Showing a rental property involves more time and effort than many new landlords anticipate. Here’s a breakdown of what you need to consider when scheduling and conducting property showings:
Time and Expense Breakdown per Showing
- Initial Phone Discussion:
- Plan for 15-20 minutes to discuss the property with prospective tenants.
- Drive to/from Property:
- Allocate 25-90 minutes for the drive, showing inside and outside the property, and discussing its features with the applicant.
- Paperwork:
- Applicants may take 15 minutes to several days to complete paperwork, depending on their readiness.
- Expenses:
- Mileage: IRS allows a deduction of 57.5 cents per mile. For example, a ten-mile round trip would equate to a $11.50 deduction per showing.
- Gas: Estimate about $2.50 per showing for gas expenses.
Total Costs per Showing
- Time: Each showing typically requires about 1.5 hours.
- Car Wear & Tear: Approximately $11 per showing.
- Gas: Around $2.50 per showing.
Importance of Multiple Showings
- On average, it takes 7 to 15 showings to find a quality and qualified tenant.
- Therefore, plan for 10-20 hours of your time, $80-$230 for car wear and tear, and $17-$37 in gas for these showings.
Tips for Efficiency
- Schedule Showings Efficiently: Group showings together to minimize driving time and maximize efficiency.
- Pre-Screen Applicants: Conduct initial screenings over the phone to ensure they meet basic criteria before scheduling a showing.
- Use Technology: Consider virtual tours or detailed photos to reduce unnecessary showings and attract serious applicants.
Conclusion
Understanding the time and costs involved in showing your rental property is crucial for effective property management. By planning ahead, managing your time efficiently, and accurately accounting for expenses, you can streamline the process and find the right tenants while minimizing stress and maximizing returns on your investment. For further assistance, consider using tools like a landlord calculator to help manage and budget for these expenses effectively.
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