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The Bay Area is one of the most expensive locations to live in, and many people have started renting out their rooms in order to cover their own rents or mortgages. However, I have a feeling that you already know all this and are probably in the same position since you did after all click on this article. So I will spare some of your time and jump straight into what you came here for, so you can further maximize the use of your properties.
Seasonality is a concept that definitely affects the renting industry, be it a whole house or just a room. With seasonality also comes the best and the worst times to rent out your rooms.
Worst: Winter Time (October - December)
Winter is usually the worst time to rent out any type of property. In many cases around the country, it has more to do with the snow, as it makes it harder to move into properties, discouraging tenants from renting. This ultimately makes it harder for you to find tenants and also decreases the price of the rent due to the lower demand. However, the Bay Area experiences rain instead of snow, which has similar effects, as people are discouraged from moving under the rain. Additionally, another aspect to consider is the holidays/festivities from October to December, as people prefer not to worry about moving during the holidays. After all, people would like to be settled at home with families to celebrate Christmas and prepare for New Years. In fact, during the winter time, many people leave the Bay Area to spend the holiday with their families. Hence, taking all these factors into consideration, the winter time is not the best time to rent out your rooms as there is less demand for them, which not only makes it harder to find tenants but also drives the rent price lower. Basically, renting your room out during winter time will definitely limit your maximization of your time and property
Best: Summer Time (March - August)
Summer is definitely the best time to rent out your rooms for the mere fact that there is higher demand, which in turn leads to higher prices and makes it easier to find tenants. There are many reasons for this significant increase in demand. One of them is that this is the time new jobs begin in the Bay Area. This means there are a lot of workers looking for housing, especially with the huge amount of startups and companies that operate here in the Bay Area. Of course, not all of these employees will be in the market to rent a room. Nevertheless, there will still be employees starting their careers after college who would prefer to rent a room in order to save money, especially with the high prices in the Bay Area. Similar to the new professionals, college students will also contribute heavily to this demand, as many of them want to sign leases before school starts. This market is especially relevant to the room renting industry, as college students have limited budgets, meaning they would prefer to rent out rooms over apartments or houses as it would ultimately be cheaper. Lastly, another factor to take into account is that children will be out of school, which makes it easier for families to move, as they wouldn't want to interfere with their children’s academic year. Of course, this market may not be as relevant, as most families would not be renting out a room.
All in all, this higher demand ultimately leads to significantly more rental applications. In fact, there is a 51% increase in applications for summer compared to winter (TransUnion). This increase in applications ultimately allows you to be more selective and find the right tenants for your property. Finally, the higher demand also increases the price of the rent, which allows you to maximize on your rooms. Summer is decidedly the best time to rent out your rooms compared to winter. However, the larger demand also triggers a higher supply as other landlords will also be thinking the same thing, and many people’s lease will also be ending around that time, meaning there will be more properties in the market, meaning more competition. Of course, the competition does not compare to the significant increase in demand and the fact that one can offset it by how and when you list your rooms and properties. Nevertheless, you could still maximize your profits at any time of the year, by pricing your rooms just right using Rentalios. All in all, if you want to maximize on your property, and cover as much of your rent and mortgage, the summer time seems to be the best time to rent out your unused rooms.
References:
Collatz, Andrea. “The Best Time to List Your Rental Property.” SmartMove, TransUnion
Rental Screening Solutions Inc, 11 Aug. 2018,
www.mysmartmove.com/SmartMove/blog/best-time-list-rental-property.page.
