Self Managing Out of State SFH

[Kyle Kreisher]

Hello BP Community,

My wife and I are first-time out-of-state investors. We recently went under contract and will close soon on our first SFH rental in the Albuquerque area and we are in CA. We are planning on self-managing using Rentredi and have most of our team in place. One area we are having trouble with is finding someone to show the property to potential renters. Any/all advice would be greatly appreciated.

[Robert Carmody]

You can hire an agent to show the property, or possibly a property manager that you can pay a flat fee for showing it, assuming you are wanting to continue to self manage beyond that. In ABQ, you will find that most of the residential sales brokerages, particularly the big real estate brands, do not handle any property management related services, or don't allow their agents to engage in any sort of work that might be considered property management. Sales and leasing agents hold the same type of real estate licenses here, whether practicing residential sales, commercial sales, residential or commercial leasing. However, the Errors & Omissions Insurance that we are required to have will vary slightly and agents providing property management related services will have a property management rider attached to their policy. If you are hiring someone to specifically and only show the house on your behalf, make sure you have an agreement in writing that outlines whatever specific or limited services they are providing in exchange for the fee you pay them. 

Our single family rental market is very strong right now, and assuming the house is in decent shape, in a decent location, you'll probably have no problem renting it quickly, and with many inquiries. If you haven't done so already, you may want to obtain professional photos and a virtual tour of the property before any tenants move in, along with a floor plan drawing that shows the interior walls and room dimensions. With smart home features, like Ring cameras, smart door locks, and tenant screening software, you might be able to ask prospective tenants to view all photos, the virtual tour, and floor plan prior to requesting a showing. When they request a showing, you can ask each prospective tenant the same pre-screening questions and to send an image of a current photo ID. If satisfied with what they provide, you can schedule the showing and unlock the smart locks remotely and allow them to enter the house on their own to see it. I know the idea of doing that doesn't make everyone comfortable, but then again, how many houses are there that are listed with property management companies who allow the prospective tenant to check out the keys from their office and tour the house on their own?