Many people assume if you advertise your property in highly populated areas, rental demand will always be high. This is a misconception.
Demand for rental properties fluctuates throughout the year. You cannot always predict when tenants will leave. But, you can be financially and mentally prepared for the months with the lowest rental demand.
When is the worst time of the year to advertise your property?
December and early to mid-January are the worst months to advertise your property. And I speak from my unfortunate personal experiences.
It’s not impossible to find tenants during December and early to mid-January, but it may take longer. That’s because it’s the Christmas and New Years holiday season. Also, in Europe, the weather is freezing cold, and in Australia, it’s the school holidays.
Years ago, my tenants ended their tenancy contract a week before Christmas. I struggled to find new tenants until mid-January. But, my property remained vacant until February because the new tenants had to give notice to their current landlord.
This caused cash flow problems as I had to pay the mortgage for almost two months with no rental income support.
How you can be financially prepared
Remember, if you place an offer on a property in the later half of the year, the sale might finalise in December or early-January. So, if the tenant leaves, or you terminate the tenancy agreement, your property becomes vacant.
To limit financial difficulties in such instances, set a higher target when saving to buy a property.
Alternatively, delay or move forward the completion date. This is subject to the vendor agreeing with the date.
Another option, which I prefer, to keep the current tenant on a rolling monthly contract until February or March, when the rental market improves.
Tenancy agreements are often renewed annually. You don’t want to advertise your property every December or early-January because the tenancy agreement has ended (again).
So, do you agree that December and early January are the worst months to advertise your property?
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