Rental Property Investor · Member since 2022 · 54 posts · 17 votes
I own a lot of multi units with high turnover. My current PM company takes the first months rent for commission on new tenants. But the agent is also refusing to show the property while it's still occupied when a tenant is moving out. Thus if it takes 1 month to find a new tenant..then we are out 2 months rent for the year.
I'm just wondering if this is common practice or not?
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
3y
@Terry Landon, I manage my own properties and it is EXTREMELY rare that I show a rental until its vacant and has been prepped to rent again.
It is difficult to show an occupied rental. Tenants may refuse entry. Tenants may be there and bad mouth the property. Tenants are packing, so the property doesn't present as well. Unless I have an excellent tenant who is open to it, I don't even consider it.
I'm not saying it can't be done, but it isn't simple and easy.
I average 4-6 weeks for a turnover. So, if you are taking 1 month (4 weeks), then its only 1-2 weeks difference in vacancy between the approaches.
If you are having turnover EVERY year, THAT is what I would focus on as the issue to address. I budget for 5% vacancy with the intent to do BETTER than that. To me that means I want tenants to stay AT LEAST 2 years on average. That is the minimum. I think my average might be closer to double that at this point. Sometimes charging LESS rent makes you MORE money simply by reducing turnover!
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
3y
Most of the management companies in my market do not show units until the prior resident moves out. It's one of the biggest costs of using a 3rd party PM. When I self-managed my properties, I showed units in advance and my turnovers were often under a week...many times in days.
I own a lot of multi units with high turnover. My current PM company takes the first months rent for commission on new tenants. But the agent is also refusing to show the property while it's still occupied when a tenant is moving out. Thus if it takes 1 month to find a new tenant..then we are out 2 months rent for the year.
I'm just wondering if this is common practice or not?
It is possible to show with a tenant most do not like to. Why so much turnover. I know all the PM cos out there, I am more than happy to help you find the right one,