Rental prices may be lower in winter but beware that options may be limited, expert says
Winter months traditionally see lower rent prices, but summer is when most apartments are available for tenants
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When it comes to rentals, timing does play a role.
Monthly rent prices generally do not stay the same throughout the year. For the most part, they fluctuate, and even a small decrease in monthly rent could save you a lot of money over a 12-month lease.
If you're on the search for a new apartment, here are key tips you should know about the best times to sign a lease.
The best time to rent an apartment depends on what your priorities are. If your top priority is to save money, winter is the way to go. (iStock)
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- When should I start looking for apartments?
- What months typically see lower rental prices?
- What time of year do successful rent negotiations happen most often?
1. When should I start looking for apartments?
If you are looking for a new apartment, preparing ahead of time could not only save you money but also make your search less stressful.
"Since most landlords require at least 60 days’ notice, if you decide not to renew your lease, it’s a good idea to plan for around 60 days to find your next apartment," Jiayi Xu, economist at Realtor.com, told Fox Business in an email. "You can also extend this time frame to 90 days to give yourself a bit more flexibility and a larger cushion."
Once you start searching for apartments, it can quickly get confusing, and you can begin mixing up places you've looked at in person and online. To keep yourself organized, create a spreadsheet where you keep track of important information about each place you're interested in, such as rent price, amenities, extra fees, etc.
When you begin your apartment search, keeping track of all your findings on a spreadsheet can help you stay organized. (iStock)
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That way, you can easily compare and contrast all the apartments you come across.
2. What months typically see lower rental prices?
"Generally, rental prices are lower in the winter compared to the summer," Xu said.
From a budget perspective, the winter is considered the best time to rent with the low prices often offered, but there are other factors to keep in mind, such as the number of units that will be available to you.
"Summer months typically bring a surge in available apartments while winter offers lower prices," Xu said. "This means there's a trade-off between finding a dream home with more options or securing a lower rent price. The summer months see more moves, resulting in higher turnover and more listings. However, with increased demand during this time, renters may face higher prices as demand drives costs up."
Typically, winter months will have lower rent prices, though there may not be as many options available to you during that time. (iStock)
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If you decide to sign a lease in the winter, the moving process may not be quite as easy as in the spring or summer, but for the lower prices, it may be worth it to plow through the snow with your suitcases and boxes.
3. What time of year do successful rent negotiations happen most often?
The price you see may not always be the price you get for an apartment. In fact, you could even get the price lower.
You can absolutely negotiate the price of apartments, but the time of year when the negotiation happens could play into your success in securing a better deal.
"Tenants are more likely to have successful negotiations during the winter," Xu told Fox Business. "Since most moves and relocations occur in the summer, many landlords may struggle to fill their properties in the winter. Taking advantage of this timing could help renters secure a better rental deal."
You can negotiate the price of rent at whatever time of year you sign your lease, but if you sign during the winter, it could be to your benefit. (iStock)
If you are moving into a new apartment, there is plenty you can bring with you that could help in your negotiation.
"It will be helpful to create a rental resume that includes their rental history, employment details, credit score and other relevant information to demonstrate reliability and trustworthiness," Xu said. "This can be especially effective for landlords who are struggling to find suitable candidates for their properties. Researching comparable rental listings in the market could also be a smart strategy. Finding a similar property at a lower price can provide tenants with strong leverage when negotiating a rent reduction."
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If you are a current tenant of a property whose lease is about to end, you, too, have the power to negotiate a better deal.
"It can be beneficial for current tenants to emphasize the advantages of their continued stay, such as saving the landlord time and money on screening new applicants and avoiding potential rent loss," Xu said.
All in all, when it comes to negotiating, always be well-informed. Do your research prior to having that conversation with a landlord and have a target number in the back of your mind that you are looking to sign off on.
Also, know your budget and what you can afford ahead of time so you don't end up signing a lease that puts you into financial trouble.