Should I start advertising a rental before closing?

Question

I'll be closing on a triplex in 3 weeks and would like to start advertising the one vacant unit ASAP. Hoping to fill the vacancy by the first of Sept. I wouldn't collect application fees or anything like that until I close but would it be OK to at least get an ad out there? What are your thoughts?

Max T. · Answer

All the naysayers! Fraud, you've got to be kidding @David Faulkner.

Anything can be done with the proper permission.

Talk to the seller about it, and if they approve, go for it! I've done it before and it worked wonderfully. Instead of buying a duplex with some vacancy, I bought it with full occupancy and increased the rents!

Account Closed · Answer

@Nolan Martineau It is against the law to advertise to rent something you don't have the right to rent. You gain that right after closing. I understand your enthusiasm, but there are times when things come up at closing and the thing never closes or it gets delayed. When someone gives a landlord notice that they are moving on and then the place they are moving to doesn't close, it sets int motion a whole string of negative events. Can you say potential "lawsuits"? Personally, it's not right to do it and I wouldn't.

Kim Meredith Hampton · Answer

sorry Noland, but I must agree with Account Closed, you do not own the place! I have seen some crazy things happen and things not close, so hold on and wait until you sign on the dotted line.

David Faulkner · Answer

Fraud is not a very good REI strategy, and that is exactly what advertising a property for rent or for sale that you don't own or have the legal right to rent or sell is. Coming on a public forum to say that you are going to or have already in the past done it is an even worse idea.

Chris Purcell · Answer

@Nolan Martineau

Great question.  I have done this for every house Ive bought.  Guess how many times it worked out smoothly?

Zero

Kevin Terpening · Answer

In my purchase agreements, regardless if they are filled or not, I put verbiage around having reasonable access to show the property to potential renters.

It allows me to fill a unit if empty and I can provide a lease to the lender to show that it will be cash flowing from closing on.

I've only had one seller strike it but most are open and ok with it.

Nolan M. · Answer

Account Closed Can you point me in the right direction to find the law you are referring to? Just trying to educate myself, thx

Ralph R. · Answer

@Nolan Martineau NO! Like Account Closed said its against the law to advertise for sale or rent real estate you don't own.  If its that big of a strain on your finances to have to resort to advertising before closing you might should have waited a little while.  if the rental market is that slow wherever this property is or the unit is difficult to rent, you probably should have thought twice before buying it.  In either case is it worth it to break the law to save a few days of expenses?  RR

Ralph R. · Answer

@Nolan Martineau  check this out.      http://www.allpropertymanagement.com/propertylaw/property-management-law-in-arizona.html  RR

Should I start advertising a rental before closing?

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