The landlord can't take a vacation - 5 tips for the hottest season of the year

I have been working in the field of investment property rentals for six summers now. Throughout most of my time in the industry, starting from the COVID-impacted summer of 2020, we have had to operate under various exceptional circumstances. Despite the challenges posed by the pandemic, plummeting demand, and inflation, a consistent trend persists in the market. Q1 shows signs of revival and a strong month, followed by a moderate improvement in Q2. Q3 yields the best results of the year, and Q4 sees a decline in activity. Therefore, the rental market performs best during the holiday season and especially at the beginning of academic semesters.

Especially in challenging years, the statement "the landlord can't take a vacation" becomes even more emphasized. Over the past few years, there has been talk of a tenant's market, where landlords compete for financially capable and long-term tenants. Landlords simply cannot afford to overlook applications or delay their processing, postpone apartment showings due to their vacation, or be inflexible about lease terms. A good tenant will always find a place to live.

On the other hand, companies within the industry also don't take a break during the peak season. I myself have operated as the CEO of Fiksuvuokraus.fi for four summers during its rapid growth phase. After a year following a pivot, I served as the Sales Director and now function as an independent, licensed rental broker. While we were building Fiksuvuokraus.fi as a digital toolbox for private landlords in the realm of self-rental, I offer high-quality Turnkey solutions with a boutique approach in my current work.

The revenue development of Dwellet Oy, the parent company of Fiksuvuokraus.fi, during my tenure as CEO. Notably, the accounting year of 2020 was shorter. The Annual Percent Growth Rate for this period stood at an +60%.

Below, I have compiled the five most crucial tips for landlords during the summer season:

1. Consistency - It's worth holding onto a good tenant. Have you ever considered lowering the rent? It's understandable to want to hold onto the achieved rental level, but which is costlier, a temporary reduction of a few tens of euros or a few vacant months with potential brokerage costs on top? Rental property marketing times have doubled compared to two years ago.

2. Marketing - However, if a tenant does decide to leave, it's wise to swiftly publish a high-quality rental listing across all available channels (at least on platforms like Oikotie, Vuokraovi, Tori, and local housing groups on social media). A well-crafted listing should include high-quality, up-to-date property photos along with a floor plan, comprehensive and enticing description, and clear contact instructions. Avoid posting an incomplete listing initially, as the first few days are crucial for visibility and impact!

3. Pricing - It's crucial, especially when changing tenants, to assess a realistic rental rate. If you last rented your property before 2021 and annual adjustments have been made correctly, it's highly possible that you might need to consider lowering the rent. You can seek assistance from a local market-savvy professional or compare your property to currently listed units within the same postal code area.

4. Communication - When you receive an inquiry from a prospective tenant, reach out to them by the following day, not the next business day, but right away. The tenant isn't just considering your property, so scheduling a viewing as soon as possible is crucial. With the rental market favoring tenants, it's inevitable that landlords need to conduct more showings on average than before to successfully rent out a property.

5. Rental Agreement - When you find a suitable candidate, it's advisable to finalize the agreement as soon as possible, for the reasons mentioned earlier. During the negotiation of the agreement, be prepared to make compromises on both sides. Consider if you could make the agreement more appealing to the tenant by allowing options such as replacing the security deposit with a monthly payment service or granting the possibility of moving in before the rental payment obligation begins.