The four phases of the business cycle are peak, recession, trough, and expansion.

There are four phases to a business cycle: peak, contraction or recession, trough and recovery or expansion. A recession is defined as a decline in economic activity, lasting more than a couple of months.

The business (or economic) cycle is made up of four phases: expansion, peak, recession, and trough. Expansion is an economy’s natural state, and is characterized by rising GDP, low unemployment, healthy sales, and steady wage growth. An economy enters the peak phase as growth slows and inflation continues to rise.

Business Life Cycle

• The business life cycle is the progression of a business in phases over time and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline.
• Each company begins its operations as a business and usually by launching new products or services.

Perhaps the simplest recession forecast is that historically about 1 in 5 years in modern American history has seen a recession. So on that crude basis there’s about a 20% chance of recession in any given year, including 2020.

Recession. A recession is a normal part of the business cycle that generally occurs when GDP contracts for at least two quarters. A depression, on the other hand, is an extreme fall in economic activity that lasts for years, rather than just several quarters.

Why might buying a home during a recession be a good decision for some consumers? Housing prices are down. Less demand means more options for buyers. Less demand means less competition with other buyers.

House price growth typically slows or drops when the economy does poorly. This is because a recession leads to job losses and falling incomes, making people less capable of buying a home. It means the financial system has not frozen in the same way it did during the financial crash in 2008, when house prices dived.

When that happens, the bubble starts to burst. Suddenly, there’s an excess of supply compared to the demand. As a result, prices will decrease sharply to compensate for the sudden surplus, leaving those who bought during the housing bubble underwater and many struggling just to pay their mortgages.

Recessions cause an unstable environment for many financial ventures, amongst them buying into property. A recession is generally considered a bad time to buy a new house, as wages are lower and many more people will find themselves out of a job.

During a recession the opposite happens. Companies are forced to make cuts, leading to job losses, while governments either reduce spending, which affects services, or increase taxes. All of this normally leads to house prices falling.

The truth is, there’s no right or wrong time to buy or sell a property, particularly during a recession. Even more so during a recession heightened by a health pandemic. You have to consider your financial circumstances and the priorities you have either as a buyer or seller.

Typically rents go up in a recession. Fewer people buy, more people rent. This is because of job insecurity and unfavourable borrowing conditions. Extra demand in the rental market pushes up rents.

Tough Times, Interest and Inflation If you can buy during a recession and take out a fixed-rate mortgage, you can take advantage of the low mortgage rates and the lower housing prices to lock in a much lower long-term housing cost. Interest rates are usually not a factor in rental prices.

5 Things to Invest in When a Recession Hits

• Seek Out Core Sector Stocks. During a recession, you might be inclined to give up on stocks, but experts say it’s best not to flee equities completely.
• Focus on Reliable Dividend Stocks.
• Consider Buying Real Estate.
• Purchase Precious Metal Investments.
• “Invest” in Yourself.

Anything that makes buying a house cheaper will actually make rents lower, too, because more people will buy houses when houses get cheaper… those people are moving out of rentals, thus decreasing demand for rentals.

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The software compares competitors’ rental rates, current market conditions, seasonal trends, leasing velocity, lease term, vacancy rates, time of year and many other factors on a daily basis to determine a rental rate. In the busier times of year for renting apartments, these prices can change daily.

Landlords may decide to increase their rental prices in order to match market rates, to pay for property maintenance or improvements, to accommodate tax increases, or simply to increase their profits.

In most areas without rent control, there is no limit on the amount your landlord can increase the rent. But landlords cannot raise the rent at whim. The timing of a rent increase, and the way your landlord communicates it, are governed by statute in most states.

Your landlord can legally raise your rent. CoStar Group reports that the average rent increase is 3.18% each year. There are reasons (some out of his/her control) why a landlord might increase the rent for his or her apartments, including: Inflation.

Essentially, this means your landlord can only raise rents if they’re in line with the current market. The AST often has a section suggesting how much rents could increase by. The percentage is typically between 0.5 and 5%, with market rents expected to be somewhere in that bracket after a 12-month AST comes to an end.

Your landlord can increase your rent by any amount if you live with them. If you think your rent increase is too high check the price of properties in your area so you know how much your rent should be on average.

For a periodic tenancy (rolling on a week-by-week or month-by-month basis) your landlord cannot normally increase the rent more than once a year without your agreement. For a fixed-term tenancy (running for a set period) your landlord can only increase the rent if you agree.

A typical rent increase is around 3-5% annually.

To calculate the percentage increase we take the dollar difference between the original rent and the rent after the increase and compare that to the original rent. Dividing the dollar amount by the original rent provides the percentage increase.

The Maximum Fair Rent calculation is based on the existing registered rent multiplied by a figure (based on the change to the Retail Price Index from the last registration to the current registration) plus 5%, then rounded up to the next 50 pence.

How to increase your tenant’s rent

1. Option 1: sign a new tenancy agreement. Normally, rent is increased at the end of a fixed term of a tenancy.
2. Option 2: document the increase during the fixed term.
3. Option 3: mutual agreement.
4. Option 4: serve a Section 13, notice of rent increase during a periodic tenancy.