What is rental season?
For anyone who works in the housing industry, we know that peak rental season comes every April through September. This is the time when renters, home owners and aspiring home owners decide to make the transition to their next home. It’s estimated that 80% of moves occur during this peak season, with the highest number of moves in June, July and August. When it comes to rental properties, 33% of renters move each year. With such a striking trend, how do you use this timeline to optimize your rental property?
Why rental season matters:
With so many people moving during the rental season, should you fear losing your renters, or jump into the fray to find your next great tenant? While some property managers may try to space out their lease terms so that not everyone is vacating at the same time, property managers who work in the best interest of their clients know that focusing turnover in this peak season is generally in the client’s best interest. This is a situation where competition is a landlord’s friend. With so many prospective tenants in the market, you will be able to demand the highest quality tenants, higher rents and mitigate vacancy loss.
Higher Quality Tenants & Higher Rents:
The market is flush with prospects looking for a new place to call home. This means you can ask for a slightly higher rent amount than you would in the off season. In addition to setting a higher standard for tenants, you can also set the rent slightly higher and still have a plethora of prospects who are willing to pay a bit more for their ideal home. Even in Seattle’s already hot market, we can push rents a little further during this peak period.
Less Vacancy Loss:
Vacancy loss is the term for lost rental income caused by having gaps during tenancy. Vacancy loss can quickly become significant to your return on your investment. As way of example, if your property stays vacant for a month, that means your annual rental income has decreased by 8.3%! This is why we strive to turn a property as quickly as possible to qualified tenants.
How to Optimize for Rental Season:
In summary, you want your property to come available for rent April through September. How do you ensure this happens? The simple answer is to encourage tenants to a lease that ends during peak rental season. The more detailed answer is that there are three factors that affect this: lease end date, renewal terms, and lease breaks. When you sign a lease with a tenant you want the lease to end during the peak time. For the reasons already outlined, it can be well worth it to sign a slightly shorter lease term in order to get into this cycle.
Of course, if any of this sounds complicated, let us take care of it for you. As your property managers, we always keep your best interest at heart. Our industry expertise will result in the best returns on your investment and provide you piece of mind.