“This is insane, feels like a job interview.”
I thought this week as I found myself being interviewed for the “priviledge” of renting an apartment in Quito.
Next to me was another guy who was being jointly interviewed for the same apartment.
“So why should I choose you?” The owner of the apartment asked.
As I sat up in my chair I replyed… “Well, I’m clean, quiet and pay on time.”
Then she asked the other guy the same question and said OK I’ll call you tonight if I choose you.
As we left other folks interested in the apartment were entering.
She never called back.
I didn’t get it.
Now, I’ve rented in hot rental markets like San Diego, Honolulu, Madrid and China, but I’ve never seen a place where its so competitive to find a decent rental at a decent price.
The demand is huge. Certainly one of the best opportunity areas to own a rental in Ecuador.
It’s definitely not like the vacant, abandoned buildings in many areas of my home city, Cleveland, Ohio.
Quito is at capacity.
But I’m not surprised.
The planes to Ecuador are packed.
People are coming in droves.
The price is right.
Like one friend told me Brazil was like 10 years ago.
Now, the planes to Brazil are practically empty.
It’s too expensive due to the exchange rate. Nice country, but they’ve priced themselves out.
The sweet spot right now, or the rentals that get taken the quickest in Quito are the ones in the north of the city anywhere from the Mariscal/Floresta/Catolica area of Quito up until about the area of the “Y” and the Jipijapa area.
The most in-demand area is the very centric Carolina Park area near the biggest malls in Quito like Quicentro.
That’s where most locals and foreigners alike want to be.
The long-term rental apartments that go the fastest are the 2 bedroom ones in the above area in the $250-400 a month range.
Literally, for decent rentals in the above-mentioned area in this price range if you publish an ad in the local paper by the afternoon you’ve found a long-term tenant.
Really its the quick.
And the wait is only a bit longer if your rental is higher-priced.
Now, you could buy in this area starting around $35-45k and if renting long-term for the above prices would generate a 10% annual return not to mention the capital gains the market is experiencing.
Annual property taxes for an apartment in Quito of this value usually run less than $100. And condo fees are usually less than $40 a month, and the tenant usually pays that.
Nicer and newer 1 and 2 bedroom apartments in the same area can go for around $60k and you could command a bit more rent.
Quito rentals are hot indeed.
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