For Rent Open House?

Question

I am getting close to having my new rental ready to lease and I am considering having an open house. I have some questions I have been wondering about and would love the input of more experienced landlords on.

The property is a duplex in Indianapolis, it should be ready to offer for rent in about a week. I was wondering when I should start marketing for the open house. I am planning to post ads online on several free listing sites. I would like to start advertising right away so I can get as many people to come to the open house as possible, but I don't want to have something delay the property from being ready and have advertised an open house date that I can't have. To solve this I thought of the following options:

1. Push the open house back one week so I have more time for unforeseen delays.

2. Don't advertise the property as an open house, just have a number to call, then when people call, do some pre-screening and tell them about the open house, this way I will have contact information for everyone so if I have to change the date I can call them.

3. Just advertise the open house for the planned date and if everything isn't ready I will just have the open house anyways. I don't think there is much that would have to be pushed back at this point, all the work is scheduled to be done early next week so there would be a few days buffer.

I also don't know how much lead time I should have for these ads, is a week and a half enough? too much?

My other concern is what to do once I have potential tenants viewing the property. I want to get a lot of applications in. I would like to collect applications with the $10 application fee and make copies of their recent paystubs and drivers license. In your experience, will people be willing to do this? Also, should I print the income requirements on the informational flyer I am going to hand out?

I really want to make this open house go well so I can find a tenant quickly, any help is greatly appreciated.

Aly W. · Answer

This is all great advice. I've done individual showings and open houses. Now, I schedule individual showings like an open house. When someone calls to see the house, I tell them they we'll be showing the house tomorrow (or whenever) at 1PM. I try to keep the group showings to twice a week. Specific day, specific time.

I also tell each applicant to call half an hour before the appointment. They don't know there are others scheduled, and I tell them my contractor will be showing the house and will only be there if they confirm 30 minutes prior.

That way, if 4 people say they'll be there, and none of them confirm, he doesn't go there. Since I started requiring confirmation calls, the no show rate dropped 90%. If multiple people show up at the same time, and they have, it gives them the incentive to fill out the application right there.

I have a scented candle burning before they arrive, toilet paper in the bathrooms (good call), and a small plant or floral arrangement on the kitchen counter. A stack of applications and pens. I've also used my phone to take photos of their driver's license and I've told them on the phone I'll be doing that.

I don't have an application fee but 2 of my properties have a condo application fee and I tell them that the board will be doing a criminal background/credit check. That immediately weeds out those who have something to hide.

Ann, I use Postlets.com, which I believe is similar to vFlyer. It formats the ad in HTML for craigslist and posts to other sites too.

And you're right about the condition of the unit. My last house for rent badly needed painting. I was showing it prior to the painters start date, and no one was interested. The minute they saw the painters at work, smelled the fresh paint even though it wasn't finished, I had multiple applications.

Ann Bellamy · Answer

Definitely an open house, I'm with Mitch - I don't do individual showings either.

When I advertise, I include showing times in the ad, such as Friday at 5PM and Saturday at 2PM.  that way, if they can't make one, they can make another.

I put as much info as possible in the ad so they know what the qualifications are.  Why waste time with people who aren't going to qualify in the first place?  I put a link to my email, and my phone number in the ad.  And half of them won't read it anyway, and will call and email you with questions that you answered in the ad.  Just part of being a landlord.

Try vflyer.com - they have a electronic flyer account for up to 5 flyers at a time.  You then copy the html and paste into Craigslist for a very professional ad - it includes photos.  It will then post to other sites such as hotpads, etc.

Start advertising at least a week or more prior to the open house, and if you get someone who wants to see it early, and they are qualified, then by all means show it to them.  If you are in the final stages of prep, and the place looks good, then you can show it before it's ready.  But realize that most tenants don't have the vision to imagine what it's going to look like when it's done. So if it's dirty still, or dark, or needs painting, don't let them in.  They won't see past it unless they are desperate.  And if they are desperate, you probably don't want them.  I don't think I'd advertise a date and then push it back unless you had to for weather reasons.

I also make sure to put a sign outside of the building.  I have subscribed to Phone.com and bought an 800 number, so I set up the menu with a recording about the unit for people who have seen the sign but not the ad.  they can listen to the prerecorded message, then menu through to my cell phone.

I also offer a discount for good credit scores.   You can try that in your ad also.

I then have a handout with detailed info about utility costs, parking arrangements, etc and be sure it has my contact info on it.  If they are interested, I take their application with a fee for pulling a background check.  Be sure to check rental history and credit score.  The best indicator of a good tenant is rental history information.  Always call all references, but be wary of the current landlord: they might give him a good reference in order to get rid of him.

Good luck

Mitch Kronowit · Answer

Good for you Kyle. Open houses are the only way I have shown my property in the past. The last time I did, I took out an ad in the newspaper (waste of money) and in Craigslist about 3-4 days prior. Remember, prospective tenants are going to spend their week lining up showings for the coming weekend.

I place about as much information in the ad as I can. Property address, date and time of open house, monthly rent, security deposit, # bedrooms, # baths, square footage, amenities, appliances, directions, photos, etc. I also put my phone number so I can answer anything I left out or repeat something RIGHT IN THE AD!!!

I do not schedule private showings. If they can't make the open house, too bad. I'm not driving into the next county on a week night and risk them not showing up at all and wasting my time. The only exceptions I made to this was the last time my condo was available for rent. Two prospective tenants didn't want to wait until the Saturday open house and asked if they could see it earlier (they were gnawing at the bit for a place). I told them I would be there Friday afternoon cleaning and checking everything out and they could stop by if they wanted to. I ended up with 2 applications and 2 checks that afternoon, so I didn't even really need the open house anymore, i.e., I approved one of them and she still lives there!

For the open house, I bring applications, pens (cheapo's since they tend to disappear), business cards (not critical), a wastepaper basket (you'd be surprised), and copies of the CC&R's if an HOA is involved. I once had a prospective tenant who asked how strict I was on the pet policy and had to explain it was the HOA's policy, not mine. Make sure there is toilet tissue in the bathrooms and paper towels in the kitchen. Nowadays, I would also bring my iPhone and use it to photograph their ID (my applications clearly state a Photo ID is required to apply).

If it's a slow market, you might consider some refreshments to help schmooze the prospects, but I haven't done that yet. I think that's about it. Good luck with your open house.

Steve Babiak · Answer

Accepting a check for the application fee is a BAD idea.  Cash only, although I will consider money orders.  If that check bounces because they are deadbeats, then YOU are stuck with paying to find that out; better for that to be an expense of the deadbeat paid in CASH.

Not a good idea to have things burning.  I suggest you get the plug-in type of room fresheners that work off an outlet - having the outlet on a wall switch is convenient too for turning on and off, but you can always unplug when done.

R.J. Lange · Answer

Best advice on this from my experience.

Do not ever host an open house for a rental- or tell other prospective tenants there are other viewings around the time they would like to schedule for a viewing. It has been a failure for me every time.

1 of 5 people you tell this will be an open house will show.

Advertise move in ready, and schedule for their personal individual viewings as you receive interest. If you need to rent it quick, offer possible early occupancy incentives if the applicant you choose is too far out on their move in date.

Also, have a plan for an online application and rental application fee collection- its common and best practice.

Aly W. · Answer

Good suggestion Steve, I'll use that for my next property showing in a few weeks.

I don't use Open House signs for the single family properties, since everyone in the area will just drop in to look. I put a For Rent sign in the window. My open house concept is really "group appointments".

Also be sure to go through the house when the showings are over and check every window and door lock, basement included.

Mitch Kronowit · Answer

These weren't checks for application fees, they were for first month's rent even though I explained to them they had to be approved first.

Tracey Williams · Answer

Great ideas!

I just love this forum!!!!!!!!!!!!

Kyle Meyers · Answer

Thanks everyone. I think I will start advertising in the next couple days and have open house in a week and a half. I'll make sure to have a lot of applications and fliers available for everyone. I think it sounds much easier to take a picture of the id than scan or copy it, which is what I was planning on. A couple other questions for everyone:

1. When do you find is the best time for an open house? I was planning to do it on a Saturday, I don't know if I should try to start early in the morning or if most people are available in the middle of the day.

2. Do you put up signs around the neighborhood? Do you get open house signs or for rent signs?

For Rent Open House?

Most Popular Reply