Advice Pre-Leasing Tenant 60 Days Out?

Question

Hey,

My primary house is with the home builder Lennar which I am going to rent it out to and I want to purchase a second house with Lennar again. Lennar will not allow me and approve me for a conventional home loan for the second home until I have a tenant lease agreement signed and money deposited. I need time to pack up and move my furniture and move into some temporary living arrangement until I find a second Lennar house who's numbers work for me.

My question is can I market my rental property ad 60 days out for example so potential tenants can apply to my rental and what advice do you have for me in doing this transaction/situation?

60 days is a good run way for me in my opinion but I am open to suggestions.

Juan David Maldonado · Answer

@Adam Bartomeo is the last quarter of the year a factor in finding a tenant? The holiday months basically

Adam Bartomeo · Answer

@Juan David Maldonado Yes but it depends on your location the colder the winter the more imperative it is to find a tenant ASAP. In Florida, we see a spike in early November but then it dies off until January and it picks up again. In most areas of the country winter will be dead until spring.

Bill B. · Answer

Depends on your market. You forgot to put it in your profile and your post. If you do that local experts can weigh in. It’s maybe 10-15% worse in Vegas, so not worth waiting. (Losing 8.5% per month of vacancy/non-rental.) But I can see it being 30% worse in markets where it’s sub zero for weeks. (MN/WI/ND). It’s like the idea that to sell in the spring, when everyone else is selling and you have more competition. Versus renting your property out when there might only be 20-30% as much competition. Especially true with rentals. When someone has to move, they have to move. Plus if someone’s lease expires in the winter or during “the holidays”.  How likely are they going to be to want to go looking for a new place in a year? (In winter/during the holidays).

Juan David Maldonado · Answer

@Bill B. Good input. Since we are entering the last months of the year basically the Holiday months October to January. Is that time frame of the year a good time frame to find a tenant?

Adam Bartomeo · Answer

Our average tenant wants to move in within 2 - 4 weeks. It will be difficult to find a tenant that is looking 60 days in advance. Most tenants live week by week.

Bill B. · Answer

I don’t think you’re going to find any tenants willing to lock in a 60 day move in date. Most start looking the last month of their current lease. So they need somewhere to live in 3-4 weeks or less.

Since you plan on living somewhere else in between. Why not advertise it for immediate move in and start moving your stuff to this alternative place?

Juan David Maldonado · Answer

@James Derry

What do you mean 4 month useful campaign? What other advice do you have for me in this situation?

James Derry · Answer

@Juan David Maldonado, by useful, I mean that the property manager for this venture believed that any longer than 4 months then the prospects would not be considered active and are very likely to not commit or change their minds on the property.  The new construction lease ups are looking for 45- 90 days as a sweet spot to sign someone up.  However they started at 4 months and offered a %discount for for a period of time for tenants to wait and commit early.  They also offered longer terms of 18 or 24 months as well. Like any sale, the biggest post is to get the commitment and deposit.

Arman Ahmed · Answer

@Juan David Maldonado

Hey Juan, 60 days out is a smart runway for marketing your rental, especially if you want to line up tenants before your next purchase. Start by listing now with clear move-in dates, highlighting features and any upgrades. Screening early applicants helps you secure someone reliable and gives you time to handle the move. I’d also recommend being flexible with lease start dates in case your timing shifts — it can save you stress and keep things smooth

James Derry · Answer

That shouldn't be a problem if your prospects know the date.  The longest "useful" campaign I have seen for some of the larger multi family projects has been 4 months.  That was new construction.