For all Investors/Landlords, you want to maximise your return on investment (ROI). One of the critical factors that help boost this is the vacancy of your property.Therefore being mindful when your property is coming up for renewal or when you decide to advertise your property will play an important role on the demand for your property.
So when is it a good time to advertise and what months should I be more mindful of?
January – February
This is the busiest season in the rental market and the time of year that people are most on the move. Their reasons typically include transferring for work, settling the kids into a new school, students starting university or simply renters who want a change in location or lifestyle.
During these first months of the year are when the majority of leases are due to expire. Therefore renters are more likely to make a change due to no additional financial obligations that a break-lease might incur at other times of the year, when they are still bound by a tenancy agreement.
June – August
This is the another busy period for the Sydney rental market. New university intakes are occurring and six-month tenancy agreements are due for expiry, so this is another optimal period to maximise demand for your rental property.
Christmas and New Years are a time for celebration and family for obvious reasons and whilst people still move during this period, there tend to be more tenants going away on vacation. Whilst not the end of the world it is fair to say it is least favourable time to lease due to potential higher vacancy periods during the silly season.
Important Points to Remember:
While it is not impossible to find a suitable tenant at any time of the year, these two peak periods provide investors with more: more selection of suitable applications, more demand, more quality applications and more potential for the optimal rent to be achieved.
A common misconception about tenancy agreements is they should be either six months or 12 months. This is not a legal requirement in NSW and if you are an investor who has a tenancy agreement due to expire in any other time of the year, it is wise to consider aligning your tenancy to end in any of the peak seasons.
Some tenants might find it odd that a lease being offered to them is not for a typical six- or 12-month period, so your property manager should communicate clearly the benefits to the tenant of ending a lease in a peak rental season.