How to get tenant leads for SFR's

Question

Hey BP,

When looking to BRRRR an SFR, at what point should you start looking for tenants for the property (assuming you didn't inherent any)? Also, what are peoples strategies for finding tenants? Lastly, has anyone has a situation where they couldn't find a tenant right off the bat? What could you do in that situation?

Thanks in advance!

Brian Schmidt · Answer

@Bob Woelfel Thanks for your insight Bob! I was thinking the same thing that if the product is nice enough and in the right price range it should attract the tenants I'm looking for. I didn't think about how signs would advertise vacancy; a great thought that I agree with and won't be doing. Thanks again!

Bob Woelfel · Answer

@Brian Schmidt...when we do a renovation/BRRR we typically start looking for a tenant with about 2 weeks left in the job.  Basically by that point everything has probably been painted, cabinets are in and flooring may even be done.  What you want to have is enough completed that it doesn't look like a total construction site when you take pictures or bring people through.  You want to have it picked up as much as you can when you take photos as well.  That way when people come through they can see the quality of work that has been done and actually picture themselves living there.  They won't be able to do this with stuff all over the place.  I also have a direct and honest conversation with them over the phone before we show it that we are not done with the job and I point out all of the things we are still going to do to finish up.  The tenants you want are the ones who are very complimentary to the work that has already been done and are genuinely excited about living in the space because of how nice it is.  We advertise mostly on Zillow and the other connecting sites and this is how we get the majority of our leads.  I don't put signs in the yard as you get a lot of tire kickers calling with no idea on how much rent you will charge.  I also dont like to advertise that I have a vacant property:).  Typically, we will have a lease signed with a tenant before we are finished with the job and that allows us the time period before they move in to finish up.  If your renovation is good and the price is right you should not have a problem finding someone who wants it.  We always hear that our rental is one of if not the nicest they have seen in their price range.  Best of luck.

Justin Larese · Answer

If you have a date deadline where your rental will be available you can advertise for that start month to begin leads. Advertise for the tenant you are desiring. If it's students near a college you can put an ad in their campus off campus rental site, leave flyers at dorms. Same for military bases but is a bit more thorough to complete. If you have a rental and it isn't being filled revist your neighborhood to see what else is out there and what their comps are for tenants and adjust accordingly. You may have your rental priced higher than what people are willing to pay. Maybe Toss in covering water sewage etc.