Seasonality-Adjusted Lettings in BTR: A Strategic Approach to Maximising ERVs Year-Round

The Myth of Linear Rental Growth

Most large BTR operators set rental pricing quarterly, bi-annually, or annually, often assuming a fixed year-on-year increase (e.g., 3.5% YoY). However, rental demand does not follow a linear line. Instead, it fluctuates based on local seasonality, tenant demographics, competitive landscape, and market trends.

Ignoring these fluctuations can lead to unnecessary voids, suboptimal pricing, and lost revenue. Understanding and adapting to seasonality ensures operators achieve higher occupancy rates and better rental yields.

Understanding Seasonality in the BTR Market

Each rental market, property type, and tenant demographic follows unique seasonal patterns. Leasing the property at the right time can result in significant rental uplifts, while poorly timed vacancies can lead to prolonged voids and rent reductions.

Examples of Seasonality-Driven Pricing Trends:

Each location, as well as each unit and property type, experiences different seasonalities based on various external factors.  This means they follow different rental curves, and a one-size-fits-all pricing strategy is ineffective.

For example, large family homes in a more suburban area like Wimbledon can achieve up to 20% higher rent in July compared to December.  In contrast, one-bedroom apartments in Canary Wharf see peak demand in May, after Finance professionals receive their annual bonuses and look to upgrade their living arrangements. Meanwhile, two-bedroom apartments in the exact same area tend to hit their highest rental values in August, as professional sharers frequently move during the summer months.

Recognising the key factors that directly impact your asset is crucial for maximising returns year-round.

Strategies to Minimise Void Losses in Low Season

When tenants vacate during a low-demand period, landlords obviously cannot wait for peak season to relist the unit. Instead, leveraging flexible leasing strategies can help secure tenants and maintain rental income.

Tactics to Optimise Occupancy Year-Round:

• Flexible Contract Lengths: Avoid defaulting to 12-month leases. Adjust lease terms to align with high-demand periods for renewals, adjusted to the unit type’s peak season.
• Extended Fixed-Term Contracts: Offer 18- or 24-month contracts to prevent leases from ending in low season.
• RPI-Linked Rent Increases: Implement inflation-linked rent escalations to ensure sustainable rental growth.
• Short-Term Lets as a Buffer: Consider short-term tenancies or corporate lets to bridge low-season gaps.
• Fixed date break clauses: allow break clauses only in specific dates, adjusted to the local peak.

How Home Made Maximises BTR Performance with Data-Driven Insights

At Home Made, we use real-time market data to help BTR landlords optimise rental pricing and reduce voids, increasing portfolios’ net income by 5-30% .

How We Use Data to Drive Leasing Success:

• Market Monitoring: We track seasonal demand fluctuations at a granular level to determine the best listing windows for each unit type.
• Dynamic Pricing Strategies: Our data-driven pricing recommendations ensure landlords achieve the best possible rental value without prolonged voids.
• Optimised Marketing Timing: By aligning advertising strategies with peak demand periods, we increase enquiry volumes and conversion rates.
• Portfolio-Wide Insights: We help landlords balance lease expirations across their portfolio to mitigate seasonal risks.

Maximising Occupancy with Home Made’s Unique Model

Home Made’s tech-enabled operating model provides BTR landlords with a highly scalable, cost-effective leasing solution, whilst maintaining resident-first approach. We eliminate inefficiencies by centralising operations, reducing overhead costs, and offering a data-driven approach to leasing. With nationwide coverage, we connect landlords with a wider pool of renters, ensuring maximum exposure for every listing, regardless of season.

With a fully transparent, fixed-fee pricing structure, we help landlords achieve higher occupancy rates while minimising operational costs, making year-round success in BTR more attainable than ever.

Conclusion

A seasonality-adjusted leasing strategy is essential for BTR operators looking to maximise occupancy and rental income. Relying on fixed rental growth assumptions can lead to void losses, but understanding seasonal demand patterns per location, unit and property type enables better pricing and lease structuring.Home Made’s data-led approach helps landlords stay ahead of market fluctuations, ensuring consistent performance across all seasons. To learn more about how we can optimise your BTR portfolio, contact btr@home-made.com.

TL;DR Executive Summary

Seasonality significantly impacts BTR leasing performance. While many landlords apply fixed annual rental growth assumptions, real estate markets follow distinct seasonal trends that influence pricing and occupancy rates. A strategic approach—leveraging localised data, flexible lease structures, and seasonality-adjusted pricing—ensures landlords maximise occupancy and rental income year-round. Home Made’s data-driven insights empower BTR operators to navigate seasonal shifts effectively, reducing voids and optimising yields.