Did you know that the price of an apartment can fluctuate daily, due to supply and demand? The affordable apartment you liked yesterday may not be so affordable today. You may be asking ‘how can the price be so different after just one day?’ There are many factors at play in apartment pricing; here are some of the biggest to keep in mind.
The Time of Year
If you’re looking for an apartment in the winter, your price will likely be much lower than in the summer. Demand for an apartment in the winter is much lower, so the price will be as well. Keep in mind though, this is because supply is also lower so you might not have as many options. However, the ones you do have will probably be listed at a considerably lower price.
Hot Tip: If you’re signing a lease in summer, consider an 18 month lease, so your renewal rolls around in the winter. Who knows? This timing might positively impact a potential renewal rent price .
Dynamic Pricing Software
If you’ve ever bought an airline ticket or rented a car, you have experienced dynamic pricing software. It’s basically an algorithm that determines the optimal price for a specific date and time. Airlines have been doing this for many years. But does it really work for rental properties? The answer is yes, Absolutely. About 20% of all apartment complexes use this software.
Strong Growth Market
A strong growth market is great for the local economy. However, increased housing demands mean increased rent prices at the drop of a hat. Don’t let this scare you away from living in a strong growth market. You simply need to be strategic, weigh your options, and avoid procrastinating. Do your research, a long commute may be more expensive than the increased rent.
The Time of Month
Apartment availability is posted at the beginning of the month. This is when the most options will be available to you. That is also the least expensive time to rent, and the end of the month is the most expensive. However, don’t entirely discount the end of the month. Every day a unit sits empty, the owner loses money. Keep your eye out for end-of-month rent specials.
The Day of the Week
If you want to rent from the hottest complex in town, be strategic about the day you apply. If you want the best deal, apply for your apartment on Monday or Friday. If you apply on Tuesday or Sunday you might pay more.
When Can I Get the Best Deal?
According to the statistics, you want to apply for a unit after you ring in the new year. Enjoy your Christmas vacation though: the end of December is the most expensive time to rent. If you can put down your application on the first Tuesday in January, you’re in business! The winter months are an undesirable time for moving. The beginning of the month is when rates are lowest. Also, Monday Tuesday is one of the cheapest days.