As with any other business cycle, property managers and owners experience the cycles of leasing. The need for rental properties can vary throughout the year even when all other factors (location, space, amenities,etc.) are ideal. So let’s jump right in and explore the cycles of leasing….
Different Rental Seasons
- Peak Rental Season – During peak rental season, there is a surplus of qualified tenants actively looking for a rental property. Generally, this is during the summer months (May through August).
- Trough Rental Season – Trough rental season brings you less qualified tenants looking for a rental property when there is an excess amount of properties available on the market.
- Slow Rental Season – Between October and December, property managers experience a difficult leasing period. There are several factors that contribute to this…
- Moving during the winter is not easy as temperatures drop and snow covers the ground in many regions of the United States.
- Prospective tenants with school aged children choose to move during the summer so that they do not mess with their child’s school schedule.
- College students look to sign a lease at the beginning of their semester.
- Other young tenants will finish school in late Spring and move into a rental soon after.
Finding Tenants During the Peak Rental Season
As a landlord or property manager, it is important that accumulating tenants is easy for all parties involved. The process begins with listing your rental, then finding qualified tenants, and getting them to sign a lease. Getting tenants during the peak rental season comes with many benefits, those include…
- Gain Interest from More Applicable Tenants – Listing your property during the peak rental season will help you gain the interest of more applicable tenants which, in turn, helps you fill your vacant rental properties. You can connect with more prospective tenants by listing your properties when the demand is high. By listing when there is an increase in demand, you reduce the chances of having empty rental properties. At Real Property Management, we work hard to keep our owner’s properties filled.
- Allows You to Be More Selective – Since you were able to connect with more potential tenants, you can be more selective. Having this option will help you ensure that you are renting to tenants who will pay their rent on time and maintain your property. At Real Property Management, we can help you find top-notch tenants by providing you with the tools to screen your tenants, such as…
- How to Review Rental Applications
- Verifying Tenant Income
- How to Get In Touch with Previous Landlords
- Assessing Tenant Credit Reports and Background Checks
- Approving or Denying Potential Tenants
- How to Avoid Property Vacancies
- How to Be Proactive During Trough Rental Season – It is easy to become panicked during trough season, but it is important that you do not allow this fear to make you desperate. A few steps you can take to be proactive during slow rental periods are…
- Make your property stand above the rest, in both the way that it looks and how you have it priced compared to similar competitors in your area.
- Provide applicable tenants with a leasing incentive which might motivate them to move.
- Continue to be thorough with your tenant screening but consider developing a budget that will allow to reduce the rent.
- Understand the cycles of leasing when you prepare your budget for your investment properties. Even when you offer a fair rate, it is important to recognize that trough season is typically a financial stressful time of the year for prospective tenants and property owners, alike.
Real Property Management Can Help Make Trough Season Easier
- Adjusting Your Lease Terms – The best way that you can maximize the benefits that come with a successful peak season, you must be sure that you have vacancies at the beginning of summer. One suggestion we have is to adjust your leasing terms– by offering an incentive 18 month lease or even a 6 month lease, you can help bring in tenants during the winter months while setting yourself up for a great peak season.
- Increasing Your Marketing Efforts – During the trough season, it is important to ramp up your marketing efforts. How can you do so?
- List your property on Craigslist and social media platforms 2 or 3 times per week.
- Waive your application fee
- Have a professional take photos of your listings prior to putting them out there for the world to see.
- Use appropriate signage
- List on popular rental websites like Zillow, Truila, and more.
- Invest in sponsored ads on social media platforms to get more clicks
- Share in local Facebook groups
- Refresh your leads frequently so that you can keep your listing at the top.
- Send out emails weekly through Mail Chimps and Go Section 8.
- Implement the use of brochure boxes on properties that may need more boosting.
- Develop a good relationship with realtors and tenant placement agencies like Real Property Management.
- Have an open house, in person or virtual.
Amenities Attract Quality Tenants
In today’s market, it is important that every rental offers tenants the following:
- Black or Stainless Appliances
- Washer and Dryer; Washer and Dryer Hookups at very least
- Window Treatments
- Central HVAC
- Professional Maintenance Services that are on-call
Location, Location, Location
When it comes to property, location is key. Does your rental property offer easy access to roadways or public transportation? How close are supermarkets and grocery stores? Is the commute good for your targeted tenant group? Is it located in a safe community? How are the districted schools? These questions you can expect to answer as your prospective tenants find the right place to call home. While some boxes can go without being checked, the more you have to offer, the more likely you will be able to find solid tenants. Being located in proximity to a university or college, you may discover some advantages for leasing when the slow season sets in. Being able to rent to students brings in a whole new market. One thing you should make note of is the school’s schedule so that you can prepare yourself for a surplus of interest.
Timing is Everything
Tenants are often ready to move right in and you want that so that you can avoid vacancy. However, waiting until you’re able to thoroughly screen your applicants and for the best timing is everything. It takes 30 days to find and screen tenants during peak season and 60-90 days during the slow periods. You will want to have your tenants sign a lease 30 days before they move in. It is important that you make the most out of your peak season as this is the time where you will see more interested applicants which allows you to charge more and gives you the ability to be selective so that you get a quality tenant. When leasing to tenants in the trough season, it is ideal to have their lease end during the summer. This allows you to have vacancies during the peak season. Consider 6 or 18 month leases when renting in the slow season.
There is a lot that goes into renting/leasing properties. That is why it is important you work with a local property manager, like Real Property Management, who understands the community surrounding your property. You will not regret it.
Contact us (866-500-6200) for more information today!
About Real Property Management Midwest
We are local property management experts serving Cincinnati, Dayton, Columbus, & Louisville. We manage Single-Family Homes, Apartment Buildings, and Condos. With years of experience, Real Property Management is Cincinnati, Dayton, Columbus, Louisville and Northern Kentucky’s #1 Property Management and Leasing Company.