The lease on your rental unit is almost up. Your current tenant has decided not to renew their lease and now it’s up to you to find a new tenant to occupy your rental. Naturally, potential new tenants are going to want to view your rental before they decide to move forward with the application process.
When it comes to showing your unit, you can either wait until after your current tenant moves out or start showing the unit while your current tenant is still living in the unit. Like anything else, there are pros and cons to each approach.
Showing an Unoccupied Rental Unit
Pros
- It’s less stressful. You don’t have to worry about coordinating schedules with a current tenant prior to a showing or whether the unit is clean.
- There’s more time for repairs. With no tenants in the unit, you have more time to make any repairs or updates that can help the unit show better.
- No need to give notice. You can show or visit the unit whenever you want, no notice required.
Cons
- Loss of income. You will have to sacrifice some of your income on the unit, depending on how long it takes you to find another tenant.
- You’ll be paying for utilities. Even though your unit is unoccupied, you’ll need to have electricity and water turned on for showings.
Showing an Occupied Unit
Pros
- No loss of income. You can keep collecting rent payments.
- No vacancy. After your current tenant leaves, your new tenant can move right in.
- No transfer of utilities. You won’t have to worry about transferring the utilities out of your name and into your new tenant’s name since you won’t have to pay for utilities between tenants.
Cons
- Unpredictable level of cleanliness. You won’t be able to predict what state the rental unit is in, if the current tenant has tidied up recently or has already begun packing and the unit is in a bit of disarray.
- Undetermined temperament. Is your current tenant leaving on good terms? Will they be agreeable to the showing process or will they have negative things to say about your rental unit or even you as a landlord?
6 Tips for Showing an Occupied Rental Unit
If you’ve weighed the pros and cons and decided you’d rather show an occupied rental unit, consider the following tips to ensure the showing process is a smooth one.
1. Communicate
Discuss your plans with your current tenant. Let them know when you want to start showing the property and express any expectations you may have of them. The more frequent the communication, the better.
2. Give Ample Notice
Coordinate a schedule or rough time frame between you and your current tenant that generally works best for showings. Always provide advanced notice before a showing, usually about 24 hours’ notice, so your current tenant has plenty of time to prepare. Reference your state laws to see how much notice you should give your current tenant if you are unsure.
3. Ask Your Tenant to Tidy Up and Secure Pets
Providing your current tenant with notice prior to a showing affords them time to clean up a bit and secure any of their pets. While they are not obligated to comply, it doesn’t hurt to ask, especially if you have a positive relationship with your current tenant.
4. Reward Compliance
Thank a cooperative tenant with a gift certificate to a local restaurant or retailer.
If you intend on having numerous showings and open houses, consider giving your current tenant some rent abatement for the intrusion. Think about combining multiple showings into one event to limit the frequency and overall number of showings.
5. Avoid “For Rent” Signs
Physical signs can encourage unannounced visitors to knock on your current tenant’s door. If you feel strongly about having a physical sign outside of the unit, make sure you include wording like “Showing by Appointment Only” and “Do Not Disturb Occupants.”
6. Think Twice About Using Lock Boxes
Although real estate agents are required to give notice before allowing anyone into the unit via lock box, lock boxes can also encourage last-minute showings. You don’t want your current tenant to feel unsafe or slighted while they are still renting from you.
In the end, if your relationship with your current tenant has soured or left them disgruntled for any reason, it would be wise to wait to show your rental until after they have vacated the unit.
However, if you have a mostly positive relationship with your current tenant, it can be more profitable to show your occupied unit. If you approach the situation with transparency, frequent communication, and overall politeness and consideration, your current tenant probably won’t mind accommodating occasional showings. If you're looking for a way to reach more tenants with your listings, Apartments.com offers free listing services with exposure to millions of renters. In addition, your ad will show up on all of our twelve network sites. Get more exposure and schedule more showings with our online platform.
