Question about my PM marketing my property
I'm kind of a new landlord. I have a tenant moving out in about a month. (3bdrm house, Nashville.) I asked my property manager when she could start marketing the property for a new tenant. My assumption was that she could start showing it asap (while it is still occupied), to reduce the potential vacancy time. She told me she would start showing it when it is vacant and clean and ready. So then who knows when it will rent. It would be at least a month and likely two-three months.
Question is, is this standard? To wait until it is vacant to even start showing it or advertising it? For three months I'll be out 6k in mortgage. I don't know what is standard and if I just eat my lumps and that's how it is. Or am I being pushed around? Should I firmly tell her what to do or just let her decide and go with the flow?
Thanks for any guidance.
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#5 General Real Estate Investing Contributor
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Generally we do not show properties that are occupied and not ready to go. Nor do we show to candidates who have not been prescreened. The last thing you want is to rent a property that is not vacant then you are into hotels etc. I'd be inclined to follow your PM's guidance in this instance but stay on top of things.
Quote from @Bjorn Ahlblad:
Generally we do not show properties that are occupied and not ready to go. Nor do we show to candidates who have not been prescreened. The last thing you want is to rent a property that is not vacant then you are into hotels etc. I'd be inclined to follow your PM's guidance in this instance but stay on top of things.
Ok I understand, thanks very much.
What you're talking about is pre-leasing which I generally don't see property managers do because it's 1) a nuisance for the current tenant, 2) can be difficult to schedule and 3) it's tough to know exactly when the unit will be ready and most people want to move in in about 2 weeks or less. So it doesn't surprise me that your PM doesn't do preleasing.
There are exceptions though. Student rentals and commercial are almost always pre-leased. But we don't with anything else (although we've talked about the possibility of doing it and may try it in the future).
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@Christopher Davis here's some challenges to consider:
1) Will current tenant cooperate with showings?
- Many don't want strangers in their home while packing
2) What condition is the home in for showings?
- It may need some TLC, may look like a disaster with current tenant packing and more - which may lead to no applications or lowball offers. Why would a PMC want to waste their time doing this?
3) How much are you willing to bet on the current tenant moving out on time?
- Let's say current tenant's moving plans are delayed a week, but your PMC has signed a lease with a new tenant that has to move in. Since current tenant still there, owner will have to pay for new tenant's housing in a hotel plus temp storage of their belongings, etc. Could get REAL messy!
@Christopher Davis my property manager does an inspection about 30 days before lease end, verifies timeline with current tenant and potential turnover issues. If questionable or major items needed, we wait. They’ll advertise early and have turned it over in days before when it’s just cleaning and minor maintenance, but they don’t show until vacant so we plan on at least a month.
I manage my own rentals that are in Lansing, MI. I have in all of my lease's that I am allowed to show the home to prospective tenants while the current tenants are still there.
If my current tenants don't want to show the property. I pay a neighbor to show it for me (150.00) and tell them this is a way for you to screen your new neighbors. They are always on board.
I tell the new tenant that once the current tenants are out. I will have the place cleaned and all repairs done. They usually move in 3 to 5 days after tenant is out. the date of move in is the date that the lease starts.
I am not waiting two to three months to get me rentals leased out.