In Practice
Preleasing means a prospect signs now for a unit that will be ready later. In a new community that can be months ahead of delivery. In an existing community, it means leasing a unit that has a notice to vacate on it, so the next resident is lined up before the current one leaves.
Teams track preleased percentage on the weekly report, alongside occupancy. High preleasing on units coming vacant means shorter downtime and a smoother turn. In lease-up it signals demand before opening day and helps the owner and lender see the building is on pace.
Example: a 120-unit building has 12 units on notice. The team pre-leases 8 of them, so those units go from move-out to move-in with little vacancy. The other 4 become the focus of that week's marketing and pricing.
Common mistake: promising a date you cannot keep. Delivery dates slip. Be honest about the estimate, explain what happens if the unit is late, and follow your company's policy on deposits and holds. Check state and local rules on holding deposits and lease start dates.
Not to Be Confused With
Preleasing is signing leases ahead of availability. Lease-up is the full filling period of a new or renovated property, and preleasing is one part of it.
Preleasing: Common Questions
What is preleased occupancy?
It is occupancy that includes both current residents and signed leases that start in the future, usually shown as a percentage of total units.
How is preleasing different from lease-up?
Preleasing is signing leases before units are available. Lease-up is the whole period of filling a new building, and preleasing is one part of it.
