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. Knowing which time of the year is important to avoid any unnecessary delays, and furthermore, if your tenancy agreement is due to expire, when should you start advertising for another tenant?
October – March
Without question, the best time to advertise your rental property is within these month with the most optimal months being December – January (avoiding the christmas break). The rental market experiences a significant increase in demand during these months, which is great news for an investor. This optimal time is generally a time of change for many people, either starting a new job, new schooling, university or just seeking a lifestyle change to the coast.
June – August – over supplied & under demand
If you know your lease expires soon, and your tenant doesn’t want to renew, its important to get the actual timing of your advertising 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 couple of weeks, long before the property is vacant (and also the challenge of the tenant allowing you to show people through the property itself).
However, advertising it too late means your tenants move out long before you’ve received enough interest to replace them with the ‘right’ tenant which, of course, can become extremely costly as an investment property owner. This time of year can see higher amount of properties become available in the South West and not enough quality tenants to fill – known as over supplied and under demand.
Its a fine line, but the magical time frame is generally between four to five weeks. This leaves ample time for you and your new tenant to find each other, give notice to their landlord if required, and for your vacating tenant to move out.
Its not impossible to find suitable tenants at any time of the year. However, you should consider what’s in the long-term best interest of your investment. There is a misconception that lease agreements should only be a six or twelve month duration but this is actually not law. There have been plenty of leases I have constructed to be 13-14 months to avoid any tenancy agreement falling in the heart of the christmas break time when everyone is on holidays as this can be a huge (and expensive) headache; also 18 month agreements to bring an investors lease expiry date back to the peak time of the year just to name a few.
The time of the 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 scenario, but a strategic approach can minimise the stress, costs and risks to your investment.
If you would like to know more about this feel free to give Shannon, our Business Development Manager, a call on 0413 050 606, to structure a plan for you.