Long Distance Showings and Rekeying

[Trenten Ward]

Hello all.  I'm having trouble creating a process around property showings for my out of state rental properties.  I've just create an account with Cozy to handle the application process for the tenant so that part seems like it will work.  The part I'm missing is handling access to the property for showings.  I've been looking into Rently but I wouldn't be able to go to the house to add/remove the lock.  I only have a few properties so I'm not sure if it would be cost beneficial as well.  I'd imagine I'd only have properties vacant less than 4 months out of the year.  I've also looked into smart locks but I wouldn't be able to change the codes remotely since I'm not paying for the tenant's internet.

The other part is dealing with rekeying the property.  Is the norm to rekey the property for a new tenant and have a handy man mail the keys?  Any advice on these issues would be greatly appreciated.

[Nathan Gesner]

If you can't handle putting a lock box on the house, how are you going to handle drive-by inspections or interior inspections? How are you going to investigate noise complaints or an unapproved dog digging up the back yard? Who's going to see if the tenant is parking on the lawn or moving in their six family members? Are you going to hire cleaners you have no relationship with and just trust they've done a good job? Who will document the condition of the home prior to moving in a renter to ensure you can back up damage claims in the future?

I think it would be worth your time and money to hire a professional property manager. Yes, they cost 10% but that's $1,200 a year on a $1,000 rental. One bad tenant can eat up $10,000 without even trying.

You can start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. Regardless of how you find them, try to interview at least three managers

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!