It’s no secret that residential real estate investments are likely to provide steady long term returns.
In fact, the average 25 year return for residential investments is 10.5% according to the National Council of Real Estate Investment Fiduciaries May 9, 2019 report (Maverick, 2020).

It’s also no secret that minimizing vacancy between tenants means fewer days of lost rent – one of many factors in maximizing returns on your residential real estate investment. An attentive and effective property manager knows this and will strategically end all leases between March and June to best serve both your investment interests and the renter experience.

At Crosstown Properties we make a concerted effort to have all of our leases end on the last day of March, April, May or June – This allows us to best serve owners’ return on their investments by minimizing both days on market during a sale as well as days of lost rent under our management.

There is a cyclical increase in rental activity during these months which minimizes vacancy between tenants:

• People prefer to move during the spring and summer months because the weather is more conducive. If someone can control the timing of a job transfer and move, people choose the better weather rather than the middle of winter when the weather can be so bad.
• Renters with children also like to move during the summer months. It is easier to move when kids are out of school and also considerably preferable to change schools at the beginning of a new year rather than in the middle of a semester.

Further, March, April, May and June are also traditionally the hottest residential sales months. By having our leases end during those months, properties are already vacant and more available to meet the sales market.

This strategy not only minimizes vacancies between tenants but also positions our owners in the ideal market timing should they choose to sell the property.

It’s a win-win approach! The strategy of ending our leases on the last day of March, April, May or June allows us to be considerate of the renter’s experience and their ideal time to move while simultaneously serving our owners’ best investment interests.

References
• Maverick, J.B. “Average Annual Returns for Long-Term Investments in Real Estate.” Investopedia, Dotdash, 17 Mar. 2020, http://www.investopedia.com/ask/answers/060415/what-average-annual-return-typical-long-term-investment-real-estate-sector.asp

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