A couple of things on turning over a unit between tenants

[Sam Leon]

I have a few things that needed input from BP landlords on turning over a unit.

SHOWING A UNIT WHILE STILL BEING OCCUPIED

This is something I have never done I always waited till the unit is vacant and I have a chance to clean and get it to at least a semi-presentable state before I show.  I would advertise a week or two prior to existing tenant moving out and tell everyone the unit will not be available for showing until a certain date...then I'll call back and schedule all the viewings later.  I know the prevailing opinion on this is to show the unit as soon as you know it's going to be vacant to minimize vacancy but for me the reasons I did the opposite are: (1) The applicants (and the existing tenants) appreciate the courtesy of not being hassled the last few weeks when things are hectic; (2) The unit is rarely in a presentable state with packing boxes out, pictures on the walls removed...(3) it's a challenge to schedule for a mutually convenient time for three parties as I prefer the existing tenant to NOT be home.  But this one time I broke my own rules as the existing tenant is moving out to another part of the state and is gone three days out of seven and he encouraged me to show it...so I did.  I told the applicants that to expect the property to be a bit messy and it is not the final product and it needs cleaning, painting and some repairs. and even though I set the expectations I still get many "there are some smudges on the wall and nail holes can you knock $25 off the rent?" and "these blinds are crooked how about giving me a better deal and waive the security deposit?"  Funny thing is those who made those comments were all females, the guys didn't seem to mind, or may be they didn't even noticed.  I guess I am going back to not showing a property until it's ready, I don't know how you guys can make that work.

DO YOU CONTINUE TO SHOW AFTER AN APPLICANT HAS BEEN APPROVED?

Pretty sure the answer is yes.  For me I continue to advertise, I do slow down on the showings because I couldn't in a straight face tell someone "yes the property is still available" which is technically true but if I already have an applicant, collected app fee, did the screening and I approved it, and all I am waiting is the lease signing and collect my first, last, SD, I feel I need to let them know that I haven't sign a lease, the situation is dynamic and can change but I have already approved an applicant, I will show it if you are still interested and 10 out of 10 the caller would not want to see it and just say to let them know if the situation changes.  Now of course the applicant can back out after only paying a $35 app fee so I normally push for a lease signing ASAP (within days) to collect my money and get everything in order.  However this time around I have a series of projects - electrical, water heater, roof, counter top, termite tenting...and the termite tenting is the schedule killer since I need the roof done before tenting due to new wood being brought in for repairs that may be infested, and I don't want the tenant to move in and have to move out for a few days to tent, so the scheduled move in date is set 3  weeks away, which means we probably won't sign a lease till later.  So the question is, do you continue to show just in case the applicant finds something else and back out, or you collect a deposit to hold the unit and stop showing?  If you continue to show, do you say anything to new callers to let them know you already have someone lined up?  If I don't say anything I would feel like I am wasting someone's time and being deceiptful, if I say something it is pretty much the same as saying it is already rented.

CAN ONE SIGN A LEASE WITH AN OPEN ENDED MOVE IN DATE?

As I mentioned earlier I have a series of projects that need to be executed and some of those are tasks that need to be done in that order and throw in the permitting process, historic preservation board's oversight, power company connect and disconnect schedules, termite tenting schedule, weather, I do not have full control over when the unit will be available, so the move in date is more like "NO LATER THAN FEB 15" but could be sooner.  This makes it difficult to get a lease executed unless we can sign a lease with the NO LATER THAN clause.  Is it better to just collect a holding deposit or to go ahead and execute a lease now with an open ended date and revise it later?  Pros and Cons?

[Aly W.]

I only show an occupied unit if the current tenant is amenable to it and I know the place is clean and orderly. If they tell me it's a mess and they're stressed, I will wait until they move to clean and do repairs. It's not worth agitating the tenant and showing the unit in less than appealing condition. It's a good idea to take names/numbers though.

I continue to show a property until a lease is signed and all money owed is paid - that means first month's rent and security deposit. For our condos, the tenant has to also be approved by the condo association and a signed lease is required for the process. So even though they have paid in full and signed the lease, they could potentially be denied. During that process, I'm still advertising, but am not showing the unit. I'll take names/numbers and let them know what the situation is, and I'll give a courtesy call to let them know one way or the other.

For our SFRs, the property is available until all money is paid and the lease signed. I will hold a property for a few weeks with all amounts paid, depending on the amount (and qualifications) of additional applicants. 

If a tenant isn't certain about the move in date, the lease will say something like "on or about January 1, 2015", and the second month's rent will be prorated based on the actual move in date of the current month. 

If it's me as the landlord that can't guarantee the move in date, the lease states:

"The landlord is not responsible to the tenant if the landlord cannot give the tenant
possession of the dwelling unit at the beginning of the term. The tenant may cancel this agreement and receive a refund of all money paid if the tenant cannot have possession at the beginning of the term."

We had an SFR that had the copper pipes stolen a few days before the tenants were going to move in. The re-plumbing of the house took about 2 more weeks, but the tenants were willing to wait. They had already paid the full security deposit and met us at the house to give us the first month's rent when we discovered the theft.

Given the many moving parts of your renovation which are out of your control, I know I'd sleep better by not juggling tenant commitments and showings and money until I felt the move-in date could realistically be within 2 weeks; i.e., wait until the beginning of February to see where things stand.