Determining Demand in your area using Furnished Finder

[Andrew Bosco]

Hey all, 

I see quite a few posts involving determining if an area is good for MTR be it the demand/supply/pricing. So, I want to add some value here. I'll use my current home city to show you the process. 

1. Here's my slide deck that I share with everyone for all things MTR. It's free, no pay wall etc. If you want to donate via venmo, then be my guest. https://docs.google.com/presentation/d/1qCD_XIgmg-2BGGzsDbWq...

2. The FIRST Thing I do is a quick sniff test on Furnished Finder for a broad stroke guess: 

Right away I can see a few big points: 

a. Manchester is the #3 area in the state for travel professionals and high up on cities in the country. So I know the supply is there. It makes sense as a local because of the density of medical centers. I can also infer a few other items in later points, such as vacation destination, no sales tax, and a commuter state. 

b. By the room rent is $1000-$1500. Whole place (be it studio/1 bed/2 bed etc.) is at minimum going to be $2K since 76% of housing as a whole place is above the 2K mark. 

c. There's a lot of demand from travel professionals which i can see requests vs. views. 

3. So point #2 looks good. Now to dive deeper using furnished finder. I am going to search for housing as a end user. https://www.furnishedfinder.com/housing/Manchester/New-Hamps...

This gives a really good high level overview of what I can see in terms of actual listings. It's INCREDIBLY important to get granular. I looked at a wide swath here. Now, what if I make pets welcome..

With one click - I just eliminated half the competition. I can even charge a $45 pet fee and add it to the cleaning bill. The key here is to play around with your metrics and area. Show how you're different. I will physically scan other properties similar to mine ( 2 bed/1bath) and I will compare my pricing to someone else for cross comparison. 

Also, this chart shows me there is a ton available to travelers, but they aren't getting rented: WHY? I'm unsure. It could be bad pricing, terms, demand etc. If you comb through this a bit deeper - you'll find it's pricing for many. 

My sniff test as I get granular is that most of these units are Grade A units and charge A LOT of money for them. That tells me opportunity exists in the Grade B / Grade C. Think about it - travel professionals aren't a one size fits all. Maybe some want to save their money and live in ok apartments/homes. Just keep digging! 

Now, the process isn't done yet. I still go look on Rabbu/AIRDNA, Compare MTR rates vs. LTR rates by checking out HUD/Section 8, local news, I'll google local companies hiring etc. This is just one way to get granular. Of course, I make sure my MTR passes the LTR test first, which is that LTR rates must AT LEAST break even the monthly payment or ideally, make $200 per door in profit. If not, then you're setting yourself up for failure if you can't MTR in time.

This is not a one size fits all model, but to help others run their business!

[Elisa Michals]

Thanks for the detailed response. That is a lot. I currently have four doors in Northern CA region. I have no problems renting the studio or small one bedroom but the house is a bigger challenge. I work with house relocation specialists but it's a completely different skill set and 'grind'. My experience- you can get a lot more money through AirBnB but the process with Furnished Finders is much easier, more transparent and allows you to review potential guests more thoroughly. I like the mid-term space- love furnishing the spaces and making them unique but it's a lot of work.

[Ayanna McClintic]

Quote from @Andrew Bosco:

Hey all, 

I see quite a few posts involving determining if an area is good for MTR be it the demand/supply/pricing. So, I want to add some value here. I'll use my current home city to show you the process. 

1. Here's my slide deck that I share with everyone for all things MTR. It's free, no pay wall etc. If you want to donate via venmo, then be my guest. https://docs.google.com/presentation/d/1qCD_XIgmg-2BGGzsDbWq...

2. The FIRST Thing I do is a quick sniff test on Furnished Finder for a broad stroke guess: 

Right away I can see a few big points: 

a. Manchester is the #3 area in the state for travel professionals and high up on cities in the country. So I know the supply is there. It makes sense as a local because of the density of medical centers. I can also infer a few other items in later points, such as vacation destination, no sales tax, and a commuter state. 

b. By the room rent is $1000-$1500. Whole place (be it studio/1 bed/2 bed etc.) is at minimum going to be $2K since 76% of housing as a whole place is above the 2K mark. 

c. There's a lot of demand from travel professionals which i can see requests vs. views. 

3. So point #2 looks good. Now to dive deeper using furnished finder. I am going to search for housing as a end user. https://www.furnishedfinder.com/housing/Manchester/New-Hamps...

This gives a really good high level overview of what I can see in terms of actual listings. It's INCREDIBLY important to get granular. I looked at a wide swath here. Now, what if I make pets welcome..

With one click - I just eliminated half the competition. I can even charge a $45 pet fee and add it to the cleaning bill. The key here is to play around with your metrics and area. Show how you're different. I will physically scan other properties similar to mine ( 2 bed/1bath) and I will compare my pricing to someone else for cross comparison. 

Also, this chart shows me there is a ton available to travelers, but they aren't getting rented: WHY? I'm unsure. It could be bad pricing, terms, demand etc. If you comb through this a bit deeper - you'll find it's pricing for many. 

My sniff test as I get granular is that most of these units are Grade A units and charge A LOT of money for them. That tells me opportunity exists in the Grade B / Grade C. Think about it - travel professionals aren't a one size fits all. Maybe some want to save their money and live in ok apartments/homes. Just keep digging! 

Now, the process isn't done yet. I still go look on Rabbu/AIRDNA, Compare MTR rates vs. LTR rates by checking out HUD/Section 8, local news, I'll google local companies hiring etc. This is just one way to get granular. Of course, I make sure my MTR passes the LTR test first, which is that LTR rates must AT LEAST break even the monthly payment or ideally, make $200 per door in profit. If not, then you're setting yourself up for failure if you can't MTR in time.

This is not a one size fits all model, but to help others run their business!

[Ayanna McClintic]

Great post!

[Jamie Banks]

Another tool I find helpful is the Stipend Calculator https://www.furnishedfinder.com/Travel-Nurse-Stipend-calcula...

It's similar to the stats page but it breaks down key amenities at the property. It's a great way to determine how important certain offerings are in your market like accepting pets or having in unit washer and dryers. 

[Andrew Bosco]

Thanks all!

[Renee Seevers]

Andrew, 

Thanks for sharing your slide and all the great links/ resources within it.  I noticed in the scenarios you presented that the number of map searches and listing page views were dramatically different.  I checked a two locations and they both have numbers that are very close to each other.  What can be inferred from this narrow gap? 

[Andrew Bosco]

Quote from @Renee Seevers:

Andrew, 

Thanks for sharing your slide and all the great links/ resources within it.  I noticed in the scenarios you presented that the number of map searches and listing page views were dramatically different.  I checked a two locations and they both have numbers that are very close to each other.  What can be inferred from this narrow gap? 

 Great question! I believe the backend of the system merely looks at viewing of their database by users on the tenant end vs. the area. The dramatic difference includes demand for an area. So Roseburg has less searches and also less views of properties, because supply/demand maybe lower. Whereas Des Moines is a more populated area and is saturated - the amounts are much higher. Des Moines has more supply and a high demand.