Saint Paul, MN · Member since 2016 · 31 posts · 20 votes
I'm purchasing a property, it is vacant duplex, and closing date is end of May. Obviously, the goal is to get tenants in asap. Until I close on the house, I'm assuming I can't do anything because the house isn't really mine to market or show to applicants.
If the seller is willing you could work with them to find tenants now assuming the deal is finalised.
You provide the lease, do all the screening etc. all he has to do is allow you the right to proceed and accuse to the property. If he does not agree you can not start till after the closing date.
One or two months vacancy should have been built into your financing. Do not rush to screen tenants. A vacancy is far better than a eviction. Make sure you put all tenants on M2M leases to allow you to assess if you want to keep them and allow you to remain in control of the property.
Once you close, and it's then legally yours, I would start advertising immediately after closing. It all depends on your tenant pool, but from my experience, most people want to move within a month. Make sure you take really good pictures, with lots of natural light! It should be a quick process, but make sure you screen and find the right person!
If the seller is willing you could work with them to find tenants now assuming the deal is finalised.
You provide the lease, do all the screening etc. all he has to do is allow you the right to proceed and accuse to the property. If he does not agree you can not start till after the closing date.
One or two months vacancy should have been built into your financing. Do not rush to screen tenants. A vacancy is far better than a eviction. Make sure you put all tenants on M2M leases to allow you to assess if you want to keep them and allow you to remain in control of the property.
There is nothing illegal in marketing tenancy in advance of your purchase.
I would begin your marketing now.
(Ad Copy)
Soon To Be Available
Reservations Being Taken
Approximate Move In (Month, Day, Year)
Your unit rental description
(Call Your Name Today)
XXX-XXX-XXXX
I would encourage you to develop a large database of other investors, who know who you are, with rentals in your area to provide a tenant exchange for qualified applicants.
I've been there before. The last duplex I purchased, I already had a tenant lined up for 1 side of it before we had even closed (other side still needed rehabbing). We did, however, wait until we closed before signing lease & taking deposit... just in case financing or something fell through and we couldn't close.
If it is vacant, most sellers probably aren't going to mind a bit if you ask permission to advertise and show it. Just talk to them.
Two important caveats:
1 - Do make sure you disclose to potential tenants the situation (ie: you're under contract, still waiting to close, have seller's permission to show). Also probably want to check with local laws & regs just to make sure you're OK there... it shouldn't matter as long as you disclose the situation, but who knows... there are some crazy regulations out there in regards to landlord/tenant law.
2 - I would only try this if the property is actually ready to lease (without further rehab/work). No way would I want to fix a unit up before I had closed on it... too much chance that the contract could fall through and then I'm out my time & money.
@Jacob Johnson I know my realtor always writes a provision into the contracts saying something along the lines of "buyer has the right to market any units that become vacant during escrow". It's more elegant than that but it's not in the standard language. She's written it in every time. It doesn't mean that we have keys but we can advertise, solicit, pre-qualify, etc. Once the unit is vacant it's usually okay (with permission) to show.