How easy is it to Rent ?? - Posted by Frank Chin
Posted by Frank Chin on March 14, 2001 at 08:00:06:
I own a number of rental properties - so I’ll give it a shot.
The key consideration is how strong is the rental market? We gauge this by going to local realtors posing as a potential renters describing a place we want. We describe it exactly like the place we’re thinking of buying. If we’re told that there’s hardly anything available, and they’ll put you on a waiting list, then its good news. If they have dozens available to show you that day, its not good news. In that case, look at a few. We also ask for the rental price while we’re at it.
We also go the local realtors and describe a place we have and if they have any renters waiting. We ask for the rental price. We compare this the one above where we pose as renter to see if we get the same reaction. Sometimes my wife pose as the renter and I pose as the owner.
Also check the local papers and visit some rentals. See what the deal is. Ask when the last tenant left and how long its been on the market. If they been looking for tenants for months, then its not good news. There’s your competition.
Another consideration is what renters are looking for in the area.
1- If its 3 plus BR’s then its a renter with kids. They want to know about the school system.
2- If its 2BR then its a professional couple or a older retired couple. They don’t like to do yardwork etc. So are you close enough to handle it?
3- For 1 BR units, prepare for a higher turnover rate. Do you want to look for tenants every year (or after 3 months)?
4- Accessabilty to public transaportation is another frequent question. Some renters try to get by with one car (to save for a house) so they want to know if they can walk to a bus stop. This is a key consideration in urban areas.
After that, you’ll have to figure out if the rent can cover the mortgage, and can you do a no money down deal etc. But you have to determine if you can rent this place out to begin with.