When we’re talking about the rental cycles in Virginia, we have to consider what the word “cycle” means. It’s a series of events repeated in the same order; or, the amount of time taken to complete a single circle of events. A rental season cycle is comparing the rental market to the seasons.
Property Management Norfolk: Seasonal Rental Cycle
As an owner, you must understand the rental season because there are different periods of time where you have high volumes and low volumes of tenants looking for property. During high demand periods, the owners have positive effects. You can rent your property quickly, probably get more for your unit, and have the upper hand in negotiating any rent concessions. During periods of low demand, you have negative effects. It may take longer to rent your property, you may need to come down on the rental price, and you may have to offer an incentive to get someone to rent your property.
Seventy-four percent of all of our leasing is done during the summer months of June, July, and August. When we are looking at the fall or spring seasons, we have some push but nothing like the summer. The one thing to remember about November and December is that people are buying Christmas gifts, and in January and February, people are paying those bills. By the middle of February, they are doing their tax returns and by March 1, you have people with their tax returns in their hand, and they’re able to think about putting down a security deposit and finding a new place to live. It’s very important to remember the security deposit and the cycle when you’re listing your property for rent.
Property Management Norfolk: Monthly Rental Cycle
Along with the rental season cycle, there’s also a monthly cycle you need to be aware of as an owner. From the first of the month to the end of the month, we need to know when the best time is to rent your property and when you can get the best bang for your buck. Ninety percent of all of our leasing is done from the 16th of the month to the end of the month.
Many owners want to list the property on the first of the month. If you list it on the first of any month, you have missed the people renting for that month. List it 15 days before the end of the month if you want to attract people looking to move in that month. Lots of owners have a hard time understanding that. In the first week of any month, people are just looking. By the second week of the month, they’re getting more serious. By the third week, they are thinking it’s time to rent a new place, clean out the old apartment, and be all set to move in early in the following month. This is why there is so much leasing around the 15th of the month.
Take a look at all the cycles. As an owner, you want to rent during an optimal season and at an optimal time of the month. If you remember these cycles, you will get your property rented for the highest rate possible, and you’ll generate income faster by avoiding longer vacancies.