Lecture Notes: Listing Rental Properties While Occupied

Speaker Introduction

• Speaker: Judy from Navigate.Company
• Experience: Managed over $500 million in real estate, processed over 15,000 applications, and placed over 5,000 tenants.
• Topic: Reasons not to list a property for lease while still occupied.

Overview

• Listing properties while occupied may seem beneficial for minimizing vacancy periods, but there are significant drawbacks and risks.
• Three main reasons to avoid this practice: Liability, Presentation, and Market Competition.

1. Liability Concerns

• Risk of Holdover: If current tenants don’t vacate on time, the new lease could be compromised.
• Damage During Move-Out: Potential for serious property damage that could affect the new lease.
• Security and Safety: Tenants living in the property during showings can lead to theft, damage, or loss of items.
• Tenant Experience: Tenants may feel their move is hindered by the showing process.

2. Listing and Leasing Presentation

• Property Condition: Reflects the type of tenant attracted.
  • Even clean tenants face disorder during moving.
• Open House Challenges: Difficult to maintain show-ready condition during tenant move-out.
• Ease for Current Tenants: Facilitating a smooth move-out minimizes damage.
• Make Ready Process: Easier to prepare the property for new tenants once it’s vacant.

3. Market Competition

• Visibility: Property should stand out with good presentation and marketing.
• Desirability: Ensure the property visited matches online images to avoid disappointment.
• Marketability & Net Casting: Aim for maximum desirability to attract qualified long-term tenants.

Marketing Goals

• Objective: Attract qualified, responsible tenants who appreciate their living space.
• Strategy: Present a well-maintained and appealing property to potential renters.

Conclusion

• Consider the presentation and tenant experience before listing a property still occupied.
• Resource: Free document available outlining considerations for listing occupied properties.
• Additional Content: Information on the application process is available for interested viewers.
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