Finding tenants this time of year

[Tamara R.]

Hi All:

I am new to Bigger Pockets. My husband and I placed a contract on a short sale (investment property) in August expecting it to take at least 6 months, but the process moved quicker than expected and we are closing next week. House needs some work (mainly cosmetic) and we are concerned about being able to find tenants this time of the year. Have you all found this to be an issue in your rentals? Home is in Prince William County, Virginia (Washington DC suburbs)near Fort Belvoir if that helps.

[Ed O.]

I would begin marketing the property now. There's a lot of tire kickers that plan their moves months in advance. Have you considered section 8 renting?

I'm currently building my own procedure manual for my own procedure manual for my rental business. Below, is a rough, unpolished part of the marketing and leasing procedure. Take it for what it's worth, but hopefully it will help.

1. Determine desired / likely tenant (s8, market, student, etc)
2. If s8, list vacant home on housing authority's list, which is distributed only to section 8 eligible prospects. Consider using social serve.com's free vacancy listings. The downside is the large number of calls from low income very poor credit applicants. They will waste your time.
2b. If looking for market tenants, put a sign in the yard. On the sign, include rent, number of bedrooms, and date available. (Learned by mistake, lots of "how many brs?" Calls. Other free listing sites are out there, craigslist, etc. I have had some extremely crappy apps come in from cl...as in 5 evictions in the last 2-4 years.
2c. Mention to tenants and other landlords that you'll pay $100 for a tenant that moves in. Oddly enough, this has been really good for me in the last 12 months. People on section 8 hang out with like minded folks. CAUTION: Be careful to not let your long term, trashed the home in 3 months section 8 tenants know you have a nice unit ready for them to move in blow up. I have a trashy tenant always asking if I have one open, she wants a nice unit, now that she's wrecked hers. My safest response is that "I may have something coming up, not sure if they will renew."
3. Incoming Leads
A. Use a line other than your own. Kall8, a cheap 800 number works, google voice is good too.
4. Lead handling: Return all inquiries from desirable tenants within 48 hours.
4a. Have a script ready to prescreen and filter out the duds.
4b. Have a prearranged time set to show the home. Tell prospect the home will be open from 2-3pm for showings.
4c. Press for deposit, application fee, and/or landlord packet (section 8) if tenant seems desirable.
5. Upon receipt of partial deposit (nonrefundable holding fee) tenant shall sign:
-Lease(s) all 3 if section 8
-Landlord Packet
-Holding fee form
-Agreement to pay remaining deposit
-Any other leasing incentive agreements

1. Determine likely tenant.
2. Market according to perspective tenants.
2a. Section 8 list and / or sign in yard
2b. Online resources
2c. Seek tenant or peer referrals
3a. Set up alternate phone/answering service
3b. Set up a web site with an online application
4a. Develop a script for handling incoming leads.
4.

Leasing packet:
1. Application
2. Lease
3. Landlord packet (if section 8)
4. LBP Pamphlet
5. LBP reciept form
6. Reservation fee form
7. Property Incentive form
8. Property inspection form