Show Pre- Rehab or not?

Question

4 unit property in Oakland with two units that are vacant and rehab will be starting next week. Normally I would wait to show ready units, but I know leasing ability typically tends to be less as we get out of the summer months. Obviously, I want to avoid as much vacancy cost as possible, but still be affective in renting and not sacrificing the best rate possible. From people's experiences, I want to know thoughts on showing the units while they are being upgraded?

Marcus Auerbach · Answer

No! Your instinct is correct, don't do it. You have several issues: people are not used to seeing through the dust. People won't trsut you will finish. People may have a different expectation on the final finish and then you have a dispute on your hands. Focus on the task at hand and show the units after they have been done and cleaned. Don't forget to whipe on top of the fridge before the showings ;-)

David Avetisyan · Answer

I wouldn’t show the unit until it’s rent ready. In areas like Sacramento, you can rent year round without any major issues.

Properties that are newly listed will typically carry the most steam, don’t chance it on losing potential tenants.

To your success!

Mike McCarthy · Answer

I agree with @Marcus Auerbach. I don’t mind showing the property when it’s close. If it’s missing a kitchen counter or toilet install, not a big deal... but the prospective tenants need to see 90% of what’s going to be there. Most people can’t envision what it will look like even if you have ping chips and a kitchen cabinet door sample.

How long does it take to rent a unit in your neck of the woods? Most tenants aren’t looking 2-3+ months out anyway.

Osazee Edebiri · Answer

Yeah out here most people want to move in the Summer. Probably we're too weak to move in rainy winter, let's not talk about snow 🤣. No, but families dont like to switch schools and traffic really does for winter Holiday Season.

Marcus Auerbach · Answer

@Osazee Edebiri I wonder if that is what we call a "limiting believe" - I have rented units in Jannuary in Milwaukee - with a foot of snow on the ground and temperatures around zero. There is less demand, but there is also almost no supply. You guys are so blessed with the weather, I am surpised to hear it makes such a difference?

Osazee Edebiri · Answer

Thanks,  yes you can rent year round, but rents are significantly lower in the winter. Sac is similar to the Bay, just cheaper.

Osazee Edebiri · Answer

Thanks.  It's not really about length of time, it's more about how the rate drops, offering concessions, and slower traffic. Once out of the Summer season.  The rehab should only take 2 weeks, but I have some prior engagements, so was trying to strategize getting ahead of the curb.

Osazee Edebiri · Answer

Thanks,  I wonder if you or anyone has any good strategies for leasing sight unseen prior to rehab being complete, that I haven't thought of?

Show Pre- Rehab or not?

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