Pre-Leasing for new Construction

PSC

Hello All! I'm hoping someone here has some experience in Pre-leasing. I'm not sure the best way to do it. 

We are adding on new units that are expected to be finished Feb 1st or sooner. We're currently running a pre-leasing special and hoping to have most rented before they are even ready. The owner's are wanting to charge a security deposit + 1st Month's rent. I'm not sure how I should do this in Sitelink. 

If there are any cancellations we will return first month's rent but not their security deposit. 

Should I do it as a future move-in for February 1st, and the owner's agreed if the units are done prior we will give them access and not charge them a pro-rated amount. The problem I see with that is:
1. Their gate code will not be active until Feb 1st. 
2. If by chance someone does cancel, we will not be able to refund 1st month's rent until February 1st (Since it is a future move-in), and then we couldn't rent the unit out to someone else until February 1st since Sitelink Support says we won't be able to move it out until February 1st. 

OR

Input it as a reservation, and charge a reservation fee? Move it in as soon as units are available and credit the pro-rated amount. 
The problems with that:
1. We don't charge reservation fees, we would charge them the amount of the security deposit, but then it wouldn't show up as a deposit, but a "fee." 
2. How would we charge them for the 1st month's rent? 

ANY ADVICE?? 

Orkocean

As someone who rent thru new construction in New Caney last year at a site whatever you do DO NOT let people physically move in before all city inspectors have signed off and given you permission to go "live". The weather delayed our schedules but some areas were done so the owner insisted we go ahead and rent them out to generate the income, well that income went byebye when we had to pay movers to move the people to other units on the property before the city would sign off on the construction.

I would do paid reservations if it was me. If you pre-lease and then your timing changes it's going to be a massive headache. With paid reservations you can put any amount you want in, not just a small reservations fee. So if you want them to pay the 1st month include it in the fee.

i43storage

I'm with @Orkocean.  I have added many buildings to our existing facility over the years.  Add all of your new units into Sitelink, but wait until you get the green light for occupancy before you move anyone into a unit.  Spending the day moving so many people in at once can be great fun. 

PSC

Orkocean said:

As someone who rent thru new construction in New Caney last year at a site whatever you do DO NOT let people physically move in before all city inspectors have signed off and given you permission to go "live". The weather delayed our schedules but some areas were done so the owner insisted we go ahead and rent them out to generate the income, well that income went byebye when we had to pay movers to move the people to other units on the property before the city would sign off on the construction.

I would do paid reservations if it was me. If you pre-lease and then your timing changes it's going to be a massive headache. With paid reservations you can put any amount you want in, not just a small reservations fee. So if you want them to pay the 1st month include it in the fee.

We definitely would not let them physically move into the unit before everything is finalized. Our current property is 100% full, and would love to start pre-leasing the new units. If timing is delayed on the move-in we would give them a credit to their account. The problem with the reservation fee is the fact that we do not want to charge a fee. We want to charge a security deposit + 1st Month's rent. There's no way to charge a security deposit + 1st month's rent in the reservation screen. Or am I wrong? We could charge a fee, but when converted to a move-in wouldn't it still show as a fee, and not a security deposit that needs to be returned? 

As we have a waiting list, we would love to get a head start on the paperwork/money aspect. Not collecting rent when they would not be using the unit. 

I guess if I wanted to do it as a move-in and not a reservation, I could move them in as Jan 1st, and credit January. To avoid risking someone backing out and not being able to move them out of the system until Feb 1st. 

Pat

PSC - where in TX are you?  We are outside Houston, about 25 miles.

ESS

Pat said:

PSC - where in TX are you?  We are outside Houston, about 25 miles.

25 miles which way? I am in Alvin

PSC

We have multiple properties. Houston/Woodlands area. 

Pat

I am in Cypress, NW of Houston.

AKKathie

Wow! Sounds like a headache in the making.  We opened brand new facility also, but only took free reservations.  Good thing because occupancy kept getting pushed back weeks at a time until it was literally 2 months later and then only some of the customers could move in.  Gate wasn't even installed yet and office wasn't even ready so no one on site but construction workers finishing the other building.  

And now, 6 mos later, fall rainy weather has revealed some units with water leakage that needs repair.  Unfortunately, 2 units are rented to couple who moved to China for 2 yrs for a job.  We are praying their belongings are not getting damaged.  As tenants move out of that particular bldg we are finding the leak is all down the back of the building.  Not just a couple units.