Rental property: What is the appropriate time to find the rental property?

Property Management Blog

Real estate has faced a downfall around the world, during the past few years. Mortgage rates are low and that is a support for the real estate market to avoid a complete crash. It is expected that soon the market will regain its pace back and we will see growth in the near future. 

The real estate market depends on various factors and it is difficult to calculate the right time of investment for new investors and seasoned ones too. Everybody is confused about the right time to invest in property. Here we are helping you to understand the market and you will be able to make wise decisions, according to the situation. We will discuss how to find the right properties and when you should buy them. You will also get information about the online rental property tools and how they can help you in your investment ventures. 

Find rental property during the highest inventory

Season plays a very important role when it comes to property investment. At different times of the year, there are peak seasons for property investment. It is a common observation that during the colder months of the year the real estate market slows down and it picks up again in spring. One reason behind this is the school year, as parents don’t want to move during the school year and they prefer to wait for summer. Moreover, shifting is also difficult in winter so buyers are less in winter and sellers are more.

Similarly, as people prefer to move in winter, rental rates also go up in summer. On the other hand, rental rates are low in winter, so we can say that the real estate market is greatly affected by weather conditions and seasons. 

Grab opportunities when inventory is high

When property prices are high and few properties are available for sale, investors avoid Investing in real estate. Most of the investors wait for fall and winter when property prices are low and inventory is high. Months from April to June have good real estate stock and inventory is full in summer as it’s the best time to move. But Competition increases during this time and the prices of the properties also increase. 

On the other hand, winter and fall are low seasons for real estate. Buyers were not interested in buying due to shifting problems and that led to low demand for new houses. It means more houses are available for sale as buyers are. Resultant, the prices of properties decrease and that makes it the best time for investors. 

A comparison between buyers’ market and sellers’ market

When an investor invests in real estate he has to consider the market as well. Some are buyers’ markets and others are sellers’ markets. In sellers’ market properties for sale are not available for a long time. It means there are fewer houses and more buyers. The characteristic of a sellers’ market is the abundance of buyers and fewer houses. When stock is low, sellers take advantage, and prices of houses increase. 

Similarly, when we talk about the buyers’ market, more houses are available but the demand for properties is less. It can be due to the season or the location of properties. When demand is low and more houses are available, this is a favorable situation for buyers. They can negotiate with sellers and buy properties at low prices. 

What is the best time to buy property at the lowest prices?

As we have discussed earlier, colder months are a better time to buy properties in terms of prices. Sellers are ready to negotiate as they have few buyers. It’s easy to get the best deal for the buyers during this time. So, we can safely say that winter is the best time to buy properties at the lowest possible price. However, you can buy good deals in other parts of the year as well. But it depends on the location and needs of the seller. If the seller needs money desperately, he will be ready to negotiate too. Moreover, local area brokers can also guide you and help you to find the best deals. 

Seasonal analysis: Appropriate time to buy a rental property

Here we are discussing the best and worst times to buy rental properties during the season. 

  • Best time: If you want to buy a primary house or a residential property, October to February is considered the best time. During this period, prices are affordable and sellers are ready to negotiate. So, if you want to buy a new house, wait for December and January to get the best deals. 

  • Transition period: As the season starts changing from March, real estate market trends also change. March and April are considered transition months and the chances to get good deals are reduced. Sellers want to wait for the hot season to get the best price for their properties. 

  • Worst time: Purchasing real estate is highest during the months from April to August. More people are interested in buying houses during these months and this is the best time for sellers. On the other hand, buyers have to face more competition and prices are higher for them. 

  • Another transition period: The hot real estate market starts slowing down in September as the temperature starts cooling and people who were interested in buying had already brought the houses. As the market slows down, it provides another opportunity to the investors as they can find houses at low prices. However, they may not be able to find the house they want, as good ones are already sold out during the high season. 

Rental property with the tenant or without tenant?

Many rental property investors ask the question, that whether they should buy a property with a tenor or without a tenant. There are pros and cons for both: If you buy a house having a tenant already, there will be no need to find one and you can avoid a lot of Hassle. Moreover, you will get instant cash without any delay in the form of rent. On the other hand, there can be some unknown legal risks, and removing a tenant can be a problem. 

If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.

Property Management Service Areas

Palm Coast Property ManagementFlagler Beach Property Management
Ormond Beach Property ManagementSt. Augustine Property Management
Daytona Beach Property ManagementSt. Augustine Beach Property Management
Holly Hill Property ManagementPort Orange Property Management
Blog Home