Rental cycle seasons

Many astute investors understand that the property market has cycles that move up and down based on a number of external economic drivers such as loan rates, property yields and market saturation.

Interestingly, the same cyclical activity is not commonly associated with property management and the rental market.

Whether you are a landlord or tenant, it is worth understanding how the seasons can influence rental market demand and your flexibility in negotiating tenancy terms.

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

In nice weather, we’re 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. As a result, there are more people looking to rent which can increase the rent achievable in comparison to other seasons of the year.

Autumn and winter

As the days shorten and weather gets colder, rental enquiries tend to cool off. Most people are reluctant to move, which means vacancy rates and tenants start to negotiate on the weekly rent. It can also be more difficult to make a property look visually appealing in colder months.

Spring

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.

If you’re considering purchasing an investment property, Crowe Horwath’s lending and finance specialists can assist you in negotiating the most competitive rate on your behalf. We can also help make sure your investment fits within your overall wealth strategy and is structured tax effectively.