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How to Use the Seasonality of Rental Real Estate to Your Advantage

Model Houses Lined in an Incline with an Upward ArrowAn advantage of investing in Batesville single-family rental homes is the predictability of what will happen in the market, and when. Like other things in life, renting also has seasonal patterns each year. These patterns are known as “seasonality” and can help property owners and landlords anticipate and prepare for tenant turnovers. Understanding seasonality and how it could help you optimize your time and budget is critical for owning lucrative rental homes.

Searching Season vs. Moving Season

The first thing you should know about seasonality is that both searching and moving have different peak seasons throughout the year. Highs and lows in renter activity are predictable even as rental markets vary. The early part of the year is the searching season, peaking at March through July, when most people look for a new rental home.

The Heat of Summer

On the other hand, others want to take advantage of the warmer summer months so most renters prefer to move between May to September, making this the peak season for moving in or out. Renters still move for various reasons and at different times of the year. But the summer months tend to be the most convenient, and most renters do not want to move in cold or snowy weather. This is why most rental property owners are very busy during the summer.

The Cool of Winter

The winter month, in comparison, are the slower months in the rental market. This is because of weather and renter preferences. Not a lot of people enjoy moving during the winter holiday season, and most renters will prefer to stay where they are.

Using Seasonality to Your Advantage

While there are seasonality trends in the real estate market on a national level, you should also get to know the patterns for your local market. Once you understand these patterns, you can benefit from them in your annual planning. Any successful landlord-tenant relationship needs regular communication. But during peak searching season, it is wise to listen for hints about your tenant’s intentions for the coming year. This is especially true if their lease is up for renewal.

Let us say that you predict your tenant will move out. In that case, you can then start preparing for the turnover ahead of time by assessing the property condition, preparing marketing materials, and scheduling property maintenance.

Understanding seasonality can help you plan out your year. Most Batesville property managers complete administrative tasks, take personal time away, or check on other aspects of the business during the winter season, knowing that renters tend to move in or out during the summer. This way it becomes easier to accommodate the busy moving season when it arrives.

Of course, one of the best ways to unload a landlord of what can become an overwhelming list of tasks is to hire a good property management company to handle the day-to-day tasks. Real Property Management Delta can help with almost every aspect of rental property ownership, all year round. This can free up your time to focus on your investing business. Contact us today to learn more about all the services we offer.

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