Once your current tenant has provided you with their notice that they plan to move it, you must start looking for a replacement. If you wish to continue earning a steady passive income while avoiding vacancy periods, then it’s best to start advertising the rental and looking for new tenants as soon as possible.
Typically, most prospective tenants will want to view the rental space before occupying it to determine whether or not it’s suitable for them. There can, however, be challenges to showing the property before your current tenant has moved out. That said, showing a unit that is already occupied has several advantages.
Advantages to Showing an Occupied Rental
Reduce Vacancy Period
The most notable advantage is that you’re able to reduce the amount of time your rental property remains vacant. With a continuous flow of tenants, you will be able to continue paying off the mortgage, save for retirement or meet your other financial goals. You will also be able to maximize your ROI.
Finding a new tenant without having had the unit vacant will help you avoid rental losses. Losing out on even just a few months of rent can be quite costly for the landlord. The longer the unit remains vacant the more money you will require to use to cover various costs in the unit. An example of these costs is maintenance costs and utility costs.
Offsetting Costs
You won’t have to incur the cost of utilities if you find someone to rent your unit right as the current lease ends. Just because a property unit is vacant, doesn’t mean the utility bills stop.
It becomes the landlord’s responsibility to cover any costs and there will be no rental income during that time to offset those expenses. But once you are able to find a tenant who will occupy the space then you can rely on the tenant rent to help cover these costs.
Better Idea of the Space
Another benefit to showing an occupied property is that prospects can get a better sense of how the unit can be used. If they only saw photos online or an empty unit in person they might not be able to imagine themselves living there. However, if they’re able to see that someone else made a comfortable space for themselves, the prospect may be impressed and thus want to move in.
Tips for Showing an Occupied Rental Unit
When showing an occupied space, there are a few tips that you should incorporate in order to make the process as smooth and stress-free as possible.
Inform Your Current Tenant of Your Intentions
This should be the first step before making any move on marketing the rental unit. Reach out to the tenant and inform them of your intention to start looking for a new tenant. You may also want to use this opportunity to express any expectations or requests that you may have regarding the property marketing and showing process.
Remember that the tenant may feel differently about the process. Therefore, when discussing your desire to show the unit to prospects work with the tenant to come to a mutually beneficial agreement. By doing this, you are able to forge an even stronger relationship with your tenant. The current tenant could decide to even help out in the search for a new tenant.
Use Polite Language When Making The Request
You may have to make some requests to your tenant before you begin showing prospects the space. Some of these requests may seem obvious but it’s better to state them clearly to your tenant to avoid any confusion.
You can request that your tenant tidy up their space and secure any pets that they may have when showing the unit. When making any request, remember to use polite language with your tenant and avoid making it seem like a command. People are more likely to follow through with a polite request rather than a command.
If your tenant is not able to heed the request due to the pressure of moving. You can work with them to find a compromise that works for all parties.
Provide Ample Notice
Make sure that you inform your tenant as early as possible of your intent to start showing the property. This will give you enough time to devise a schedule that works for both parties. This will also enable the tenant to organize their affairs.
Reward Compliance
Landlords can combine multiple showings or schedule one specific day in order to reduce the frequency of the showings while still achieving the goal. You should also consider making a kind gesture to the tenant for the intrusion.
It can be very beneficial for you to reward compliance, especially if you intend on having numerous showings. You can gift your tenants with a gift card to a local shop or restaurant to thank them for their compliance.
Avoid Using “For Rent” Signs
Having physical signs could encourage unannounced visitors to your tenant’s door. This could be a huge inconvenience to the tenant and also reduce the sense of security and safety that they enjoy from the rented premises. A sign can damage the good relationship that you have built with them over the years.
If you need to use the sign, remember to include words such as “By appointment only” and always include your contact information. This will greatly reduce the number of unannounced visitors to the tenant’s house.
Conclusion
From the information shared above, landlords in the Boise area can appreciate the challenges and intricacies that come with property management. If you would like help managing your units, call upon the professional and experienced property management company, Realty Management Associates!