4 min readBuying an investment property to rent out always comes with some level of risk. Even if you carefully screen every applicant, you could still end up with a nightmare tenant who damages the property. Then there are the usual costs of homeownership, from appliances breaking down to natural disasters that can leave you with expensive repairs.
But perhaps the biggest risk of all is having your rental sit vacant for an extended period. A property's location, price, and features all play a major role in how quickly it rents, but timing matters too.
“There's definitely a seasonal rhythm to rental demand, but I wouldn't call any single month universally ‘bad,’” explains Zillow’s senior economist, Kara Ng. It depends on both where you are, she adds, and what kind of rental you’re putting out there. That being said, there are definitely seasons where the market is slower.
We reached out to three real estate experts, asking them to reveal which months generally are the worst and the best to put a home out for rent, as well as what they would tell a landlord who’s having issues finding a tenant. Keep reading to find out what they said below.
When Is the Worst Time to Put a Rental on the Market?
No real estate professional will say there’s a ”worst” time to put a house out for rent, as the demand for units in this day and age always tends to be there. The experts we reached out to, though, all agreed that the late fall through the holiday season and winter is one of the more challenging times to bring a new rental to market.
“Once you get into November and December, you’re competing with more than other rental properties; you’re competing with the holidays, travel, school schedules, and people simply not wanting to move,” Danielle Andrews, a broker with Realty One Group Next Generation, tells House Beautiful. The idea of harsh weather really only affects markets that experience all four seasons, so this “bad” period is shortened in places that have very mild winters.
However, the type of rental plays into this, as well. “For example, short-term rentals are the most seasonal,” explains Jeff Hurst, CEO of Furnished Finder, a flexible rental platform. “Mid-term rentals (30-plus days) can be more consistent than short-term, as they appeal to renters who may need longer-term accommodations throughout the year rather than one-time vacation rentals.”
Their peak tends to be in the summer, unless you’re in a college town and your target tenants are students. And if the ideal tenant is a family, then there’s likely to be less movement during the school year and increased occupancy during school breaks. This is why these real estate professionals have a hard time saying there’s a “worst” time to rent out a home—there are so many factors that come into play.
If you notice there’s a “bad” time to rent to your targeted demographic, but your tenant’s lease starts during that period, you can always try to customize the lease length to your advantage.
“If I have flexibility, I try not to create a lease cycle that repeatedly puts a property back on the market during the slowest part of the year,” Andrews says. “Sometimes a 10-, 14-, or 18-month initial lease makes more strategic sense than automatically defaulting to 12 months.”
When Is the Best Time?
Though it depends on the local markets, both Andrews and Ng agree that the late spring through early summer provides landlords with a larger pool of potential renters.
“Zillow Rentals data shows that listing views, messages to property managers, and rental applications typically peak in the first week of June,” Ng adds. “Our renter survey data also finds that moves are most common from March through June.” However, she points out that this means more competition from other available units on the market.
Andrews also explains that just because demand is high, this doesn’t mean landlords should overprice the property—this is actually one of the biggest mistakes she sees.
“A home can be beautiful, in a great neighborhood, and listed during the strongest rental season of the year, and still sit if the rent is $200 or $300 above what comparable properties are commanding,” she explains. “Renters have access to the same internet landlords do. They are comparison shopping.”
How to Pique Potential Tenants’ Interest
We’ve long argued that you shouldn’t design your home solely for resale value, and the same idea goes for renting. Hurst puts it simply: “Trying to appeal to everyone often results in appealing to no one.” Looking at the architecture, neighborhood, and person you’re wanting to attract, you should be intentional about the way you redecorate the property, especially if it’s coming furnished.
Make the home easy to say “yes” to, adds Andrews. Photography should be professional-looking and updated, videos should be steady, the property should be well-maintained, application requirements should be easy to find, and communication should be frictionless. It also helps if there are convenient showing options.
“If comparable properties are offering incentives, you may also need to consider something like a reduced move-in cost or another reasonable concession rather than simply allowing the property to sit,” she says.
And do not become fixated on achieving a particular monthly rent without also calculating the cost of vacancy. Oftentimes, holding out to get an additional $100 or so per month can cost you more than getting a lower monthly payment sooner. “If your unit is empty, it's probably not worth waiting for peak season to lease it out,” Ng says. “Whatever monthly rental gain you would get in the spring is likely dwarfed by the carrying costs of keeping the unit sitting vacant.”
Eventually, the market will tell you why your rental isn’t getting applications, though. If similar units are being picked by tenants while yours is being passed by, compare what you’re offering and what the competition is offering. Listen to what the market is saying and be willing to adjust.
