How short term rentals are getting brokers through winter
As the leaves turn colors and with the holiday just around the corner, brokers with long term rental listings are beginning to worry. Over the past several weeks, the long term rental market in New York City has gone from hot to cold. As Jon Snow would say, “Winter is coming.”
Winter is a notoriously bad time to find a long term renter. Most people move during the summer when the weather is nicer, especially families with kids in school. Landlord lore is so bad that they do everything in their power to have leases due between April and September. The graph below shows why — searches for “nyc rentals” on Google hit a high point in July and slowly descend to a low point over the holiday in December each year.
Landlords trying to find a renter this time of year have few options. Stay firm on price and risk losing out on 4 more months of rent — 33% of the annual let value. Or drop price aggressively to incentivize demand, putting yourself at the mercy of the “bargain hunter”.
Now there is a third option: take advantage of short term rentals to achieve your goals.
While the long term rental market and the weather outside might be cooling, the short term market is as warm as mulled cider. Whether it’s people traveling for business or leisure, for a week or several months, alone or with family, there is always someone that needs to be in the Big Apple for something.
So don’t sit around hopelessly waiting for that perfect long term tenant this winter, consider a short term rental and you might just find what you’re looking for.
If you’re a landlord, owner or broker, and would like to hear more you can reach me directly at mvklein at gmail dot com.