When searching for a rental property to move to, have you ever liked the room and location but been worried about the high rent?
It can be difficult if you have a set date for moving, such as when you start a new life by going to school or getting a job, but did you know that you may be able to pay less rent if you choose the right time?
Of course, not all properties offer low rents, but rental housing also has peak and off-seasons, and if you time it right, you may be able to rent a property for less than the market rate.
In this article, the author, who used to work in the real estate industry, will use his experience to introduce seasonal property rental conditions, focusing on the best times and methods to reduce rent.
If you are currently considering moving or looking for a room, please use this as a reference.
Low and high rent periods
Do you know what determines the rent for rental properties?
It is determined by the physical environment of the property, such as the location, room size and layout, and facilities, and I think many people assume that it will be the same no matter when they rent.
Of course, most factors depend on the physical environment, but rent also fluctuates slightly depending on the time of year.
| Moving off-season | Busy moving season | ||
|---|---|---|---|
| Late April to early August | January to mid-April |
The off-season when rents go down is from late April to August.
The off-season for moving, or the quiet period for the real estate rental industry, runs from late April to around August, when movement of people for reasons such as going to school, getting a job, or transferring to a job slows down.
An even better time to visit within this period is from after Golden Week in May through early August.
Because fewer people are moving during this period, landlords tend to lower rents to fill vacant spaces.
Peak season is from January to mid-April
On the other hand, the busiest period for moving is from January to mid-April.
During this time, the number of people searching for new homes increases dramatically in preparation for going to school, getting a job, or being transferred.
For this reason, since there is a high probability of finding a tenant without lowering the rent, landlords and real estate companies are rarely willing to negotiate a lower rent.
Best time to get cheaper rent
As mentioned earlier, the period when you can get cheaper rent (the off-season) is from late April to August.
As moving in preparation for the new fiscal year comes to a close and fewer people are looking to move, landlords with vacant rooms are motivated to fill them somehow, which tends to result in lower rents.
This tendency is particularly stronger for properties owned by individuals than by major real estate companies, as they are more likely to agree to negotiate a lower rent.
The pros and cons of moving during the off-season
The potential for cheaper rent isn't the only benefit of moving during the off-season.
There are other benefits as well as drawbacks to be aware of.
Below we will take a closer look at the advantages and disadvantages of moving during the off-season.
The benefits of moving during the off-season
First, here are four benefits of moving during the off-season.
- Rent and deposits may be lower than the market rate
- Easy to negotiate rent
- The cost of moving is also cheap
- Have time to spare
Rent and deposits may be lower than the market rate
As mentioned earlier, rent tends to be cheaper during the off-season, but the security deposit and key money for rental accommodation may also be cheaper.
It is especially difficult to find tenants during the off-season, so property managers try to attract potential tenants by offering low initial costs such as security deposits and key money, as well as rent.
Easy to negotiate rent
As mentioned above, from the landlord's perspective, they tend to keep rents low in order to fill vacant rooms quickly.
The same psychology applies to real estate companies (agents).
When a real estate company introduces a property and a contract is concluded, it receives an introduction fee based on the rent, which becomes part of its sales.
In other words, I would like you to sign a contract for the property that I have introduced, if possible.
When searching for a rental property, if you let the landlord know that you are willing to sign a lease if the rent is low, you will be more likely to negotiate the rent with them.
It is difficult to negotiate excessively, and the amount you can reduce will depend on the original rent amount, but it is worth trying to negotiate for 1,000 to 2,000 yen as this is a reasonable range.
I recommend that you try to negotiate even if you think it will not work.
Recently, there has been an increase in cases where, while they cannot reduce the rent, they are willing to offer a free rent period.
Free rent is a special agreement under which no rent is charged for a certain period of time after moving in.
Lowering the rent reduces the asset value of the rental property, so landlords choose to attract tenants without lowering the asset value by offering special terms such as free rent.
Free rent is often for a period of about one to two months, so if lowering the rent does not work, it may be a good idea to ask if there is a free rent period.
The cost of moving is also cheap
During periods when there are fewer moves, moving companies are also in a slow season, so you can keep moving costs down.
Moving company rates peak from March to April, with rates decreasing from the end of Golden Week through August.
Moving companies also have difficulty securing customers during this time of year, so they are more likely to negotiate prices down, and if you ask for quotes from multiple companies and compare them, you may be able to keep the price even lower.
Have time to spare
During busy periods, we have to accommodate many applicants, so the services we can provide to each person are inevitably limited.
On the other hand, during the off-season, real estate companies and landlords have more time, so they have more time to avoid each potential tenant.
Therefore, they will listen carefully to your requests in detail, introduce you to properties that perfectly match those requests, and answer any questions or concerns you may have in advance.
In addition, just as real estate companies and landlords have more time, you also have more time to search for a property, as there is no need to worry about vacant properties being filled quickly.
During the off-season, you aren't rushed into making decisions, so you can take your time to think things through until you are satisfied, and you can also proceed with comparative bids and price negotiations in an advantageous position.
Disadvantages of moving during the off-season
I'm sure you've seen that there are many advantages to moving during the off-season, but of course there are also disadvantages and things to be aware of.
There are two disadvantages to moving during the off-season, so be sure to understand them.
- There are few properties
- Possible high costs when moving out
There are few properties
The off-season (starting in late April) means that many people have just moved in preparation for the new fiscal year, so there are fewer vacant properties to begin with.
Naturally, good properties with good conditions will be booked with tenants during busy periods, so if you are too particular about your conditions, you may not find any potential properties at all.
This is not recommended for those who want to choose a room from a wide range of options, or for those who are particular about conditions such as layout or location.
First, it is a good idea to ask the real estate agency what kind of vacant properties they have and check whether the conditions are acceptable to you.
Possible high costs when moving out
During the off-season, there are more properties that offer low initial costs, such as low deposits and key money, or even free of charge, in order to attract potential tenants.
However, if the deposit is free, the cost of restoring the property to its original condition when you move out will not be deducted from the deposit, making it more likely that you will be charged for this when you move out.
Regarding key money, it is common that there are no room cleaning fees because the key money is paid when you move in, but please be aware that even if there is no key money, you will still be charged for any costs incurred when you move out.
The pros and cons of moving during peak season
So far, we have introduced the advantages and disadvantages of moving during the off-season, but there are also advantages and disadvantages to moving during the busy season, so we will introduce them in order.
The benefits of moving during peak season
There are two advantages to moving during peak season:
- There are many properties
- There are seasonal specials
There are many properties
During the busy season from January to early April, many people move, so there are more vacant properties.
This means that there will be more properties to choose from, and even if you search for a room with specific requirements, you will have a higher chance of finding the room you want.
However, competition for popular properties is fierce, so if you find a property that meets your desired conditions, be sure to start taking action early, such as by going to view it right away.
There are seasonal specials
During busy periods, there are often special campaigns designed to support new students, new members of the workforce and others starting their new lives.
There may be restrictions on who can use the service, but by taking advantage of a campaign, you may be able to move at a surprisingly good price, even during busy periods.
Disadvantages of moving during peak season
There are two disadvantages to moving during peak season:
- High rent
- Moving costs are high
High rent
During peak seasons, rent tends to be higher as it is easier to find tenants even if the rent is high.
Even if you are able to move at a good price by taking advantage of the benefits mentioned above, you should understand that you will continue to pay the rent that was charged when you signed the contract.
Moving costs are high
This is also the busiest season for moving companies, so moving costs are also the highest of the year.
In addition, each company has a limit to the number of cases they can handle in a day, so it is possible that you may not be able to find a moving company even after signing a tenancy agreement.
Therefore, we recommend that you start making arrangements for your move as soon as possible.
Time to start moving
So far, we have introduced the advantages and disadvantages of moving during the off-season and peak seasons for moving.
Now that you understand the advantages and disadvantages of each, I think you've figured out the best time to move for you.
However, I think there are many people who don't know when to start making preparations for their move.
If so, please refer to the moving schedule below.
When searching for a room to move into, you should start one and a half months before the planned move-in date. If you want to give yourself plenty of time to search for a property, we recommend starting two months in advance.
When searching for a rental property, it is recommended to use more than one real estate agency.
One of them is a large real estate agency, and the other is a private agency in the area you want to move to.
Large real estate agencies have a lot of property listings, so you can gather a wide range of information.
On the other hand, private real estate agencies may have strong connections with specific landlords, and only those private real estate agencies may have property information.
Be sure to understand the characteristics of each and use a real estate agency wisely.
summary
This time, we introduced the advantages and disadvantages of moving during the off-season, as well as information on how to move cheaply.
No matter what time of year you move, there are both advantages and disadvantages, so we hope this article will help you understand the characteristics of each time.
And above all, in order to ensure a satisfying move, it is important to gather information in advance.
Don't just read this article, gather various information to ensure a satisfying move.
