Getting Tenants before Closing

[Lois Ginter]

Hi All - My first BP post.

I will be closing on my first properties in Illinois in February 2016.  There is one vacant unit that can be rented immediately.  Can I start advertising now, or do I need to wait until I close?  I have all of my financing approved and inspections done.  

I am planning on waiting until the close to sign the lease agreement.  

[Mike Makkar]

@Lois Ginter, I do this all the time. Allows me to minimize the vacant days. However, I disclose to the tenant up front that the house is under contract and this is contingent on closing. I even put the "contingent on landlord closing the property" clause into the lease agreement. In the unforeseen circumstance I'm unable to close, I would just reimburse the application fee. Since I have past history of successfully renting out properties under contract, most of my prospective tenants are comfortable with this approach. 

Again, not every landlord is comfortable with this approach. You have to do whatever you can stomach