What Is a Lease-Up Property? A Guide for Landlords

When you’re bringing a new rental property to market—whether it’s a brand-new development or a recently renovated building—the lease-up phase can make or break your investment’s success.

During this period, your goal is simple: fill units quickly with qualified tenants while building momentum for long-term occupancy and cash flow. But getting there takes more than listing the property and waiting for applications to roll in.

In this guide, we’ll break down what a lease-up property is, what makes the lease-up process different from standard property management, and when hiring a lease-up property manager is worth the investment.

What Does Lease-Up Mean in Real Estate?

A lease-up refers to the phase when a newly built or recently renovated rental property hits the market for the first time. The goal during this stage is to lease all available units as quickly as possible to generate consistent rental income and stabilize the property’s cash flow.

Lease-up periods usually follow construction or major rehab projects. The property has no rental history yet, and marketing, showings, and tenant screening all happen at scale. Unlike a stabilized property—where tenants gradually turn over—lease-up properties need to attract and place dozens of new tenants in a short timeframe. Speed matters, but so does filling units with high-quality renters who will stick around after the initial push.

This phase comes with a unique mix of pressure and opportunity. Handled well, it sets the tone for your property’s long-term performance. Handled poorly, it leads to extended vacancies, lost revenue, and early tenant churn.

Why the Lease-Up Phase Matters for Landlords

The lease-up phase isn’t just about getting tenants in the door—it’s the point where your property shifts from an expense to a revenue-generating asset. Until units are leased, you’re carrying the full weight of construction loans, utility costs, property taxes, and marketing expenses without any income to offset them. Every vacant unit slows your return on investment.

This stage also shapes your property’s reputation. First impressions matter, and the early residents you attract often set the tone for the community and how the property is perceived in the market. Leasing to the wrong tenants just to fill space quickly can create problems later, from late payments to early move-outs.

A successful lease-up also impacts property value. High occupancy rates and solid rental income give appraisers and future buyers confidence in the building’s performance. For landlords planning to refinance or sell, hitting lease-up targets can significantly boost long-term equity.

What Is a Lease-Up Property Manager?

A lease-up property manager specializes in getting new rental properties fully leased and operational as quickly as possible. Unlike traditional property managers, who focus on long-term tenant relations and maintenance, lease-up managers are brought in to handle the short-term sprint of marketing, leasing, and onboarding tenants during a property’s initial launch.

Their role covers everything from pricing strategy and advertising to coordinating showings and processing applications at scale. They understand how to generate buzz, drive traffic, and convert interest into signed leases—all while working against the clock to meet occupancy goals.

Lease-up property managers often join a project before the first unit is even finished. They may help shape marketing materials, set rent rates based on market comps, and prepare leasing systems and staffing ahead of opening day. Once the property reaches stabilized occupancy (typically 90–95%), their work often transitions to a long-term manager—or they move on to the next project.

For landlords and owners juggling multiple tasks or new to large-scale leasing, a lease-up property manager can be the difference between a slow rollout and a fast-moving, revenue-producing asset.

Key Lease-Up Property Management Services

Lease-up property managers bring a focused set of services designed to drive occupancy fast without sacrificing tenant quality. Here’s what landlords can expect during a lease-up:

Market Analysis and Pricing Strategy

A lease-up manager starts by analyzing your local rental market to determine competitive rent prices. They factor in location, amenities, square footage, and target renter demographics to set pricing that balances profitability with fast lease velocity.

Targeted Advertising and Lease Promotions

Getting eyes on your property fast is the name of the game. Lease-up managers create and execute aggressive marketing campaigns—often across listing platforms, social media, and paid ads. They may also suggest lease incentives like free rent for the first month or waived application fees to attract tenants during the early push.

Tenant Screening and Leasing Operations

With volume comes risk. Lease-up managers use streamlined tenant screening systems to vet potential tenants quickly without skipping background checks, income verification, or rental history reviews. They also manage application processing, lease preparation, and digital signing to reduce friction.

Onboarding Tenants and Building Community

Move-ins often happen in waves during a lease-up. Property managers coordinate logistics, prepare units, and resolve early maintenance issues to keep the process smooth. Many also focus on building a sense of community early on—reducing turnover and helping residents settle in.

Reporting and Performance Metrics

Throughout the lease-up, property managers track key metrics like occupancy rate, cost per lease, and marketing performance. They report regularly so landlords know what’s working, what needs adjustment, and when the property is on track to stabilize.

Metrics Landlords Should Track During a Lease-Up

Tracking the right performance metrics during a lease-up helps you spot what’s working, where you’re losing time or money, and how close you are to reaching stabilization. Here are the most important metrics to watch:

Absorption Rate

This tells you how quickly units are being leased over time. A strong absorption rate indicates that your pricing, marketing, and leasing process are aligned with market demand.

Occupancy Rate Over Time

Monitoring your occupancy week by week shows how the property is trending toward full lease-up. It also helps identify periods of stagnation that may call for a pricing change or promotional push.

Cost Per Lease

This measures how much you’re spending on marketing and leasing efforts per signed lease. If this number climbs too high, you may need to adjust your ad strategy or explore new lead sources.

Average Days on Market

Track how long each unit sits vacant after being listed. Longer times may signal that pricing is off or that the unit type isn't aligning with demand.

Conversion Rate from Tour to Lease

How many tours are turning into signed leases? A low conversion rate may point to issues with the property’s condition, leasing experience, or rental terms.

Tracking these metrics gives you a clear view of leasing performance—and helps you make smarter decisions to hit full occupancy faster.

Common Lease-Up Mistakes Landlords Make

The pressure to fill units quickly during a lease-up can lead landlords to cut corners or misjudge market conditions. Avoiding these common mistakes can protect your property’s long-term performance and cash flow:

Mispricing Units

Setting rents too high slows down leasing velocity. Set them too low, and you leave revenue on the table. Many landlords overlook real-time market trends or competitor offerings, leading to a pricing mismatch that drags out the lease-up.

Underestimating Marketing Costs

Lease-ups require an upfront investment in advertising, listing platforms, signage, and sometimes professional staging or photography. Skimping on marketing reduces visibility, resulting in longer vacancies and higher overall costs in the long run.

Rushing the Tenant Screening Process

In the race to hit occupancy goals, some landlords accept the first applicants who show interest. Weak tenant screening leads to payment issues, early move-outs, and tenant conflict that can damage your building’s reputation from the start.

Delaying Professional Help

Some owners wait until the lease-up is already going poorly before hiring a property manager. By that point, damage has been done. Bringing in a lease-up property manager early helps avoid mistakes, streamline operations, and hit occupancy targets faster.

Should You Hire a Lease-Up Property Manager?

Not every landlord needs a lease-up property manager—but if speed, scale, or inexperience are factors, hiring one can be a smart move. The right lease-up expert can fill your building faster, reduce vacancy losses, and set up efficient systems for long-term success.

When It Makes Sense to Self-Manage

If you’re leasing a small number of units, have strong marketing skills, and can dedicate time to tenant outreach and showings, self-managing may work. This approach saves on management fees but demands hands-on effort and quick decision-making.

When to Bring in a Lease-Up Expert

If you’re managing a mid-size or large building, operating in a competitive market, or launching your first rental project, a lease-up property manager brings structure and scale to the process. They already know which strategies work, have systems in place, and can hit the ground running.

Cost vs. ROI Comparison

While lease-up managers typically charge more upfront than traditional managers—often a flat fee, a per-unit leased fee, or a premium management rate—the cost is often offset by faster leasing, better tenant quality, and lower vacancy-related losses. In many cases, hiring one increases your overall ROI.

Real-World Scenarios

• A landlord completing a 20-unit new build with no leasing experience hires a lease-up manager to handle everything from marketing to move-ins.
• An investor expanding to a new city brings in a lease-up expert with local market knowledge to speed up occupancy and avoid missteps.
  

If time-to-income matters—and it usually does—a lease-up property manager can reduce risk and drive results from day one.

Final Tips for a Successful Lease-Up

The lease-up phase sets the pace for your property’s long-term performance. Move quickly, but stay strategic. These tips can help you fill units faster—without sacrificing tenant quality or rental income.

Start Early

Begin marketing efforts before construction wraps. Pre-leasing gives you a head start, builds buzz, and shortens the time between project completion and cash flow.

Set Clear Goals and Benchmarks

Track progress with weekly occupancy targets, cost-per-lease goals, and conversion rates. Knowing where you stand helps you pivot when needed.

Choose Marketing Channels That Match Your Renters

Don’t spread yourself thin. Focus your advertising where your ideal tenants already spend time—whether that’s local listing platforms, social media, or search ads.

Prioritize Tenant Experience

From the first tour to move-in day, create a smooth, professional experience. Positive first impressions reduce turnover and generate word-of-mouth referrals.

Bring in the Right Help

A seasoned lease-up property manager can accelerate leasing, avoid costly missteps, and set up systems for long-term success. If you're not sure where to start, use our free property manager search tool to connect with experts who specialize in lease-up management.