If you’re getting ready to build your next real estate investment from the ground up rather than buying an existing property, you’ve probably done all your homework. Newly constructed rental housing is a new trend in many areas, primarily where housing prices are beginning to get out of reach for start searching for tenants nowmany in places with a growing economy.

Real estate is indeed local and while national headlines make the news it takes some research when finding the ideal place to build new rather than buy existing. But when the right place is found, it’s time to build as many as quickly as you can. Which brings up another question, if you’re building out to rent and hold, when is the best time to search for tenants?

Say that your builder said the property will be ready seven months from now, that gives you plenty of time, right? Yes it does and if you have several projects going at once you’ll need new tenants to fill them. Yet don’t wait until the property is finished or nearly so before you begin your search. If you’re using bank financing for the construction, you’ll have to replace those construction loans with cash or a permanent mortgage. You want your tenants in the property when the first mortgage payments are due.

That means you need to start marketing your properties now. There is no reason to wait when you could be marketing and taking rental applications while construction is taking place. Remember now every application will be approved, some will fall out due to credit or income issues. And the validation process will take some time, perhaps a week or two just to perform credit and background checks. If you want your real estate agent to begin finding tenants for you then tell the agent to start looking now. You want rental deposit checks, signed lease agreements and your first rental payments the day the homes are ready for occupancy.