Where to Find Tenants

I am a newbie at residential investing. I was looking at 2 townhomes that have been foreclosed. They were builder foreclosures and are almost complete (probably 90%). I was considering purchasing them finishing them out and then leasing them. I am curious as to where you all think the best places to find tenants is? Also, how do you go about locating a tenant prior to purchasing and closing on the property. I have heard that a lot of lenders want you to have the tenant lined up prior to the purchase.

Edited: 06/26/2010 at 08:59AM

Tom K

Real Estate Investor · Mountain View, California

237 posts
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Icon_minipost Jul 16 '09, 07:53 AM

Best place - craigslist.

Other avenues: sign out front, newspaper ad, signs in stores/kiosks/bulletin boards/etc, mls, other websites.

I'm sure there are plenty of other places to advertise but if you have a decent property priced right, you shouldn't have too much trouble getting it rented out. Good luck.

Edited: 06/26/2010 at 08:59AM

Scott M.

Real Estate Investor · Rochester Hills, Michigan

632 posts
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Icon_minipost Jul 16 '09, 11:21 AM

Sings on the property and CL are the two best sources I have found.

Signs are the #1 source for about 2 weeks - then all those who drive by think there is something wrong and the calls drop off a lot - so that is where CL comes in - or if your signs keep walking.

As for renting the place - you just get access to it from the realtor or owner and show it - if they want the deal done and you need to have a tenant in place then they will work with you as they want the deal done.

Edited: 06/26/2010 at 08:59AM

James Hiddle

Real Estate Investor · Altus, Oklahoma

2515 posts
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Icon_minipost Jul 16 '09, 12:18 PM

Originally posted by Scott M.

Sings on the property

Yes because nothing impresses tenants like someone singing on a property :mrgreen: :mrgreen:

Edited: 06/26/2010 at 09:00AM

Charles Lucenay

Commercial Real Estate Agent · Houston, Texas

32 posts
90 Influence

Icon_minipost Jul 16 '09, 10:41 PM

Those are good suggestions. Thanks!

Edited: 06/26/2010 at 09:00AM

NC Mark

Real Estate Investor · North Carolina

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Icon_minipost Jul 16 '09, 11:42 PM

There are often city-specific rental sites that will let you advertize for free. Same with weekly shopping papers. Sometimes local businesses have bulletin boards where you can post a flier.

As you get more rentals you may consider creating your own website. You can post lots of info on your site with pictures and downloadable forms.

Edited: 06/26/2010 at 09:00AM

Eric Wang

Real Estate Investor · San Jose, California

228 posts
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Icon_minipost Jul 17 '09, 12:56 AM

I use both.. I mainly have the sign for people who don't have computers, but most of the time, there nothing but a waste of my time. Both attracts different type of people. I have more success with CL since people know what they want and has more detail information and pictures of the property. It's hard to find a tenant without giving them a tour of the property. Most tenants want to be able to checkout property before signing a lease.

Edited: 06/26/2010 at 09:00AM

Joey Budka

Private Money Lender · San Jose, California

122 posts
1081 Influence
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Icon_minipost Aug 11 '09, 07:03 AM

CL ads are the most effective and cost efficient way of getting tenants into properties. It also depends on your area. College towns require different forms of advertising than that of low-income neighborhoods. Its all about understanding the demographics.

Best of luck!

Edited: 06/26/2010 at 09:19AM