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Worst month to find renters

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Joe M.

Real Estate Investor from Hartville, Ohio

Aug 08 '10, 11:29 PM
2 votes


A couple questions.

In your experience when is the worst time to have a vacancy? My guess is around the holiday season.

Second question is from a risk perspective. I have an opportunity to purchase a house that is next to one I already own. I like the idea of having two places close to each other from a logistics perspective. However should I be concerned about risk factors such as a neighborhood fire, giant crime spree the drags the area down etc. Just concerned about risk exposure with two houses next to each other.



Mark Updegraff Donor

Real Estate Investor from Rochester, New York

Aug 08 '10, 11:45 PM


Hey Joe,
Worst months for finding tenants are nov-jan. Spring / summer the best.

I keep my rentals close so I can exit w/ a turnkey package.

Cheers,
Mark



Medium_leavesMark Updegraff, Updegraff Development LLC
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Bienes Raices

Orlando, Florida

Aug 08 '10, 11:47 PM


Originally posted by JoeinOH:
A couple questions.

In your experience when is the worst time to have a vacancy? My guess is around the holiday season.

Second question is from a risk perspective. I have an opportunity to purchase a house that is next to one I already own. I like the idea of having two places close to each other from a logistics perspective. However should I be concerned about risk factors such as a neighborhood fire, giant crime spree the drags the area down etc. Just concerned about risk exposure with two houses next to each other.


I have the same concerns--tornado or tropical storm or rising waters messing up both houses at the same time. However some might call that paranoid. But I think if it's a good deal it's worth the risk. And the risk probably isn't that high.



Mark B

Architect from Albuquerque, New Mexico

Aug 09 '10, 12:12 AM
1 vote


I agree, at least around here, summer is easiest and winter is hardest.

As for properties next to each other, I love it. I own a 4-plex next to an office building. I can manage both of them much easier because of the proximity. I wouldn't worry about things that insurance can cover.

Actually, I think if you feel the neighborhood is worth investing in (for one property), you should feel it is worth owning 2 properties there. In general, I wouldn't invest in an area I don't think has some level of value.

So, go for it!



Mike McKinzie

Accountant from Garden Grove, California

Aug 09 '10, 12:28 AM


It is harder to find renters in the winter time. If you live in a snow area, folks hate moving in the snow. Holidays are a tough time to move. But on the other hand, people looking during this time are usually more serious and really have to move.

As for having all your homes in one area, that is like having all of your 401K in one stock. Just hope it is Microsoft and not Enron. Ask those who had all their rentals in Las Vegas, Southern California, Phoenix or Florida. They took a beating. Having just 2 or 3 in one area may not be bad, but at some point, you will want to diversify somewhat.



Ana Hyler

Real Estate Investor from Lincoln, Nebraska

Aug 11 '10, 04:11 AM


Speaking of this topic....I'm having a tough time renting my basement level apartment in a 6-plex. Only 2 showings in a week. WOW ! Not liking this down cycle. Anyone else having this issue?



Jennifer Minge

Property Manager from Atlanta, Georgia

Aug 11 '10, 12:08 PM
5 votes


Worst month is December. Second worst month is January.

I disagree with the others about having all your rentals in same area. I own 7 quads and they are all within walking distance of each other. I am not driving all over town to service them. They are local to me so I can check in on them easily which I could not do if my properties were in another state. With my properties being so close, I know almost all of the property owners and we watch out for each other's units.



Charles Perkins

Landlord from Seattle, Washington

Aug 11 '10, 12:18 PM


Snow or no snow, December is by the worst month and Like Jennifer said January runs a close second. When I have had vacancies in these month's the number of applicants is always much smaller and the quality seems poorer.



Bryan A. Donor

Real Estate Investor from Charlotte, North Carolina

Aug 11 '10, 12:28 PM
1 vote


absolutely december and january for me....holidays put a huge dent in tenant's bank accounts...but by late jan. and february come around, tenants are getting their refunds back just in time to give me a deposit!!



Bryan A., Carolinas Revitalization, LLC
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Greg B. Donor

Real Estate Investor from Texas

Aug 11 '10, 12:39 PM


Bryan beat me to it. From about Thanksgiving to late January is the toughest time.

I have had luck by hanging Christmas lights on my vacant units to get people to notice them. Still, didn't get the lease signed until late January though.



Phil Petite

Real Estate Investor from New York, New York

Aug 18 '10, 03:16 AM


As mentioned already, Spring and Summer are the best months to attract renters. However, late Winter and early Spring bring out some motivated renters. Beware of these motivated renters, do your due diligence (understand why they have to move, their circumstances, etc.) in order to mitigate your risk.

As for having properties in the same area, I'm in favor of this strategy!



Peter Giardini Donor

Real Estate Investor from Baltimore, Maryland

Aug 18 '10, 04:08 AM


December through January... nothing new here.

As for owning in one location... I guess I like keeping them close... owned 18 duplexes in a three block area.



Joshua Dorkin Verified Donor

BiggerPockets Founder from Denver, Colorado

Aug 18 '10, 05:50 AM


December, hand's down.



Medium_bp-squareJoshua Dorkin, BiggerPockets
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Mitch Kronowit Donor

SFR Investor from Orange County, California

Aug 18 '10, 06:16 AM


Originally posted by Bryan Alenky:
... but by late jan. and february come around, tenants are getting their refunds back just in time to give me a deposit!!

That's right when we found our most recent tenants. And they've been great so far.



Jon Klaus Moderator Donor

Real Estate Investor from Garland, Texas

Aug 18 '10, 07:40 AM
1 vote


I also love my homes close together.

Related to 2nd question: How hard is it to rent right AFTER school starts? As in the next 30 days or so?



Jon Klaus, SellPropertyFast
E-Mail: [email protected]
Telephone: 214-929-6545
Website: http://www.sellpropertyfast.com


P NW

OR

Aug 19 '10, 05:22 AM
2 votes


John, September is usually good for me.

School start only matters to people with school age children. They are the ones who want to get settled before school starts. If they can think ahead that far. Some of them can't.

September weather is good for moving. Tenants play when they aren't at work, they don't look for a new place to live. By September, they have had enough rafting and camping. It's just before hunting season, when they also won't look for a place to live.



Joe M.

Real Estate Investor from Hartville, Ohio

Aug 24 '10, 11:06 PM


Great information here. thanks everyone for answering my questions.

I did in fact buy the house. The timing stinks because it will probably take another 3 weeks or so to close, then I'll need another 4 weeks for rehab work.

So I'm looking at this house being ready to rent around the first of November.



Aly L

Real Estate Investor from Middletown, New Jersey

Aug 24 '10, 11:26 PM


Here in NJ, the worst months for me have been September to January. And that's when I bought my first rental, and had my first eviction. Took 2 - 3 months to re-rent the place.

I'll be closing on a couple of condos in FL in the next 2 months, so we'll see if things are similar there. At least tenants don't have snow and cold to deal with when moving.



Bill G.

Real Estate Investor from Springfield, Missouri

Aug 24 '10, 11:34 PM


I'm with Josh, who wants to move during the Christmas season?



Jon Klaus Moderator Donor

Real Estate Investor from Garland, Texas

Aug 25 '10, 05:14 AM
2 votes


Originally posted by JoeinOH:
Great information here. thanks everyone for answering my questions.

I did in fact buy the house. The timing stinks because it will probably take another 3 weeks or so to close, then I'll need another 4 weeks for rehab work.

So I'm looking at this house being ready to rent around the first of November.


Joe, lately I've had good success with pre-leasing my homes. I leased one at the end of July that won't be finished with rehab for another month. The tenant has a flexible situation with the move out date in their current home. They seem very happy to wait and watch the rehab process. I've also pre-leased 3 other homes this summer. Give it a try, some tenants want to sign and put down deposits in advance.



Jon Klaus, SellPropertyFast
E-Mail: [email protected]
Telephone: 214-929-6545
Website: http://www.sellpropertyfast.com


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