When is The Best Time To-Let?
/We are often asked by our landlords when is the best time to put a property up for let? Of course the 2 years of Covid has thrown off usual expectations somewhat. However, this period aside, we believe the lettings highs and lows can be fairly predictable.
Aligning tenancies to the best times of the year is something Prime Living has always encouraged amongst our Landlord clients. This is because there are a few key benefits to planning your property letting strategically. The three key timing implications to consider are:
Return on Investment (ROI): Unsurprisingly, the rent amount achievable is based upon how much a prospective tenant (or numerous prospectives) are willing to pay at that moment. If you can time your property letting to the high seasons, it is a great opportunity to achieve the best rents.
Reduce void periods: Consider how much rent is lost for every week / month that the property is empty. Renting in favorable seasons will typically mean there are more prospect options available, and perhaps even more willing to bring forward their tenancy start date to secure a property.
Secure the best tenant: If letting in low season, we may have only a limited number of offers coming through. Add to this, if there has been a void spell, sometimes sacrifices have to be made based on current cashflow. Certainly you can limit risks by having Rent Protection Insurance, Guarantors, larger deposits and so forth. However, the ideal scenario would be to position the property to attract numerous offers - allowing you to get to choose the best one for you.
So when are the peaks and lulls of the market?
Early Aug - Mid Sept: This is the busiest time of the year. The weather is great, prospects want to move and more importantly, two key shifts are happening. Firstly, many companies have recruitment drives for early September - particularly graduate employers. Secondly, the university term starts around the middle of September. Students will be moving a bit early to get settled in before term starts.
November - mid December: Dangerous area in terms of volume as a long void could mean not letting the property until January, so watchout. We nickname mid December to Christmas ‘no man’s lands’ given the reduced level of prospects moving.
Beginning of January: Small spike in demand for those looking for a ‘fresh start’ to the new year. This includes some singles from separated couples as part of a 2022 new leaf.
Late January & February: Another low volume part of the season with tenants more interested in waiting for a warmer spring before moving.
I have a tenancy ending in an unfavourable time, what can I do?
Generally you have two main options:
Renewal - Contact the tenants 2.5 - 3 months prior to tenancy end to see if they can sign up for another term. It doesn’t have to be 12 months, so be strategic on when you would like the tenancy to end. For instance, if renewing in February, a 6 month tenancy will bring you nicely to August. Then you can do 12 month renewals after that each August.
Let it roll - As long as you have certainty the tenant won’t disappear, you can let the contract go on to rolling (statutory periodic) until summer.
Overall, if you want to increase your property return on investment, it is recommended to steer away from winter tenancy starts/renewals as that will help you have less voids, a higher volume of applicants and hopefully a higher rental for your property. Good Luck!
