There will inevitably come a time in a landlord’s career when the end of a tenant’s lease period is approaching and they send you notice that they don’t plan on renewing it. When this happens, the responsibility is now on you to look for a new tenant for your rental property.
Understandably, a prospective tenant would want to see the property in person before they sign a lease. However, things are not as straightforward since you still have a tenant renting out the space until the lease period ends. You have two options; either to show the unit while the current tenant’s renting out the space or wait till the tenant moves out.
If you wait until your tenant moves out then you run the risk of having long vacancy periods which can be costly and hurt your investment. If you would like some tips on how to conduct a property showing on an occupied unit, keep reading!
The Occupied Rental Unit
Although this might seem like a stressful endeavor, it has several benefits from a financial perspective.
Most investors or property owners have set plans that have informed their property leasing. By conducting a showing before the unit is vacant, you can continue getting a rental income to have a better chance of having a smooth transition between tenants.
One of the biggest challenges of showing an occupied rental unit is working with the tenant’s schedule. Be sure to establish a positive professional relationship with your tenant to make the show process easier.
To help landlords in Georgia show their occupied unit, here are a few options that they should consider:
Communication of Your Plans
Just as the current tenant has been open about their plans to move out, it’s prudent that you should do the same. We recommend that you do this face-to-face. Let them know that you would need to show the property to potential tenants. You should also detail any expectations that you may have of the current tenant.
During this time it’s also best to listen to the current tenant’s wishes so you can come to an agreement that works for both of you. Remember, they are still renting the space and they have a right to their privacy.
Every time that you have a potential tenant who wishes to view the property, you must prepare a notice for the current resident. This is not just a courtesy, it’s also required by law.
Although Georgia landlords technically aren’t required to provide notice before entering the space, they must respect a tenant’s right to quiet enjoyment at all times. This law applies to your property in Woodstock, Georgia, and provides that the tenant has the right to enjoy the rented premises, free of undue interruptions.
It’s therefore recommended that you give tenants 24 hours’ notice before entering the property. The notice should detail the time and purpose of the visit.
Clean Space and Secure Pets
Request that your current tenant cleans up the space before the showing takes place. This will help improve the property’s image and create a solid first impression with prospects. What’s more, if your tenant has pets, don’t forget to ask for them to be secured.
Consider Rewards and Gifts
When you conduct a showing of a unit that is presently being rented, you should put yourself in the shoes of the current tenant. Though they are not obligated to do so, they are going out of their way to accommodate your needs.
They are allowing strangers into their home, cleaning the space, and working around your schedule. Therefore, you must remain mindful of their time, privacy and needs.
Consider rewarding the tenant for their compliance. You can get them a certificate to the local restaurant or shop. It may look like such a small act but it will go a long way to improve or maintain good relations.
“For Rent” Signs
You might feel obligated to put up a ‘For Rent’ sign on the property to advertise the space. However, this sign could encourage people passing by to knock on the tenant’s door to inquire about the space. This kind of disruption must be avoided.
If you feel that you must put up a sign, you should use wordings like ‘By appointment Only’ or ‘Don’t knock on occupant’s door’ Your tenant will appreciate the gesture immensely since they will feel more safe and secure.
You should also include your contact information so that interested parties can in touch with you directly and not bother the current residents.
An Unoccupied Rental Unit
This is the simpler alternative of the two. Showing an unoccupied rental unit comes with its own set of pros and cons.
As a landlord, you don’t have to coordinate schedules with the current and potential tenants. It’s also less stressful since you don’t have to always give notice whenever you want to view the property. What’s more, you have time to put in some upgrades or do some renovations, in case there is a need for them.
However, a vacant unit means your property isn’t generating any income. This might set you back, especially if you had budgeted on a certain amount of income each month.
Another con is the meeting of costly utilities. Just because a property is vacant doesn’t mean you are free from paying utilities. Electricity must be on during property showings and you have to factor in maintenance, cleaning, and inspection expenses.
With these tips and tricks, you are well on your way to conducting property showings in occupied spaces!
If you have more questions about managing your property contact a trusted property management company today. Haas Properties has established itself as the property management company to rely on.
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