Moving Trends Insights that will help you Maximize your Rental Property Income!
The last month of the decade is here and you are probably pondering on your 2020 financial well-being. If you’re a Property Owner, we’ve got good news for you because this is an opportune moment to review important numbers and to strategize better. If you own an income property, now is the perfect time to think about how to maximize your rental property income. How long does it take to rent out a unit? When do tenants move in/out? Where do they move to?
First, Why are people moving?
Americans move for a variety of reasons. Some reports say that the top five reasons why people move are due to marriage or starting a new household (15%), wanting a new or better home (15%), better neighborhood and other housing reasons (40%), establishing own household (10%), finding a new job or job transfer (20%). For these, almost half of the movers said housing was the reason they relocated.
How long does it take to rent out your unit?
Leasing timeline has an average of 30-45 days for which it includes, marketing, approval of the applicant, and holding of the unit, all depends on how motivated the applicant is to rent the unit. Think about all of the prep work that goes into marketing — cleaning, photography, posting ads, managing tenant inquiries, conducting background checks, etc. But in our experience, it takes about 7-14 days to rent out a unit in the Bay Area in the summer and 15-20 days in the winter. To maximize your rental property income, aim for a shorter vacancy by getting all the help you could get from a property management company. We will assist with all the marketing, home preparation, and managing of your rentals. Make your life be stress-free!
When is the peak season for moving?
There are various factors when it comes to moving. Generally speaking, December typically has the lowest point for moving, while June is considered as the peak month. Note that late spring and summer are the busiest months for relocation projects. January can sometimes be a busy month as people want to make a change to their lives. Perhaps they are starting a new semester or just want a new beginning for the new year.
December and January are typically quieter months for tenants looking to move. As a landlord or property owner, if you currently have a tenant in your property who wants to vacate your unit, you may want to offer them an incentive to stay through February. That way, your unit will not sit on the market without any rental income. Perhaps you can offer a 25% discount until February/March when more people are looking to move. Besides, study says, renters who start their search and contact properties at the beginning of the year are 10 percent less likely to actually move than those searching in the peak summer months.
Finally, where are people moving to?
Since housing prices keep rising in the Bay Area, many people are relocating to different cities or even states. San Francisco natives are opting for the East Bay or other areas where it is less expensive to own or rent a home. Relocation routes communicate the changing lifestyle that people want and desire. This doesn’t just apply to Bay Area residents. For example, New Yorkers are looking to escape the urban jungle and they find the ideal replacement of their abode to warmer climates in Florida and California.
Ready to find out the top six routes for cross country movers in the US? They are 1) California – Texas; 2) New York – Florida, 3) California – Washington, 4) California – Arizona, 5) New York – California, and 6) Massachusetts to New York.
If you would like to maximize your rental property income, you should invest in properties in any one of these states with the busiest routes for local moves, California, Florida, and New York.
I hope you find these statistics valuable answers to your questions on the moving trends when it comes to tenants’ turnover. In conclusion, it takes an average of 30-45 days to lease out your rental unit. So you need to get ahead of the prep work or get all the help you will need to avoid long vacancies. December and January are typically the months you might want to put in efforts on marketing rentals for these are the quieter months. People are moving to warmer climates so you might want to consider investing properties on the locations mentioned above.
What’s it like working with The Cal Agents? If you have a property for lease, we will take care of everything from beginning to end.
Our services include:
-Professional photography and videography
-Repair and maintenance management
We will even guide you through the process of obtaining your business license so all of your basis are covered. There will be some paperwork, but we will help you navigate through it all. As a new landlord, we will give you suggestions on how to set the rent based on the market rent price.
If you are located in the Bay Area, are you planning on staying or relocating? We work with a lot of Landlords both locally and out-of-state. We take the headache out for you so that you can enjoy receiving passive income month after month. Contact our Property Managers for a free consultation!