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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 ArrowA great thing about investing in Montrose single-family rental homes is that it is very easy to predict what will happen in the market, and when. Like most things in life, renting follows seasonal patterns every year. These patterns are known as “seasonality” and can help property owners and landlords anticipate and prepare for tenant turnovers. Understanding seasonality can help you optimize your time and budget, keeping your rental home investment lucrative.

Searching Season vs. Moving Season

Seasonality means that searching and moving have their respective peak seasons at different times of the year. Even as rental markets vary, the fluctuations in renter activity are vastly predictable. The season for searching for a new rental home usually begins in the early part of the year, with March through July typically having the most activity.

The Heat of Summer

Most renters prefer to move during the summer to take advantage of the warm weather, making May to September peak season for moving in or out. Renters still move for various reasons and at different times of the year. But, typically, most major life events coincide with the summer months, and most renters also avoid moving in cold or snowy weather. This is why summer is one of the busiest times of the year for rental property owners.

The Cool of Winter

In comparison, the rental market slows down a bit in the cooler winter months. This is mainly due to weather and renter preferences. Renters rarely want to move during the winter holiday season, preferring to stay where they are.

Using Seasonality to Your Advantage

It is important to know the seasonality patterns of your local market, just in case, it varies a bit with the national real estate market trend. This information can be very helpful in your annual planning. Regular communication is very important in any successful landlord-tenant relationship. 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.

Suppose you suspect that your tenant might 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.

Your understanding of seasonality can also help you plan your schedule. Since most renters tend to move in or out during the summer, most Montrose property managers complete their administrative tasks, take personal time away, or check on other business matters during the winter season. By scheduling tasks this way, you can better accommodate the busy moving season when it arrives each year.

Of course, hiring a good property management company is very helpful for any landlord managing a rental home business. Real Property Management Now 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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