Why You Should Avoid Listing Properties While Occupied

August 31, 2024

by: judy & ernesto andujar

While listing an occupied property might seem like a strategy to reduce vacancy periods, it often comes with significant drawbacks. These include potential liabilities, presentation challenges, and competitive disadvantages in the rental market. Here’s a closer look at why this approach may not be ideal:

1. Liability Concerns
Listing a property while tenants are still living there can create risks such as:

Holdover Issues: If tenants don’t vacate as scheduled, it can jeopardize new lease agreements.
Move-Out Damage: Current tenants may inadvertently cause damage that complicates the next lease.
Security Risks: Showings while tenants are present can lead to theft or property damage.
Tenant Discomfort: Showings might disrupt the tenant’s move and sour their overall experience.
2. Presentation Challenges
The condition of your property is key to attracting quality tenants, and listing it while occupied can impact this:

Property Appearance: Even tidy tenants struggle to maintain a show-ready environment during the moving process.
Open House Difficulties: It’s harder to showcase the property’s potential when it’s occupied.
Simplifying Move-Out: Allowing tenants to vacate before showing the property ensures a smoother transition.
Preparation Time: A vacant property makes it easier to complete repairs and present the space in its best light.
3. Market Competition
Standing out in a competitive rental market requires thoughtful marketing and presentation:

Strong Visual Appeal: An empty, well-maintained property is more visually appealing to potential renters.
Consistency: Ensure the property matches the images and descriptions used in your marketing materials.
Marketability: A well-presented property attracts more qualified and responsible tenants, increasing the chances of securing long-term renters.
Marketing Strategy
To attract reliable tenants who value their living space:

Present the property in its best condition, free of tenant belongings.
Prioritize repairs, touch-ups, and staging to create a welcoming impression.
Conclusion
Listing a property while occupied may seem convenient, but the risks and drawbacks often outweigh the benefits. Focusing on tenant experience, liability management, and property presentation ensures better outcomes for landlords and tenants alike.

Resource for Landlords
For a detailed guide, download our free document outlining the risks and considerations of listing occupied properties. Interested in learning more about the tenant application process? Explore additional resources available now!