How can I get a tenant prior to closing?

Question

If I am under contract to purchase a rental property that has no tenant, are there any strategies I can use to market the listing for rent prior to close in order to secure a renter? Can I show the listing to a prospective renter and indicate the soonest move-in date based on my close date?

Luan Oliveira · Answer

Here's what I did - as soon as the offer was accepted, I listed the property on zillow to gauge interest. There was so much interest that I had to take it down.  Then, one week from the closing date, I listed it again, but raised the rent by 20%. Worst case I knew I would have many takers at the lower price.

I ended up still having plenty of interest at the new price. I closed on Thursday afternoon and on Friday I already had people lined up to apply.

I didn't list an exact address, but put the street the property was located on. I recommend taking this route, as it will make things much easier for you!

Theresa Harris · Answer

@Stephen Brehm  You can post it a day or two prior to closing to line up showings, but until you actually close and get the keys in your hands, I would wait.  You have no way to show the home without the seller's permission and the seller is unlikely to give you the keys to show the place.

Russell Brazil · Answer

I usually include in my contracts that seller will provide access to the property on 2 agreed upon dates to show the property to prospective tenants.

John Morgan · Answer

@Stephen Brehm

I rented out two of my properties this way. I listed them on Zillow with the date of closing as first available move in date. The seller of one property let me show it to someone who desperately wanted it. Both of these properties had keys given to my new tenants just hours after closing.

Megan T. · Answer

On my most recent acquisition, I listed the property on zillow, craigslist, etc. while under contract. When tenants reached out about the property, I simply stated it would be tenant occupied until the closing date and would be available for showings after that. Toured an applicant the day we closed and then moved them in a week later

Michael Noto · Answer

@Stephen Brehm Yes, that is worked into some of the deals I am a part of as an agent from time to time. Currently working on a deal here in CT where having one of the vacant units filled prior to close is a contingency in the contract. It is not very common, but if you catch a seller at the right time they may be willing to agree to do that. If you ever go down this road make sure it is clearly written into the contract that any tenant placed needs to be approved by you, the buyer. Otherwise they could just jam anyone in there to get the house sold.

Also, I have done things the way @Russell Brazil suggested earlier in this post and that worked out well.

Cameron Tope · Answer

@Stephen Brehm I know the feeling! The best thing to do is to start marketing and pre-screening tenants. Then do a group showing the day of or after closing.

I wouldn't show the house while I didn't own it - especially if you're not a realtor.

Best of luck!

Account Closed · Answer

@Stephen Brehm

Offer subject to purchaser being granted access after acceptance for purposes of showing unit to prospective tenants, and/ or obtaining quotes for repairs, renovations with 24hr written notice to seller.

Stephen Brehm · Answer

Thank you all for the advice: Has anyone on this forum ever made securing a tenant a Contingency of an Offer to Purchase agreement (kind of like a contingency that you need to sell your home first is often made a part of a purchase agreement - not sure if something similar has been done for finding a renter)?

How can I get a tenant prior to closing?

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