An advantage of investing in Cleveland single-family rental homes is the predictability of what will happen in the market, and when. Renting follows 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 and how it could help you optimize your time and budget is critical for owning lucrative rental homes.
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 early part of the year is the searching season, peaking at March through July, when most people look for a new rental home.
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. 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 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 mainly due to weather and renter preferences. Most renters prefer to stay where they are rather than move during the winter holiday season.
Using Seasonality to Your Advantage
While seasonality patterns do affect the real estate market on a national level, it is vital that you know your local market patterns as well. This will help you in your annual planning. Regular communication is a trademark of any good 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.
Let us say that your tenant is likely to 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 Cleveland 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 quality property management company can help any landlord handle major activities as well as day-to-day tasks. Real Property Management Your Home 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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