SO, YOUR TENANT IS VACATING

Your tenant has given notice to vacate and will move out of your home at lease end. This is a guide of the process and how we handle it

Professional Rental Operations™ will begin to market the unit in the effort to find a replacement tenant after the existing tenant has fully vacated.

THIS IS A CHANGE FROM THE WAY WE USED TO DO THINGS: We will not put the unit on the market until AFTER the Tenant vacates. We feel this change benefits the property owner, the current tenant and future tenants as explained below.

Once the tenant fully vacates, we will take the following actions:

We will conduct a move out condition inspection taking 50 to 200 photos. We take a 5 to 15 minute move out condition video for the record. If there is any damage or issues, above normal wear and tear, that would require security deposit deductions, we will have an unbiased 3rd party do an inspection to document the items. We fully document any and all issues with the home and plan for the make ready improvements.

BENEFITS TO THE HOME OWNER

Market a Move-In Ready Home:

We feel that the market with tenants has shifted to demand a move in ready home during the time of marketing. There have been negative incidents when we market the home with old photos and an existing tenant in place that have led to this change. In these incidents, a new tenant would move into the home after a one time showing while tenant occupied, and be upset with the condition. By marketing the home in the “As-Is” and move in ready condition – there will be no confusion as to what the new incoming tenants will see in the condition of the home when they move in. It is possible, if the tenant pushes an issue, that you could have the property vacant longer and it could cost you money depending on how far they want to take it.

Lived-In Condition of the Home with Tenant:

In some instances, current tenants do not put forth effort to ensure a well showing property. Sometimes, this is because the tenant is annoyed that we are showing the property with them still in it. Sometimes, its not their fault at all, they just don’t keep things neat and tidy (think clothes on the floor next to the hamper), often, no matter what the reason, this acts as a turn off to prospective applicants. Tenants have little incentive to show the home other than being obligated in the lease. Once the tenants begin packing to move, boxes begin to pile up, it gets dirty etc. This leads to missed opportunities with tenants and causes the unit to sit on the market longer, which leads into the next two points.

Units Shows Better:

The unit show better without the tenant there during the showing. In a majority of cases, tenants have pets. Its annoying to a prospective tenant that is trying to focus on the property to have a dog jumping on them. Or for the showing agent to have to open the door slowly and everyone squeeze in a small cracked door so that the cat doesn’t run out. Sometimes, tenants follow prospective tenants around pointing out every small detail that is off with the unit. Lastly, it eliminates the blocked showings from tenants. Sure, the lease agreement obligates it but, is there really any recourse? No. Not really. The tenants can ignore their phone call or text messages to approve a showing request. If the unit is vacant, no one needs to approve the showing – Leading to more showing opportunity and renting faster.

The Listing Can Go Stale:

When a property is listed and occupied, the listing will be there longer. Prospective tenants can see how long a unit has been on the market. If its been there for 60+ days, this may act as a red flag to prospective tenants. Why isn’t it renting? What is wrong with it? This leads to less interest and sitting vacant even longer. By marketing the property after a tenant move out and when its ready, the listing won’t be up long, because we will rent it within 21 days – We guarantee it!

Privacy:

We respect the privacy of our existing tenants as you would want if you were a tenant. No one wants to have to deal with strangers rummaging through their closets and cabinets.

Hold Over:

Sometimes, things happen and the current tenant is unable to vacate the property on the day they are supposed to. They then become a “hold over tenant”. When this happens, there are terms in lease agreements that deal with this, but the fact is, they aren’t leaving and now, we run into the issue of potentially having a new tenant lined up to move in, and the old tenant not being out. Its a nightmare for everyone! By not marketing until the tenant is fully vacated, we eliminate any possiblity of this happening and hold overs are not an issue.

Eliminates Disgruntled Tenants:

As mentioned above, and maybe for good reason, most tenants don’t like it when their property is shown while they are still in it and doing so may cause them to become disgruntled. As a disgruntled tenant, they may be upset when the prospective tenant is there looking. I don’t think it needs to be expalined as to how this could be a negative situation. Has the management company or owner ever had to tell the tenant no about something? Have they had to have their lease enforced in some way? All these things will come out as negative in front of a prospective tenant. If the tenant has vacated prior to showing this issue is eliminated.

Vacant Unit Showings:

New techniques are out that allow for safe and effective self service viewings from prospective tenants. With the unit occupied, we cannot take advantage of these opportunites to rent units faster. With it unoccupied, we can and this is why we are able to guarantee we will rent your vacant unit in 21 days or less.

What About Lost Rent?:

That’s a great question and a great concern. We have looked at the vacancy rates and time it takes to fill units both ways. We have found that because of all the reasons listed above, we are able to rent homes faster, and keep them rented with happy tenants using this method opposed to advertising an occupied property. Not only can we rent them faster, but we can generally get a little bit more rent — These are good things for owners!

What About Lost Time Keeping It Off Market?

This is a concern that goes hand and hand with the above concern and it has basically an identical answer. It is our thought, based on experience and the numbers we are seeing that by making this change it will contribute to a unit renting faster, and for more money. If a unit does not rent – it can be almost always be contributed to one thing – the price is too high.

The bottom line is this, your unit will attract better qualified applicants, will rent faster and for more money if its marketed unoccupied vs occupied

If you have any questions about how we do things or why we do things, please don’t hesitate to contact us!