Hey everyone,

I am very close to purchasing my first SFH in the Edmonton area, however one thing has been holding me back. I am unsure if it would be prudent to purchase a SFH in October as I have heard that trying to place tenants in November/winter can be somewhat challenging (especially since my ideal tenant profile is families with school-aged kids). So my options are:

1. Purchase home in October (and hope I will be able to rent it out sooner than later)
2. Wait until next year for a more opportune time to rent (ie spring/summer)

Does anyone have any experience in placing tenants during the early winter months? I am hoping to avoid a long vacancy on my first rental property and any input or experience would be appreciated!

Yes placing tenants in winter is very very tough. Prices also quite flat right now so no need to rush any purchase in Edmonton.

Easy if you are doing just one... For one thing, your first mortgage payment isn't until the end of the month so you have a free month there. 90% of SFH landlords are amateurs so it is easy to be way better than them when it comes to pricing the market, showing the unit, cleaning the unit, ect. And scour the market diligently for the very, very, very best incentives, then meet or beat them. I'd give away a big screen TV or trip or prepaid VISA or grocery card no problem. Just put in your lease something about incentives owing, ect. Easy to beat the competition hands down, no problem. I'd invest in the incentives but not give way on the quality of tenant, that part is not negotiable.

Disconnect is when landlords are lazy and haven't done the research where the market is and don't know the rent they are going to achieve for a good quality tenant.

Yes, fall/winter months make sellers a bit more flexible and you can push a closing to spring when most likely your tenants will be looking for a new place to have kids start in September. No need to budget for snow or heating costs while you market property (also take pics prior to snow).. Also since tax filing is not due until April 30th, the banks wont require most recent filings.

Note: Using a long closing date and proper offer clauses, it will allow you to market property prior to taking possession.

Anecdotally I bought a home a couple days before Christmas and it was fine. Personally I think I was able to get this home because most buyers weren’t focused on competing with me around Christmas.

It is tougher to find tenants between October and March. I think most landlords on this forum can attest to that. I Always try to make sure all places are rented by Sept 1.
The few times I didn't succeed I offered shorter term lease (I.e 6 months) which seemed to work.
Rather have a good tenant for a short term then a bad one for longer.
In any case it wouldn't hold me from buying a property with potential. Regards.

Love December January February shopping. I try for a long close but it's not a deal breaker. Colder the better. Worst snowstorm of the year, next three to ten days are absolute crickets for viewings and offers. Sometimes you luck out and a new listing comes out the morning of the apocalypse.

Work when others don't/ won't.

If you can find a great deal because of the usual winter slowdown, then it could be worthwhile to proceed. A great deal will compensate you for a few months of vacancy. And if it's a quality place in a good location and priced correctly, it may rent quickly.

Last year we had a tenant break a lease in mid-December and we found a tenant immediately by advertising a discounted rent. (The ad stated a "winter move-in discount" had been applied to the posted rent.) We informed the applicant at the showing that the rent would not be able to stay below market for the duration of the lease, and would need to increase by $X after X months. The discount was offset by the cost savings of avoiding a winter vacancy.

I agree with what seems to be unanimous opinions above.
Is the property move-in ready, or will you need to do some renovations before it's ready?

Renting in the winter can be tough...but, incentives work, and the right property is always desirable for the right tenants.
A good deal on the right SFH is more valuable than budgeting for a few months vacancy.

Some buyers this time of year will budget a few months vacancy into their initial reserve and use that idea while negotiating with sellers (take $5000 off the purchase price to cover 3 months vacancy.)

A long closing period works if the seller's are willing to do a spring possession. If they need you to close the deal ASAP, would they consider 'renting' from you until the spring? You could negotiate that if they rent from you until spring, then you will not take that $5000 off the purchase price.

I like Sherilynn's "winter move-in discount" idea. This could be a short term lease (maybe 6 months) with the option to renew, or a longer lease with the expectation that rent will increase in the spring. If the tenants want security, try an 18 month lease so that renewals fall during the warmer months.

Show the seller that you're professional about this and are considering all angles. Create a win-win scenario for them and yourself.