be far and away the only options. Sites like FF established themselves by catering to travel nurses, but their user base has really expanded. We get inquiries from people traveling for school, religious sabbaticals, medical treatments, to take care of relatives, summer employment (park service and forest service), temp. construction workers, people displaced by natural disasters, even beekeepers! We also get people relocating to the area that need time to find a permanent residence. Knowing that FF's user interface is wonky and not very sophisticated, I don't know that I'd entirely trust their data if I was investing in a market I didn't already know. But ask yourself if any of the above situations apply to your area and chances are you're in a good market. This is by no means an exhaustive list - it's just a suggestion to get you thinking. I also agree that if you can make the numbers work as an LTR, you have the ability to pivot if it's not working out. Also, you'll find that a LOT - probably the majority right now - of listings on FF are one or both of the following: private room in a shared home or decorated like your grandma's house. And in this case grandma wasn't a style icon. The listings you see that are not getting booked or are the last to get booked are usually one or both of those. People do rent shared spaces, but the vast majority prefer their own space. If you want to keep your place booked, pay attention to detail. It really doesn't take much to set your listing apart at least based on where MTRs are in their evolution. Price competitively. Decorate nicely. Have great photos. And if you allow pets, you will likely have demand. Also get on some FB sites that cater to travel professionals to get an idea what interest there may be in your area.