Like many in the rental market, you are looking to rent your apartment at the best possible rate for maximum income. Did you know that rental rates fluctuate throughout the year, with certain times of the year offering great deals to attract tenants? Data compiled from five-year averages revealed that rents tend to decrease in October, November and December, while increasing during the first nine months of any given year, nationwide. In fact, rent tends to drop by an average of $8 per unit per month in the fourth quarter, especially when compared to an average increase of $31 in the second quarter of the year.
What About Rent Being on the Rise?
While rental prices have certainly increased over the past five years, the difference in rent increases/decrease from a particular month to the next month month has been relatively steady in the five-year period. For example, the national average for rent in June increased $9-$13 when compared with May from 2011-2015. Likewise, December rents decreased by $1-$3 from November in the same time span, nationwide.
Why Does Rent Increase Some Months and Decrease Others?
There are several factors that influence rent increase or decrease. For example, the second quarter is prime rental season. During this time, college graduates tend to begin renting their first apartments, while renters with children are looking to settle down in the right neighborhood before school starts. The demand around the holiday season, between November and January, is typically the lowest of the year. Few families want to move during the middle of the school year. Because property managers are trying to fill any vacancies, rent will be lowered or incentives offered.
Do These Trends Apply Nationwide?
The pattern holds in most rental markets. San Francisco has the largest swing, with December rents decreasing by $21 on average, then bouncing up to $18 in January. June is even worse, rents increasing an average of $53. New York and Denver also hold true to market rises and falls, with rents falling from October-November and increasing the other nine months of the year.
One place where the trend seems to differ is South Florida. In West Palm Beach, for example, rents increase every month of the year, on average. Despite this, December’s average rent hike is the lowest of the year, while February, July and September have the highest rent increases.
If you are looking to rent your unit, be sure to take these trends and factors into consideration when setting the price. You should also be sure to run a background check on all potential tenants to protect you, your investment and your other tenants. CheckPoint Screening offers a wide range of tenant background screening services, as well as an easy online lease. Contact us for more information.