UNDERSTANDING THE RENTAL CYCLE SEASONS

Many astute investors understand that the property market has cycles which can go up and down in sales, yet don’t associate this cycle with property management as well.

The rental market is often driven by supply, demand and the seasons of the year. Unlike the buying and selling cycles, rental patterns are much simpler to predict as there are often yearly trends that can align with the seasonal changes.

Summer (Late Dec-early Feb): When the sun is shining and the days are warm, we are inclined to consider significant life changes, such as relocating, children moving out of home, professionals being reassigned to new work areas and tertiary students house hunting before commencing their studies. There is increased market activity with more people looking and as a result, the rent achievable can increase in comparison to other seasons of the year.

Autumn & Winter (Mar - Aug): As the days shorten and weather gets colder, rental inquiries tend to cool off. Most people are reluctant (unless it is necessary) to move in colder months, which means the vacancy rates increase and tenants start to negotiate on their weekly rent. It can also be more difficult to make a property look appealing in the colder months.

Spring (Sep - Nov): This is traditionally considered the best season to sell, but not always the best time to rent. Tenants can be awaiting job transfers, children are busy finishing school and preparing for exams and people are reluctant to move before the busy Christmas and holiday period.

As your managing agent, we understand these rental trends. We can negotiate tenancy terms (i.e. 8 months instead of 6 months) and increase our tenant and property marketing around the quieter times of the year.