Scheduling Showings with Tenants in Place

[Wes M.]

I'm curious if anyone has any preferred methods for handling showings while an existing tenant is still in place. We have two properties that we are leasing up at the moment and coordinating showings with potential tenants while the existing tenant is still in place is becoming problematic. Thanks in advance for any pro tips!

Wes

[Chris Seveney]

Quote from @Wes M.:

I'm curious if anyone has any preferred methods for handling showings while an existing tenant is still in place. We have two properties that we are leasing up at the moment and coordinating showings with potential tenants while the existing tenant is still in place is becoming problematic. Thanks in advance for any pro tips!

Wes

 I like to coordinate an open house style - where I tell tenant, hey on Saturday from 1-3 PM I am having people come over. That ways its more convenient for them and also easier for you so you do not have to or have someone goping back and forth and potentially showing it when its not the cleanest.

[Richard F.]

Aloha,

Existing Tenants can be problematic for a variety of reasons, plus, they can spoil your Prospect's "First Impression". Additionally, if you prematurely sign a Rental Agreement for a new Tenant, and there are any delays with the outgoing Tenant, or you discover needed repairs that were not evident while occupied, you have created bigger problems for yourself.

Once the Tenant actually vacates, you can perform a thorough and proper inspection and initiate all appropriate repairs. Once completed, and thoroughly cleaned and polished, you can offer the unit (with pristine, and accurate, photos) for "immediate move-in" on approval. You spend less time with "tire kickers" that are looking for something next month, and that typically CONTINUE looking (and often ghost you when they find something "better"), even if they have submitted an application for your occupied unit.

It is much less costly to be thorough with repairs while vacant and contractors are on site, than to call them out for multiple service calls to an occupied unit.

[Wes M.]

@Chris Seveney Thank you. I am actively utilizing the open house method.

[Nathan Gesner]

Quote from @Wes M.:

The first thing I do is inspect the rental myself to see if the Tenant keeps it in decent shape for showings. Then I talk to the Tenant about my plans. 

1. The law requires the Landlord to give notice; it does not require you to give permission.

2. Try to accommodate the Tenant's schedule, within reason. If they are sick or work a night-shift, I'll work around those things. But I also expect the Tenant to try and work with me to make it showable most days.

3. If the Tenant outright refuses, I won't force the issue. However, I do let them know that failing to allow showings may prevent me from finding a renter and they may be held financially liable for that delay. It's in my lease.

[Julian Colvard]

What is the reason for trying to show while tenants are currently there?

I just wait till they are gone for the following reaons:

1. They may move out at a later time than expected which can throw off all timing for the next tenant to move in which could put the new tenant in a situation where they have to stay on a hotel due to leaving their last residence.

2. Handymen and vendors do not always follow through on the days / times they tell us they will be there to complete the job we've hired them to do which can also throw off timing. 

3. After the tenant moves out, there could be a repair discovered that will take more time than expected and the turnover time may take longer. 

4. Unless the tenant is organized and clean, units show better and more applications are received (generally) when the unit is showed vacant.

[Wes M.]

Hi all, thanks for the helpful responses. I typically like to list a property for rent 60 days prior to the lease ending for the current tenant. This inevitably results in some overlap and my preference is to not lose a months rent in the process. If I were to wait until the tenant vacates then it is possible I could lose up to two months rent during turnover. We do reserve funds for vacancy, but I would prefer to keep those in reserves if possible. 

I will add a clause in new leases for showings however. 

[Greg Weik]

We list properties on the market about 30 days before the lease end date.  Here are some techniques we've developed:

1) Our lease has language indicating that we will provide 24 hours written notice for entry (standard) but further, that if tenant refuses entry, they will be charged $150 from their deposit per occurrence.  This is what we call "teeth" and we've never had a problem since this clause has been in our lease. 

2) You won't be able to control human behavior, in terms of the condition the departing tenants keep the home in.  But this is exactly why you hire professional property management.  Our biggest value add is predicting human behavior -and I don't mean whether tenants will pay rent.  I mean how they will LEAVE the property.  Statistically, well over 99% of our tenants pay rent on time each month, so it's the turnovers that pose the biggest potential problem (or solution) to the landlord. 

3) Tenant placement and setting clear expectations save the day most of the time at turnover.  We typically have good relationships with our tenants, and they are happy to comply and tidy up for showings.  Our lease is very clear and we send move out instructions prior to lease end, reminding tenants of the standard for which the property is to be left.  Some tenants, however, couldn't care less and live like slobs.

4) If we have a showing of an occupied property and it's a train wreck, we will pull the listing and advise our client we have to wait until it's vacant, clean and we know we can make a showing count.  

5) Our standard "listed availability date" is 5-7 days from the day the lease expires.  Ideally we have a new lease in place, with tenants to move into a property with only 7 days of down time. We put a lot of pressure on ourselves and the contractors with whom we work to make sure the move-out is done, turnover work is done if needed, and a move-in inspection is done, all between tenants.  We do this with nearly 1,000 doors, but it usually goes great based on the careful work we do for tenant screening and placement. 

[Michael Smythe]

Depends on the existing tenant as they can make it difficult by talking bad about the property, leaving a minor in the home alone, leaving a vicsious dog in the home, etc.

Yes, you can threaten eviction, but if they're already moving they'll often be gone before a court date.

[Colleen F.]

@Wes M. Block the times with the tenant and list when you will show in the ad.  Only list within 3-5 days of when you can show, people don't want to wait to see it. I absolutely hate that zillow request a tour. I have people who can't understand why you can't show an occuppied unit early or late in the day.  Have a video. Price competitively.  If it is absolutely awful you are better off not showing.