Nowadays, everyone does not buy property, some opt for rental properties. Simply take a building or any space on rent and pay the rent and it works smoothly. The rental value should be fair as it is a consideration paid under the lease for the right to occupy or return that is given to lesser. Rates are determined based on the locality where you are going to lease the property and compare with various properties and calculate the price per square feet and adjust rental prices for amenities. This helps to determine the proper cost of the properties for sale. Seasonality plays a major role in the prices of rent changing.
Peak Seasons
The rental prices have a huge impact on seasons. This is because during these seasons the trend of people who search for apartments and properties increases. The search for properties starts going up from December and it steadily grows until July. However, people start moving in from March till August. This is not fixed as everything would probably change concerning the conditions of an economy.
Lead Quality
We have to measure lead quality on a monthly basis and sometimes property prices would probably see a decline in lead quality in certain months. All we can say is seasonality impacts a lot on the rental market as it directly impacts the decision-making of managers and professionals. The main point in these factors is sometimes it peaks up and then declines according to the economy. It always follows different trends. When we talk about renters they start the search at the beginning of the year and then probably select the perfect one. No doubt they took time to launch their move but ultimately they want to profit out of it.
Renting Process
Now let’s talk about the whole process, firstly renters start to search for property either by property management software or by other sources and then they start contacting various property owners, after which they finally make a decision. For example, if someone starts their search in July, they would make the move in the next 30 days. This season is a peak season. If taken conversely, if someone starts planning in January and then takes around 90 days approximately to move, which means they took a long time to make a decision. So in nutshell, we can say that for some renters the best time is December or January and it can be because sometimes the property owners’ charges minimum prices in these months. When we talk about seasonality, prices tend to be on a rise in the summer season and this means more options are available for them to choose from. Renters looking for summer should start looking early to capitalize on prime openings and allow flexible move time to snag prime apartments.
Demand and supply
When we talk about prices, the simple rules that follow are demand and supply measures. As you may already know, rent prices increase mostly during summers, therefore demand increases mainly in summers and then starts declining in winters and then demand tempers.
Climate impact on rental prices
Sometime variability of climate should also be taken into consideration as this tells more about the trend. Not everyone is comfortable moving in during the winter season as they find moving in snow or rain quite difficult. It’s easier to move in the summers and this jump sometimes occurs in March, which is springtime so at that time prices remain lower. Due to the demand, the prices would hike in the autumn season and then gradually we see a decline by winter.
Pattern followed by searchers
If we talk about the searchers they have complete knowledge about the seasonality factors. Some people begin their search in December and January. In the winter season they are idle and then their search gradually increases in July which is the peak season and then declines again in winter. Once their research for rented property is complete, the whole application process follows in August. Some people start searching only a month before, then they would start in their process in August or so in July.
When a property has an idle unit, they have to follow market factors before settling the rental prices whether we talk in general or in nutshell. The price of the property in winter is low and it goes higher in summer and moderates in-between months. And the biggest factor that affects rental prices is supply and demand as when in any area the demand is more the prices would ultimately hike up in that area. Revamps and renovations also hike up the price of a property.
Seasonality impact on rental prices
Seasonality factors in the rental market impact a lot, actually they impact every part of the rental market and they also affect the decisions of renters and managers. The seasonality factors play a vital role for both managers and renters as ultimately, they have to give an advantage to both. When they search smartly by taking the proper time they would probably outshine. For renters, if they move in the offseason it will give them good deals and if they move in peak season they get the best options. So they can work according to what they need – good options or good deals. Lastly, it all depends upon the searching capability and knowledge.
