One good thing about investing in Baltimore City single-family rental homes is the predictability of what will happen in the market and when. As with other aspects of life, renting also has its 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 can help you optimize your time and budget, keeping your rental home investment lucrative.
Searching Season vs. Moving Season
Seasonality shows that there are peak seasons for both searching and moving at different times of the year. Highs and lows in renter activity are predictable even as rental markets vary. 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
Renters also prefer to move during the warm summer months, that is why the peak season for moving in or out is in May to September. This does not mean, though, that renters do not move all year round. They still do and do so for various reasons at all times of the year. But the summer months generally coincide with most of life’s big events, and most renters prefer not moving in cold or snowy weather. This is why most rental property owners are very busy during the summer.
The Cool of Winter
On the other hand, the winter months are the slow ones in the rental market. This is mostly due to weather and renter preferences. Very few renters would like to move during the winter holiday season.
Using Seasonality to Your Advantage
While seasonality affects the real estate market on a national level, it is still important that you observe the patterns in your local market. This will help you in your annual planning. Regular communication is very important in any successful landlord-tenant relationship. But, during peak searching season, you could keep an eye out for hints about your tenant’s intent to stay or leave, especially 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. Since the majority of renters move in or out during the summer, most Baltimore City property managers use the winter season to work on administrative tasks, enjoy personal time, or see other important matters of your business. This way, you can accommodate the busy moving season better.
Of course, hiring a good property management company is very helpful for any landlord managing a rental home business. Real Property Management Prime 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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