Understanding Rental Seasons
When Is Peak Rental Season?
I’ve leased somewhere between 500-600 homes over the course of 6 years in Tampa Bay. During the summer months, the rental market experiences its highest activity. This period is ideal for landlords to fill vacancies, often at higher rent prices compared to winter. Factors contributing to this trend include easier moving conditions, family relocation preferences (right before school starts), and the influx of college students and graduates. Barring 2021, the slowest leasing month in my experience has always been October. Somehow, November and December were always slightly busier.
Strategies
To capitalize on the peak season, it's important to prepare your properties in advance. This includes addressing repairs, ensuring cleanliness, and updating your rental listings to highlight property features 1. Having a solid tenant screening process is also essential to find reliable tenants .
Using online tools can simplify the rental process, from applications to lease signing and rent collection, making the experience smoother for both landlords and tenants. This will also encourage more applications because you’ll appear more professional.
Landlords listen to tenants. Tenants say they don’t care much about curb appeal, but let me tell you.. they actually do. Spend that 2k in front landscaping or getting the thorns out of the backyard. You may not rent it out for more, but 1-2 months quicker and that pays for itself.
Can you lease your property during the off-season? Of course. I’ve leased properties in 2 days during the off-season. Set the price right for the location and you’ll reduce vacancy immediately. Reducing from 2100 to 2000/mo and leasing fast will actually make you more money than your property sitting for 2 months.
Lease Terms
Aligning your lease terms with the peak season can be beneficial. If your lease ends in winter, consider adjusting it to a six or 18-month term to transition to a summer vacancy cycle. This approach can help maximize rental demand during the next tenant search. Additionally, tailoring lease start and end dates based on your property’s location and target demographic, such as near universities, can also be advantageous. Aim for March or April to give your property enough time to do repairs and relist. If your tenant doesn’t want to do more than 12 months, offer an incentive upfront.
History and Now
Historically, we’ve seen rents soften a tad bit and speed to lease slow to 30-40 days on market during the winter season. The middle seasons (Spring and Fall) are fairly similar neutral seasons. Things really start ramping up in April each year. Rents become a little firmer and quicker due to rising demand. We had a booming 2021-2022 where seasonality went completely out the window. Now in 2023, we have to be very mindful of how much and when we list rentals. Rents across Florida appeared to be softening and slowing down even during the summer months this year.. winter has only expanded upon that trend. Some rentals sitting over 60 days while pricing seems competitive.
Thanks for reading.. Understanding and planning for the rental seasons, especially the peak period, is a key strategy for real estate investors in Tampa. By preparing properties and adjusting lease terms, you can enhance your success during these high-demand months.
