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Tailoring Leases to Annual Rental Market Cycles
In most parts of the country the demand for residential rental property including rental houses, condos for rent, duplexes, townhouses/town homes, and small apartment rentals follows an annual cycle. Most of the times this pattern dictates a significant variation of the level of demand by renters for available home rentals and can potentially leave many home-owners, landlords, and property managers with lengthy vacancies.
Potential tenants looking for houses for rent and other types of rental homes including apartments for rent, duplexes for rent, condos for rent, or townhouses for rent, frequently begin their search online months in advance of their lease expiration date. This article is intended to help you better understand these cycles so you can choose the best home rental advertising plan on RentalHouses.com for your available homes for rent and those house rentals which may be coming vacant in the near future.
In many markets, the period with the strongest demand by renters looking for homes for rent is during the late spring and early to mid summer months. High demand for available rental homes is commonly known to follow the out of school periods of the year. With many school districts now on alternative year round schedules and many markets tied to in-town college school semesters, more traditional rental home cycle patterns may not apply in many communities.
Many southern coastal markets cater to "snowbirds", those retirees heading south for a warmer winter climate. These home rental markets tend to be counter cyclical to most other areas of the country.
When offering a house for rent or an apartment for rent, a landlord should always take into consideration his or her local home rental market cycle. Houses for rent during the slow demand time of the year may sometimes take two to three times longer to rent than during the peak rental season. With this knowledge in mind, home-owners and landlords should tailor their rental home leases so that they expire at more favorable times of the year for re-renting.
For example, rather than offering your house for rent as a traditional one year lease at all times of the year, after the peak home rental periods pass, you may want to offer leases for slightly less than a year or extend them out to the beginning of the next peak period, which may be eighteen to twenty months hence. Because the selection of single-family rental houses and other types of rental homes tends to be greater at the peak periods, many renters prefer to be back in the market during the rental cycle peak. Therefore, do not be squeamish about quoting lease periods variant from one year leases for your homes for rent during these slow periods.
In most rental home markets, September is the beginning of the slower demand periods. RentalHouses.com offers single home rental advertising plans which help with these slower times of the year should you find yourself with a vacancy out-of-cycle. While a 30-day rental home listing runs only $39.00, an even greater value is the 60-day home rental ad which is priced at $59.00. During the out-of-cycle periods the best value is realized with the 90-day $69.00 home rental ad. While none of us want a 90-day vacancy, the $69.00 home rental ad has proven to be a big hit amongst landlords and property managers during the weak and slower home rental periods and markets.
Even though annual rental home cycles have been a fact of life for landlords and property managers for many years, planning vacancies with tailor made leases can minimize their impact. For a variety of reasons even with rental leases patterned with the rental market cycle in mind, you may still find that you have homes for rent or out of season leases that occasionally occur. When they do, consider utilizing the benefits of the 60-day and 90-day house rental plans offered by RentalHouses.com. They are an incredible value resulting in a huge amount of exposure and assistance in minimizing the financial impact of having available houses for rent during the slow periods in the rental home markets.
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