Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

49
Posts
23
Votes
Ken M Middleton
  • New to Real Estate
  • Atlanta, GA
23
Votes |
49
Posts

Paying 1st month's rent to PM if you find your own renter

Ken M Middleton
  • New to Real Estate
  • Atlanta, GA
Posted

Hey BP,

I'm looking at getting into my first property management agreement, and I'm pretty sure that I can find and screen a tenant on my own and would only need a PM company to maybe do potential showings for me since I'm not in the area.

With this being the case, is it reasonable to pay the first month's rent if I'm doing all the advertising and screening to get the tenant in place, or is showing the property enough to ask for the first month's rent?

Also, with that being said, has anyone had any experience allowing tenants to see the property on their own with a lockbox (similar to Open Door self-viewing service), or is this a bad idea?

I appreciate everyone's insight on this in advance!

KMM

Most Popular Reply

User Stats

28,164
Posts
41,255
Votes
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,255
Votes |
28,164
Posts
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Originally posted by @Ken M Middleton:

Hey BP,

I'm looking at getting into my first property management agreement, and I'm pretty sure that I can find and screen a tenant on my own and would only need a PM company to maybe do potential showings for me since I'm not in the area.

With this being the case, is it reasonable to pay the first month's rent if I'm doing all the advertising and screening to get the tenant in place, or is showing the property enough to ask for the first month's rent?

Also, with that being said, has anyone had any experience allowing tenants to see the property on their own with a lockbox (similar to Open Door self-viewing service), or is this a bad idea?

I appreciate everyone's insight on this in advance!

KMM

Ken, whatever you negotiate with your property manager, make sure it's clearly spelled out in writing and agreed to with signatures so you don't have problems down the road.

Here's my concern: the most important aspect of property management is application screening. If you're better qualified to screen applications, then I would argue your PM is not worth hiring. 

I occasionally have owners tell me they want to be involved in screening applications. My response? My office screens almost 1,000 applications PER YEAR. Most Landlords don't even screen 1% that many. How would a Landlord possibly have screening skills that surpass mine? They wouldn't, and they are more likely to make mistakes or do something that exposes us to a Fair Housing complaint. 

You should have a PM that is an expert at screening and selecting renters. If you don't, I recommend you look for another one.

  • Nathan Gesner
business profile image
The DIY Landlord Book
4.7 stars
167 Reviews

Loading replies...