Winning with Winter Rentals – Why Renting in the Winter Makes Sense
So far Atlanta’s winter has not been forgiving. With below freezing temperatures dominating our January forecast, you may think tenants are focusing more on staying warm than they are on leasing new properties. Excalibur’s numbers tell a very different story.
We’re only half way through January and our tenant placement has increased by over 50% compared to this same time last year. That’s more tenants placed, less properties vacant, and quicker return on our clients’ investments. Why then is the Metro-Atlanta rental market so hot during such a cold season? We’re going to let you in on a few of those industry secrets:
Renters that are looking to move during the winter months are typically doing so because their situation requires it. Whether it’s work related, the result of selling their home and waiting to buy until after the market shifts, or any number of other reasons, those that are applying tend to be motivated by circumstance rather than simply shopping around for something better than what they already have. This often weeds out those applicants not invested in the property or the process which means you don’t risk wasting time with an applicant who’s merely looking for a “good deal.”
LOCK IN A LONGER LEASE
Despite winter being a great time to lease a property from the landlord’s perspective, it’s not necessarily the best time to move from the tenant’s perspective. This gives you the opportunity of locking in a 16-18 month lease, guaranteeing the tenant the opportunity to either move or renew in the Spring, while guaranteeing you, the homeowner, additional months without vacancy.
When our clients ask us to do a comparative market analysis on their home, our Realtors are trained not to just look at past sales, but to look at current competition to ensure our pricing is strategic when your home hits the market. During the winter months, the pool in which you are competing is much smaller, meaning your home won’t get lost in a flood of summer listings. Because of that, you have the opportunity to yield a higher market price as supply is low while demand remains high.
UPGRADING? BUY NOW!You’ve probably heard over and over again, “It’s a seller’s market! There’s no inventory! Sell!” and that’s true…up to a certain price point. 2017 statistics provided by the First Multiple Listing Service (FMLS) indicate that the Metro-Atlanta market transitions from a Seller’s market to a Buyer’s market at the $475,000 price point. This means that if you’re looking to upgrade to a price above $475k, you’ll have more options, and you’ll have more control in the negotiation process. When you decide to upgrade, consider holding on to your investment. Rather than selling, earn passive income through the leasing of your property. Watch while property values in Atlanta’s diminishing “affordable” housing market continue to rise rather than regretting that you sold it when you did.