Investor · Dallas, TX · Member since 2016 · 1 post · 0 votes
I was informed by my property manager that the standard time to find a new tenant would be 45 to 60 days. This seemed very long to me, so I wanted to see what other peoples' experiences have been. How long does it typically take you to fill a vacant property? Does your property manager do the leasing, or do you use a different leasing company? How much do you pay for leasing?
For context, most of my properties are in Dallas (Uptown/Oak lawn). Also have some in San Antonio. These are 1 bedroom condos. I hire full-service property managers who do everything from maintenance to leasing.
I'm a property manager from SoCal so my experience may differ significantly from yours. I typically see our rentals rented out in 15 to 30 days, with the average being closer to 30 days due to the notice requirements that new tenants must satisfy with their previous residences. A tenant that loves a home and gives their 30 notice to their current landlord today, for example, would not be ready to move in until 30 days from now. However, the rental market that we are in in SoCal is very strong right now with high demands in my area. I wouldn't be surprised to see vacancies of 45-60 days for areas that have lower demands.
As for leasing fees, the industry standard in our area is 1/2 of first month's lease and a flat rate management fee for month-to-month management. Companies that charge percentages in my area typically do not charge leasing fees due to their higher monthly fees.
We have rentals in several different markets and haven't really seen any industry wide standards regarding vacancy fill times and lease up fees. Vacancy times can depend a lot on things specific to the particular market you are in. For example, the time of year can be a factor, especially when you couple that with weather in the market. 45-60 days does sound high to me, but could be an indicator that either there aren't a lot of renters in that area or there is an over supply of rental properties for prospective tenants to choose from. If the latter is the case, anything you can do to make your rental stand out will help.
As far as leasing, if your property is managed by a PM, they will usually handle the leasing. In our experience, lease up fees vary between locations, but tend to similar within a location (for example, in Houston, a full month's rent seems to be the going rate). Between half a month's rent and a full month's rent seem to be common though.
We fill our rentals in Houston in about 30 days or less. This is common for Houston. It's a balance. If someone is filling their vacancy in a week or two consistently then they probably are not listing at market rent.