Peak periods for new leases
While, of course, it is possible to find a good tenant at any time of the year, there are generally 2 peak periods that will provide more options for investors. Capitalising on these 2 peak periods in the rental market will yield more suitable applications in line with demand and so increase the potential for an optimal rent value to be achieved. Your return on investment (ROI) can be naturally maximised through managing a well-timed lease cycle.
New Year: January – February
New Year is the busiest time for turnover in the rental market and the time of year that people most want to move. The need to move could be triggered by a work transfer, students starting university or the desire for a new location or lifestyle. Summer is also an easier time of year for people to organise packing, cleaning and all the other details involved in moving house.
The average lease in Queensland is for 12 months and the time following New Year is when most leases are due to expire. The majority of renters will make a change at a time when they won’t need to pay extra costs that a break-lease may incur.
Mid-year/EOFY: June – August
This is also a busy time of the year in the rental market. With many 6-month tenancy agreements set to expire mid-year and longer school holidays that enable families & university students to prepare for a move, this is another optimal time for attracting great tenants.
Having said that, tenancy agreements can start or end at any point in time, and the supply of rental properties will ebb and flow. Just because your tenant’s lease expires in October doesn’t mean it will be difficult to find a tenant. A good property manager can find suitable tenants at any time of the year and at any point in the property cycle.
If you need help managing your investment property, get in touch with the Red & Co team on 1300 88 73 28 or email [email protected]