Renting out your unit over the phone?

Question

We are in the process of renting out a unit and have been getting a lot of calls about holding the place until the mid-end of the month... Obviously I want it rented asap, but is there a safe and reasonable way to hold and protect myself from loss? ie... non refundable deposit if they decide not to move in or something to that effect... They will likely not want to pay the full rental price a month before they move in.

I would still do the application process and checks , the only differences would be not meeting them in person and there would have to be something to make holding for them work in my favor as well.

Any thoughts about how to make this work or if I should avoid it all togeather? This is my first unit and I am learning a lot from this forum. Please keep the advice coming.

Jon Holdman · Answer

Renting over the phone?  Surely you jest.

Meet them. Let them see the place. Get an application and app fees. Screen them. If they pass, and your market I'd slow, I might agree to a feb 15 move in. I would want a hold deposit equal to the security deposit. If the sign a lease and pay a FULL months rent if feb 15, it becomes their security deposit.  Other wise, it's mine.

Full security deposit and one full months rent to move in. Then just a half month on March 1 pays them up until April 1.

Ann Bellamy · Answer

I would never rent over the phone, but the screening process is the one thing I insist on doing myself.  Meeting them is part of the process.

You open yourself up for the tenant giving you a money order, then asking for a refund because for some reason they gave you too much money.  It's not until after you send them the refund that your bank tells you the money order was fraudulent and you are out all that money.

Military tenants are different, you can check them out and have recourse if they trash your unit.

If you are renting long distance, have someone you trust meet them in person:  your property manager, broker, family friend etc.

Jennifer Lee · Answer

I've never met my tenant in boston BUT its only bc its 12 hrs or a flight away.
And I got a super trustworthy broker almost like my mom there!!

The tenant is a physician with family  my unit is super convenient to the Harvard medical hospitals. They are great. Knock on wood.

But we still screened and credit chk them. My broker Also met with them a few time.

Rolanda Eldridge · Answer

Rented a property 4 times(FL) without meeting tenant 1st 8hr saway.
1) Craigslist Ad, credit check, POI,POR, 4 references, verify rental/job
2) 1st tenant stayed 2 years no problem(met at move out)
3)  2nd ten stayed 1.5 yr broke lease early due to personal(3rd party met)
4) 3rd tenant stayed 2 years(didn't meet before move in)
5)4 6 months into current lease(met before move in)

All good tenants..It really depends on your comfort level and screening process..I'm thorough...

Tamara R. · Answer

I rented a unit over the phone last year without meeting the people and without them seeing the place (just pictures).  They were a military officer and family that were going to be moving to the area for a year and needed a place quickly and were unable to do a house hunting trip.  I did screen as normal, thouroughly checked them out, and had many conversations with them on the phone prior to renting. I also had a couple of other folks at the same time I was considering who were not going to be able to check out places ahead of time either (all military).  They moved in last July and have been perfect tenants.  The only issue is that there couch wouldn't fit down the basement stairs so they had to put it in the kitchen (they may or may not have figured that out if they had looked at it in person).  It all depends on who it is and why they are moving.  For military folks, I wouldn't hesitate to use this process as long as everything else checked out.  After that experience, I have started making video tours of my places as they turn over for placement on You tube, so my prospects will have a better idea of how the houses look.

Greg H. · Answer

While I agree with the above replies,  this property is located in a military town(Ft Hood) and it does happen where people want to rent sight unseen.  I have owned rentals in the area for 20+ years and I would not hold a property for more than a week or two.  People move to town every day and are looking for immediate move in.  Just post on Craigslist every day and have a good description and several pictures

George Paiva · Answer

I agree!  We are very lucky to be witnessed to the games tenants play.  I just sit back and smile when its boldly apparent what they are trying to do.  I've been landlording since in diapers!!!

The only leverage we have is the screening process in the beginning because once they are in they are in.  It will cost you $$$ and heartache when it goes bad in the end.

David Gellner · Answer

I agree with everyone Jon Holdman said. After watching my parents my entire life screen tenants, I could never imagine doing it over the phone.

The risk versus benefit is too great!