List For Rent Before Renovation?

Question

I am closing on a multifamily property next month, i am planning on living in one of the units during the month of June to do an extensive rehab on the unit. I would like to lease the unit to new tenants starting July 1st.

I am wondering when i should plan to market the property for rent - I wont have the renovations complete to show the property until about mid-June, and this would be a very quick turnaround to find a tenant by July 1st. Obviously, i would like to minimize the vacancy as much as i can. If anyone has encountered this situation or has any tips please let me know!

Tracy Minick · Answer

You should advertise as soon as you close. You exterior photos and update with new interior photos as you progress.

Offer an open house for 1 or 2 hours per week to allow people to see the lay out!

Jason D. · Answer

@AJ Smith I would not list it until very near completion. "Extensive rehab" sounds like more than a 6 week job, so to list for rent and then go over time could cost you putting tenants up in temporary housing.

On top of that, most people cant see beyond what is there, so showing them an unfinished unit could result in either lower rent, or few applicants

Bryan Blankenship · Answer

@AJ Smith We typically advertise units for rent no more than 5-7 days before they're completely finished. That helps mitigate frustrations from prospective new tenants if there are delays in the renovations. When we advertise it, we always make notes about how it's still under construction, but include final beds/baths, etc, photos, and rent amount.

By the time you weed through your interested applicants and line up showings, you should be in the final days of your punchlist work. You can get a lease signed and a move-in date lined up within 3-5 days of work completion that way.

If you advertise too early, people go elsewhere. If you wait any longer than that, your unit may sit empty for a week or more. Good luck!

Susan Freitas · Answer

Total newbie here - perhaps you could create a Storyboard showing materials and fixtures that will be used in each area that you can show to prospective tenants to give them an idea of what it will look like when done?  I did this for the rental we are closing on this week - mostly so I could visualize it myself but I figure if we start to show the property early, we could share it with prospective tenants or have print outs in each of the rooms for people to see.

Dennis Maynard · Answer

You can post, just remember that images sell.  So if you do, update your rental posts regularly with images that show the upgrades and progress being made.

Frank Wong · Answer

I would wait until you are finished. You post an ad the prospective tenant would like to see it within 48hrs.  You can't show them the unit and you should not show them a unit under construction.  Unless you have a property in a must-have location those leads will be gone.

List For Rent Before Renovation?

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