As an investor, one of the biggest challenges is working out when to advertise your property for rent. There are a number of factors to consider, and the process from advertising to moving in can sometimes be lengthy. So to avoid unnecessary delays it is important to know which time of the year is optimal for obtaining tenancy. And furthermore, if your lease agreement is due to expire, when should you start advertising for another tenant? Don’t stress, it’s not as complicated as you may think. Here are the two best seasons in the rental market for advertising a property for rent.
January – February
Without question, the most optimal time to advertise your rental property is early in the year, between January and February. The rental market experiences a significant increase in demand during these months, which is great news for an investor! The beginning of the year is generally a time of change for many people, either starting a new job, new school or uni, or just seeking a lifestyle change. Also, most lease agreements expire early in the year. This means tenants are more likely to seek a new property for rent at the time their contract is up to avoid any financial obligations involved with breaking lease.
June – August
The second busiest surge in tenancy demands happens between June and August. Around this time uni starts mid-year intakes, and six-month tenancy leases expire, making this another peak period for advertising. It’s a simple supply and demand situation. These two peak periods mean investors have better quality applicants, more potential to achieve optimal rent, and both investors and tenants can be more selective.
To narrow in a little further, if you know your lease expires soon, and your tenant doesn’t want to renew, it’s important to get the actual timing of your ad spot on. Advertising your property for rent too soon may seem tempting, but it could have reverse effects. The risk is in receiving the bulk of enquiries in the first 2 weeks, long before the premises is vacant. Conversely, advertising too late means your tenants move out long before you’ve received enough interest to replace them. Which of course can become extremely costly as an investment property owner. It’s a fine line, but the magic time frame is generally between five to six weeks. This leaves ample time for you and your new tenant to find each other, give notice to their landlord, and for your tenant to move out.
It’s not impossible to find suitable tenants at any time of the year. However, you should consider what’s in the long-term best interests of your investment. There’s a misconception that lease agreements should only be a six or twelve-month duration. But there’s no law in Queensland that states your agreement must be within those time frames. In Queensland, 2014, the average tenancy duration was 13.1 months. This means that if tenants sign a twelve-month lease, then it’s wise to consider aligning your tenancy to expire in a peak period. Trying to find tenants around holiday times can be a huge (and expensive) headache. The time of year that your property is vacant or due for renewal can significantly impact the demand for your property, and therefore your return on investment. You can’t always avoid a vacant property, but a strategic approach can minimise stress, costs and risks to your investment.
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