Why don't you advertise 'FOR RENT' 6+ months in advance?
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
10yTo me it seems unreasonable. What if you have good tenants that tell you 6 months out they plan on buying a house - you advertise and find someone willing to sign a lease that far out. 2 months from the end of the lease, your good tenants tell you that they have decided they would like to stay another year to save up more money. Now you have to let them go and hope the new tenants are as good as the old ones. How many tenants will provide first month + deposit (and maybe last month as well) 6 months in advance? Did the place you rented out give you that money that far in advance? If not, and you send good tenants packing and the new tenants are no-shows, now you have nothing.
I don't begin advertising availability until a few weeks before a unit will become vacant, at earliest. But all of my units are, by design, in high desirable areas and are easy to rent. So long-term vacancy is not a concern that I worry about.
Skyline Properties
22 Replies
- Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes10y
I only advertise in the 30 day out window. We have plenty of demand around here and do not seem to have trouble filling the unit within that time frame. Also I have seen my current renters decide they want to stay longer sometimes.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes10y
To me it seems unreasonable. What if you have good tenants that tell you 6 months out they plan on buying a house - you advertise and find someone willing to sign a lease that far out. 2 months from the end of the lease, your good tenants tell you that they have decided they would like to stay another year to save up more money. Now you have to let them go and hope the new tenants are as good as the old ones. How many tenants will provide first month + deposit (and maybe last month as well) 6 months in advance? Did the place you rented out give you that money that far in advance? If not, and you send good tenants packing and the new tenants are no-shows, now you have nothing.
I don't begin advertising availability until a few weeks before a unit will become vacant, at earliest. But all of my units are, by design, in high desirable areas and are easy to rent. So long-term vacancy is not a concern that I worry about.
Skyline Properties - Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes10y
@Max James First, I don't often know a place will be available six months in advance. Imagine if you have lots of units, this could create a lot of unnecessary work. Second, most people don't know they are moving six months in advance. And if they do they are not planning that far out.
I suppose it could be useful to get a pulse of demand, but you could do that anytime, not just six months in advance.
- Investor · Cincinnati, OH · Member since 2015 · 229 posts · 50 votes10y
Makes sense to wait in order for current renters to make up their mind.
With the demand of student housing for UC and Xaiver, it seems like a huge advantage to advertise your units months in advance of the lease expiring. When I was in college at Ohio University in Athens, we signed leases 12 months in advance of moving into the house.
- Attorney · Attleboro, MA · Member since 2015 · 412 posts · 165 votes10y
I can think of a couple of reasons.
If you have current tenants you may want to offer to renew with them (whether or not you plan on increasing the rent).
If they are not renewing, you may not be able to guaranty the apartment will be empty if they can not find a place to move to and you may have to evict them and therefore the place is not available yet you already have a new lease ready to go. That can cause you big problems.
To some degree it depends on what you are renting. I have a client that rents to a lot of students so his leases usually run August to July. New students start looking as soon as they are accepted to the local universities so he may sign some up early or put them on a list to contact when he confirms the seniors do not wish to renew after graduation.
- Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes10y
Student housing is a whole different animal than what we were talking about above. Listen to the BP podcast on student housing called "The Riches are in the Nitches"
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes10y
Originally posted by @Max James:
Makes sense to wait in order for current renters to make up their mind.
With the demand of student housing for UC and Xaiver, it seems like a huge advantage to advertise your units months in advance of the lease expiring. When I was in college at Ohio University in Athens, we signed leases 12 months in advance of moving into the house.
If that's your market, then you may have an anomaly that makes it make sense. You can't base what you do or don't do on what everyone else does - if what you do makes sense, do it. I rent SFH to middle-income individuals and small families, and these people revolve around jobs and school years. I haven't had anyone ask to sign anything longer than a year, so I can't see anyone signing a year lease 6 months in advance in my market.
Skyline Properties - Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes10y
I personally advertise as soon as i "know" there is going to be a vacancy. That has worked great for me but it really matters on your area. We are in military areas where people get order 6 months in advance. So it works great for those leaving and those coming in. We do have break lease language that protects people from changing their mind.
- Investor · Juneau, AK · Member since 2015 · 980 posts · 741 votes10y
Max, along with the above.. I advertise a unit when available ("available now") as I am of the sentiment that "so much depends" (a William Carlos Williams quote for the Modern American Poetry crowd)..
That is, it depends if there will be an actual move out (plans change, and yes, I have tenants that were planning to move or buy a house now for years, some 5 years!); if the unit is rent ready (repairs, updates, smells, maintenance, etc); if I can show it (I don't do sight unseen rentals from experience as too much can go awry, but landlords may vary here); and I am not a fan of showing occupied units (another topic I could go on about); plus the potential tenant may have an entire change of plans six months out (think job change, marry, buy a home, fall ill, join a commune, vanish etc)...
In fact, I specifically want people ready to rent (like pronto) when I have an open unit as this separates the looky loos from the folks with check in hand who are truly in the market right now for what I have available.... I like a ready market not a futures market for rentals (and don't get me started about the options and holding money mischief I have heard of)..
Best of luck!
- Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes10y
Most of the tenants I deal with are lucky if they remembered to get dressed that morning. They're not going to plan out a move 6 months ahead. In fact 90% of my showings are at the last few days of the month dealing with people who want to move on the 1st.
- Investor · Cincinnati, OH · Member since 2015 · 229 posts · 50 votes10y
Originally posted by @JD Martin:
To me it seems unreasonable. What if you have good tenants that tell you 6 months out they plan on buying a house - you advertise and find someone willing to sign a lease that far out. 2 months from the end of the lease, your good tenants tell you that they have decided they would like to stay another year to save up more money. Now you have to let them go and hope the new tenants are as good as the old ones. How many tenants will provide first month + deposit (and maybe last month as well) 6 months in advance? Did the place you rented out give you that money that far in advance? If not, and you send good tenants packing and the new tenants are no-shows, now you have nothing.
I don't begin advertising availability until a few weeks before a unit will become vacant, at earliest. But all of my units are, by design, in high desirable areas and are easy to rent. So long-term vacancy is not a concern that I worry about.
The unit I am referring to is in what I would think is the top three most sought after areas in Cincinnati. I did receive security deposit, but did not request first months rent. With the scenario you pointed out above, I do agree, it seems a bit unreasonable. I guess it really will depend on resident-to-resident situations. I like to provide future customers with the idea they have locked down their new home well in advance of when they want to move into it. This eliminates stress on their end and mine as well. I can also time up the amount of days vacant much better.
- Investor · Cincinnati, OH · Member since 2015 · 229 posts · 50 votes10y
Originally posted by @Larry Turowski:
@Max James First, I don't often know a place will be available six months in advance. Imagine if you have lots of units, this could create a lot of unnecessary work. Second, most people don't know they are moving six months in advance. And if they do they are not planning that far out.
I suppose it could be useful to get a pulse of demand, but you could do that anytime, not just six months in advance.
Hey Larry, good point on the fact it's going to create some unnecessary work if you have a large amount of units. Could this be worked into your PM business model though? To maximize revenue? If your objective of renting out an apartment is to get the highest rent possible within reason of the comparable market, it seems like it would be worth it to have a system in place to make the extra effort.
As for planning that far out, I think some people actually do plan ahead this far in advance. Could it be possible this would also attract a higher quality resident? Could it be that someone who has the mindset to look this far out would be someone who has their life together and be very organized. Just my 2 cents!
- Investor · Mobile, AL · Member since 2015 · 66 posts · 21 votes10y
Originally posted by @Max James:
Is there a good reason why people don't advertise and market their units for rent well in advance of when it's time to turn it over? I had great luck getting a leased signed in February for a July move in date. I do not understand why people wait till 30-60 days to start advertising when they know the lease is going to end well in advance of that. This way, you can also advertise for higher rent you think is within reason and if nobody bites, then drop it some.
How far in advance do you advertise and hope to get a lease signed?
Why? Because I can not guarauntee the unit will be available and fit for living in 6 months ... And I would certainly not force out a current tenant or ask a potential tenant to wait for 6 months - I certainly would not accept a security deposit 6 months in advance
- Investor · Cincinnati, OH · Member since 2015 · 229 posts · 50 votes10y
Originally posted by @Elizabeth Colegrove:
I personally advertise as soon as i "know" there is going to be a vacancy. That has worked great for me but it really matters on your area. We are in military areas where people get order 6 months in advance. So it works great for those leaving and those coming in. We do have break lease language that protects people from changing their mind.
Nice example Elizabeth! What do you mean by you have break lease language? Is that for current residents or future ones?
- 10yMike CumbieBusiness MemberREALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
@Virginia H. brings up an excellent point. If you currently have it rented and you happen to know they are moving out in 6 months so you plan on renting it out, what if they decide not to leave and you have to start eviction procedures? what if they rip out all the plumbing? What if they destroy the floors?
Not only do you deal with those issues but now you have a contract for an apartment that you are obligated to provide. It is going to cost you even more to "make them whole"
- Investor · Cincinnati, OH · Member since 2015 · 229 posts · 50 votes10y
Originally posted by @Michael Boyer:
Max, along with the above.. I advertise a unit when available ("available now") as I am of the sentiment that "so much depends" (a William Carlos Williams quote for the Modern American Poetry crowd)..
That is, it depends if there will be an actual move out (plans change, and yes, I have tenants that were planning to move or buy a house now for years, some 5 years!); if the unit is rent ready (repairs, updates, smells, maintenance, etc); if I can show it (I don't do sight unseen rentals from experience as too much can go awry, but landlords may vary here); and I am not a fan of showing occupied units (another topic I could go on about); plus the potential tenant may have an entire change of plans six months out (think job change, marry, buy a home, fall ill, join a commune, vanish etc)...
In fact, I specifically want people ready to rent (like pronto) when I have an open unit as this separates the looky loos from the folks with check in hand who are truly in the market right now for what I have available.... I like a ready market not a futures market for rentals (and don't get me started about the options and holding money mischief I have heard of)..
Best of luck!
Hahaha nice input Michael! You made great points and examples. Like we mentioned earlier, the Looky Loo's will undeniably add in extra work (I experienced that). Showing occupied vs unoccupied units is definitely a good one for debate. In half of my duplex the residents have the place immaculate... It looks like something from HGTV.. The other, however, is a different story. I would be proud to show the HGTV unit, but the other one, not so much. Could be a deterrent for future residents, guess we will wait and find out!
- Investor · Cincinnati, OH · Member since 2015 · 229 posts · 50 votes10y
Originally posted by @Mike Cumbie:
@Virginia H. brings up an excellent point. If you currently have it rented and you happen to know they are moving out in 6 months so you plan on renting it out, what if they decide not to leave and you have to start eviction procedures? what if they rip out all the plumbing? What if they destroy the floors?
Not only do you deal with those issues but now you have a contract for an apartment that you are obligated to provide. It is going to cost you even more to "make them whole"
In regards to forcing a current tenant to make a decision or asking a future client to sign a lease, you could be in a sticky situation. I think it would only make sense to first ask the current tenant what they are planning on doing when their lease expires. This is how I handled the last one. The resident I had was moving out of state so we knew well in advance of the plans. I can't imagine there are any legal issues with accepting security deposits that far in advance.
As far as the evictions go, this is definitely something you would be risking. However, isn't that always a risk no matter what the expiration of a lease is? If the current resident doesn't want to move, it doesn't matter if you started advertising 30 days or 300 days out. The only difference would be if you were to start advertising once the apt was actually empty. That just seems like a waste of money and also put yourself in a stressful couple of days to get all your ducks in a row.
- 10yMike CumbieBusiness MemberREALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
I understand your point @Max James,
However if I was moving to an area in 6 months. And I looked for an apartment and found one that fit all my criteria (Close to work, good schools, had a pretty deck, walking distance to bus route, ground floor, laundry on site) and the person said it's yours on June 1st. Give me X number of dollars sign this we are locked in. I then get my work transfer, pack up the kids and have the movers all loaded up with a plan on showing up on June first to get the keys. We pull up to the door and there is a tenant in there, workers carrying pipes in etc we are going to have a problem. Most likely one of those problems that involve lawyers and judges who already generally dislike landlords. I can see where breach of contract and emergency housing and moving expenses and all sorts of things would add up on a unit you are already losing money on working on an eviction. Now you just lost a couple extra months (plus advertising, plus waiting till it is filled again).
Personally I don't believe in advertising until it's ready or at least vacant and planned for repairs/paint (or I suppose if I had a building I had something comparable I could give up at that time) but each person has to judge their own risk.
- Investor · Cincinnati, OH · Member since 2015 · 229 posts · 50 votes10y
@Mike Cumbie great points. It would be a big issue if you had to deny your new resident the option of moving into their home they already paid for 6 months ago. Is there anything in your lease you could include that would protect you from this? Which could apply to any situation where you can't get a tenant evicted. Have a clause in the lease which states if the tenant does not leave when the lease expires, they are responsible for all expenses incurred along with providing new residents with temporary housing, etc.
- Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes10y
Originally posted by @Max James:
Originally posted by @Elizabeth Colegrove:
I personally advertise as soon as i "know" there is going to be a vacancy. That has worked great for me but it really matters on your area. We are in military areas where people get order 6 months in advance. So it works great for those leaving and those coming in. We do have break lease language that protects people from changing their mind.
Nice example Elizabeth! What do you mean by you have break lease language? Is that for current residents or future ones?
I have found that people will sign leases and than get cold feet after signing the lease. Therefore to prevent this issue I have create a break lease addendum. Therefore its not "lets talk about it", its pretty simple what their expectations and legal obligations will be.
- Contractor · North Potomac, MD · Member since 2012 · 50 posts · 11 votes10y
I am looking for some smaller student housing deals myself in my area. I think it is definelty a great idea to market your upcoming semesters. My son is at UMD and I am looking now for a fall 2016 property. If I wasn't looking to buy, I would be looking now to find a rental as from what he tells me, all the good places are gone early.
- Real Estate Agent · Austin, TX · Member since 2015 · 181 posts · 75 votes10y
We don't usually know if a tenant plans to renew or terminate at lease end. In the case we do, we will market far into the future. In some apartment buildings near the University of Texas, we see a year out because housing inventory is so limited and students generally know their length of stay.
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