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Rental Cycle - Lease timing.

Discussion in 'Property Management' started by dodobird, 22nd Sep, 2016.

  1. dodobird

    dodobird Member

    Joined:
    26th May, 2016
    Posts:
    9
    Location:
    HK
    Hi all,

    It would seem my Google skills have gone down the drain as I simply cannot find any definitive answer to my question.

    I am looking for the best time/month to start/end a lease for my unit in Sydney in an area where a high percentage of tenants are overseas students.

    My property is due for lease renewal and the agent suggests November is the best time for a lease to end as if the tenant gives his 2 weeks notice, it means they would start advertising at the start of November which she states would be a peak period for students looking for accommodation in the new year. If the current tenant instead wishes to continue the lease instead of vacating - they would have to include the dead period of December as part of the next 12 months.

    I'm in 2 minds about the advice due to the below dates of a nearby Uni.

    Important academic dates:
    5 Jan Info Day
    6 Jan Summer School begins
    22 Feb Orientation Week
    26 Feb Summer School ends
    29 Feb Lectures begin (Semester 1)

    So my questions are
    1) Why would November be a peak period (according to the agent)
    2) when are students likely to come to Sydney to start looking for a property (I.e best advertising period) and
    3) What start date would they normally prefer so I can best time my lease end period to limit vacancy

    Would appreciate any input into this from those with experience with this type of situation or even current agents.

    Thanks
     
  2. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    Location:
    Australia
    Which suburb is it in? I have a unit in Camperdown (near Sydney uni) and I've found that it really doesn't matter what the month is (except for obviously no-nos like Christmas/New Year although I haven't test it) as the vacancy rate is low enough that I've always secured a tenant very quickly. It sounds like you're targeting uni student though in which case I'm fairly sure the majority of those decisions are made by students during or just before o-week.
     
  3. dodobird

    dodobird Member

    Joined:
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    HK
    It's in Glebe/Ultimo.

    Due to a previous agreement that I wont go into - we have to choose between Mid November or Mid Jan - which would be better?

    Mid Jan would mean prospective tenants would have to be looking mid to late December with the agreement starting mid Jan, November would mean tenants would have to be looking mid to late October for the agreement to start mid November..

    cheers.
     
  4. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    Location:
    Australia
    Same area generally then. If it were up to me I would probably take the mid-November option. As you mentioned, mid-January would mean tenants are looking around Christmas/New Years and the reality is that there are less people doing that and more people on leave and away during this period. Mid-november means you're on the tail end of Spring/start of summer and assuming you find tenants, they'll all be settled before Christmas.
     
  5. dodobird

    dodobird Member

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    HK
    Great - thanks for your input. appreciate it!
     
    MyPropertyPro likes this.
  6. Marg4000

    Marg4000 Well-Known Member

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    Location:
    Qld
    We always timed leases around the start of the school year. Mid to late January worked best for us.
    Marg
     
  7. Xenia

    Xenia Adelaide Property Manager Business Member

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    Location:
    4/136 The Parade Norwood, South Australia
    Mid November and mid January are both busy rental periods.

    The best time to begin a new lease however is the day after the end of a current lease.
     
    Perthguy and MyPropertyPro like this.
  8. SeafordSunshine

    SeafordSunshine Well-Known Member

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    24th Jun, 2015
    Posts:
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    Location:
    Sydney
    Dear Dodobird,
    I had a little look on SQM research and it seems from last Nov '15 it was 1.8% vacancy and last Feb '16 1.9%.vacancy factor.
    I would have expected it to be the other way around best of luck either way,
    have PM'd you also.
     
  9. dodobird

    dodobird Member

    Joined:
    26th May, 2016
    Posts:
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    Location:
    HK
    great thanks all.

    I've asked for the lease to end late Jan.
    Seaford - PM sent.