Our tenants notified us that they cannot afford the rent (unit is already under market rent)and want to move out. They are paying the early termination fee and said to be moved out by Dec. 11th. We want to paint and put new floors so we can raise the rent again to about 950 for a 4bd 2 bath. Not knowing the full scope of work needed yet to turn over unit, do I start marketing/showing the unit right away for a jan move in...?? Or do I we finish the work then take pics and market it??
advertise advertise advertise why wait without a line in the water you can not catch a fish
I would start now UNLESS the condition was so bad it would scare away potential renters.
Do an inspection and see for yourself.
I would wait until they are out, (sometime furniture hide needed repairs) and inspect. How can you promise to have it ready when you don't even know what it needs. But that's just me.
How are you with Photoshop, or have any friends with photoshop? If its easy enough and the pictures look good, why not chop in what the floors will look like. I'd let people know it's a rendering and what the "new" flooring will look like.
You might luck out and find someone looking in advance and needs that move in date. Just make sure if you make promises that there will be no hiccups in the repairs.
I would perhaps put a "coming soon" ad out, but I would not start showing the property until it is actually vacant and ready to rent out. Too many times, people try to avoid vacancies by moving someone in the day the present tenant vacates only to find out the tenant doesn't move out in time, there is more damage or cleaning than they first thought, etc. It also tends to start arguments with the current tenant who doesn't want the hassle of letting people in all the time to see the place.
Correct me if I’m wrong, but I’d start advertising immediately because as soon as you start advertising then your repairs or improvements can be written off as opex and capex appropriately. If the property isn’t producing income once they move out and isn’t advertised, then I’m not sure you can per the tax code - or at least not to the same extent. Also depends whether you own it or an entity I’m sure.
I’d estimate how long the repairs will take you, begin advertising immediately stating the improvements that are actively being made, and just state the first available move in date. I’d show applicants the unit while you do the work. To my experience they don’t care and I think some actually like to see it’s getting improved. I wouldn’t do work while old tenants are there, and I wouldn’t recommend getting new tenants in right away knowing it needs work.
I would wait until the tenants are out and then advertise while it's being renovated but it really depends on your market and how easily you can find a new tenant.
Definitely raise your rent to market value - or very close to it. Renting below market means you end up with below-market tenants. I would also consider increasing your screening standards so you don't end up with tenants that can barely afford the rent on a below-market house.
Thank you everyone who replied I absolutely appreciate the responses. @Max T. yeh we figured that would be the first step and since the furniture will be there still hopefully i can photo shop it, which is a great idea @Eric Burgh . I want to advertise before they move out so the "coming soon" ad i think would be the best route @Nicole W. and @Nathan G. we inherited the tenants and raised the rent 45 more dollar a month, so apparently the cant afford that anymore and we just signed the lease in Sept.
You want more rent then it may be right time to redo bath, kitchen and flooring since you have the time. Most renters do not start looking until after New Year or Superbowl game in West Coast. I personally prefer to show when all remodeling is done. My preference.
I would post the following on the FB swip swop page for the town it is in
Potential 3BR 3 BA newly renovated house In the xyz area. Rent will be x dollars
Let people contact you and tell them the address
If they are still interested after they drive by they should message you back
When they message you back you let them know you will notify them when it is ready To be shown
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