How We Cut Holiday Vacancies By 95%, this is working for me....

Question

I wanted to share something that took me almost twenty years and hundreds of managed rentals to figure out. Our team used to get crushed every holiday season with vacancies. Ten to fifteen move outs in November alone, and it felt like every tenant in America picked the worst possible week to turn in their keys. Then one day, someone on our team asked a simple question: what if the leases didn’t end in November? What if we pushed lease expirations into the summer when people actually want to move? So we started offering eighteen and twenty four month leases. The results were crazy. As our portfolio almost doubled, our holiday vacancies dropped by ninety five percent. Not a theory. Real numbers. It taught me how much timing matters more than marketing, pricing, or incentives. If you’re a landlord or investor, take a serious look at your lease end dates. That one change turned our worst season into our easiest. Curious if anyone else has tested lease timing like this. What’s been your experience with holiday vacancies?

Joanne Fagan · Answer

In my experience, timing does make a difference.  My rental is located within easy driving/commuting distance of the local medical university. While the rentals within walking distance are considered more desirable by many, including graduate students and medical residents, I do receive applications from them. HOWEVER, the timing of this is directly connected to when their academic programs start. Around here, that time is, predominantly, spring to mid-summer. My last tenant was a delightful medical resident who asked to extend his lease for an extra month, which I was happy to allow, but it pushed me into offering availability for mid-to-late September. The number of applications I received that qualified as a good "fit" for the property was noticeably less in the fall. So, I decided to offer a 6-month lease to free up availability in the spring. This produced a lovely couple who planned to move out-of-state in 6 months. Yes, I had to turn the unit over sooner, with this shorter lease, but I was able to replace the tenants with one who wants to remain in the unit for the duration of his 3 ish-year program. This timing will allow for availability in the spring, again, which I'm happy with. In addition to students, I think plenty of people or families who want/need to relocate find it most convenient to do so in spring or summer when the kids finish school.

Janice Carter · Answer

Jorge, this is such a great insight. I completely agree that lease timing makes a huge difference. I currently have two vacant rentals on the market and this is exactly the strategy I will be using going forward. Tenants are far more willing to move when the weather is nice, school is out and the holidays aren’t draining everyone’s budget.Thanks for sharing your experience, it really does validate how powerful a simple lease end adjustment can be.