The time of the year that a property is advertised for rent can make a considerable difference to the rental achieved and, therefore, on the Return On Investment (ROI) as well.
Vacancy in the “Peak Season”
The level of demand can have a large effect on both the rent achieved and the potential vacancy period. With any lease, the aim should be to have the expiry of any tenancy occurring at the peak times throughout the year.
Why is this? It is simply a matter of supply and demand.
As you can see on the graph below, there are two main peaks in demand throughout the calendar year. The first is in the months of January and February, and the second is in the months of June and July.
Rental Demand Index
January & February
This is the time of year that most people are on the move. Whether it be people being transferred for work, moving to a new area to be within a particular school catchment for the children, settling in for a new year at university or some other reason. This is the time that the greatest proportion of ‘tenants’ are moving from one home to another. This is also the time that ‘12 month leases’ from the previous year are up for renewal. Hence, if the owner, for example, is moving back into their property or the rental has increased significantly and the tenants have elected to move on or upgrade, these are all contributors to why this is the peak demand time of the year.
June/July & August
This is the second peak period of rental demand in any year and hence the second best time of the year to rent out a property. With a new university semester about to start, changes at work and the expiry of ‘6 month leases’ that commenced at the start of the year (January and February), this is also a good time to advertise a property for lease.
High demand equals higher rentals and a choice of tenants
Having a property for lease at these times of the year facilitates the best opportunity for the property to be rented for its highest rental and the highest number of applications to be received. An owner can afford to be more particular with their choice of tenants when a higher number of applications are received.
At Templeton Property, our aim is to have 100% of our leases coming off at either the end of January and early February or the end of July and early August. This enables the property under management to be placed for rent at the peak time of the market. Thereby achieving for our clients:
- The maximum rental return
- In the shortest amount of time
- With great tenants
Carefully considering the time of the year and taking into account the date of the expiry of a lease is just one of the things that the Brisbane property managers at Templeton Property undertake to optimise the return to our clients’ investment properties throughout Brisbane.
Would you like to learn more about our services? Need some investment property advice? Please don’t hesitate to call the Templeton Property office on (07) 3368 1988 to discuss how we can help you.