Posted by: Daryl & Wendy Ashby | July 3, 2010

Occupied or Vacant?

Having one of your properties sit vacant is one of the biggest money sucking problems a real estate investor can face.

As you struggled to rent one of your latest properties out, you will start to really understand the big benefit of locating a tenant prior to taking ownership. That big benefit is not having to worry that the property you just bought might have to sit vacant for awhile while you find it’s future residents.

With vacancy prevention in mind, there is an obvious benefit to showing your properties before you actually own them. Be certain to put it in the purchase and sale agreement that the sellers will allow you to show the home a minimum of three times – each time for 90 minutes – for the purposes of finding tenants. Then only show the homes if you think the prospects look presentable.

As long as the property is clean, in good condition and doesn’t smell badly, you will find that it is usually ok to find tenants with the property occupied. Never show a property that is beat up, really messy or stinky because you will just attract the wrong kind of tenants.

With a variety of lease options there is a greater emotional attachment to the home. There is also a higher standard the home must meet in order to be something the tenants actually want to work towards maintaining.

Yet when it comes to finding a buyer, vacant is better than tenanted. Even though a buyer can see how amazing a house is, there are often just too many issues that are hard to see past when someone else’s stuff is in the way. And – what we’re finding – is that when you advertise it too much, by the time it is vacant you have no momentum left in your advertising to get new interest in the place.

Occupied or Vacant?

Depends on the situation and the lifestyle of the occupants.

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