Scott Safadi would like to draw people’s attention to the seasonal fluctuations that exist in the rental market. Between the months of October and February, prospective renters can expect to find more inventory, better deals, and often, even promotions, which are unheard of during the peak summer months.
Scott Safadi judges the strength of then market in two ways. The first is by rental growth, which primarily occurs over the course of the peak season, as landlords are lucky to even maintain their peak September rents through the course of the winter months. The second way that Scott Safadi judges the strength of the rental market is by the extremity of the slowdown during the winter months. There are always people looking for apartments in the summer months, regardless of the market conditions, however, the margins are on what happens during the slow season.
Scott Safadi believes that a robust winter rental market is a sign of a stable and vibrant rental market. Scott Safadi would rather see a strong winter market than double digit growth over the summer months, as one is an indicator of a potential boom bust situation, while the other represents stability and consistency, something that all landlords should want.
In closing, Scott Safadi believes that sometimes it is better to monitor exactly how bad the bad times are rather than just focusing on how good the good times are. In the context of an economy that has shown itself quite susceptible to huge booms and even bigger busts, it’s good to measure the baseline, which in our world is the winter rental season.
So far, the 2014 slow season has shown itself to be reasonably robust, a very good sign.
Scott Safadi has managed apartments throughout the California Bay Area for over a decade. He exclusively manages properties with 16 or more units.