Under contract on Triplex. One unit vacant. Can I try to fill?

[Josh Michel]

I'm recently under contract on my first investment property, a Triplex, one unit of which is vacant.  I'd like to try to fill the unit for as close to the closing date as possible, which is about 55 days out.

Is it OK to shop the unit (with the current owner's consent) with the available date as a few days after close?  I realize I cannot show the unit (unless I get permission to from the seller of course) until then.  Assuming I cannot show it, is it wise to try to fill it?  At least get the ball rolling?  What pitfalls will I hit if I do shop it?  Does a rental get "stale" if it sits on the market too long because I cannot fill it until after close?

What would the BP forums recommend?

[G. Brian Davis]

I wouldn't advertise it until a week before you settle.

Think about it this way - would you want the kind of person who would rent a property sight unseen? It smacks of desperation on the part of the renter. 

And what happens if the deal falls through? Or gets delayed?

Take photos now, prepare the rental listing, but I wouldn't actually advertise it until a week out. Then you can schedule showings or an open house for the day after settlement.

Best of luck with this first deal, hope it's the first of many to come!

Brian

[Marcia Maynard]

You seem confident the unit is ready to rent. If there are any maintenance and repair items you need to attend to, make sure you leave time to attend to those in the time frame you have from when you close to when you welcome a new tenant.

At this time, I would prepare my letter of introduction for the existing tenants, the rental agreement that I would negotiate for them to adopt (complete with my property rules), and plan for meeting with each household to personally introduce myself and to tell them a little about me and my management style, as well as learn a little about them and what matters most to them as tenants. As soon as the purchase is complete, I would move forward with those items.

For the vacant unit, I would prepare my advertising, complete with photos and a description of the unit. Perhaps the seller has some good photos he would share with you, or even his advertising copy... as a starting point, from which you could establish your own. Be sure to outline some of your minimum criteria, so people can easily see if they meet your criteria or not. If they self-eliminate, then you won't need to reject them.

If you choose to advertise the unit before you own it, you must be honest and open with any prospective renters. Let them know you are not yet the owner, but soon will be if all goes well.  Use the verbage.... "coming soon" instead of "now available." Personally, I would never advertise a unit until I own it and I know it's ready to go. 

Vacant units are more prone to being broken into, advertising an empty one brings that to the attention of the public. It also attracts "looky-loos" and prospective renters to the property, peeking in windows, etc.... which could be disconcerting to the tenants in the other two units. I wouldn't disclose the exact address until I was the owner and the prospective tenant had passed my telephone screening.

Since this is your first residential rental property, spend this time learning as much as you can about the art of landlording. Listen to BP podcasts and read the best books. Congratulations on your purchase!