Would you delegate turnover showing to an agent for a fee?

[Meng Chen]

Hi MKE self-managing landlords, I'm wondering about your opinions on having the ability to delegate rental turnover showings or repair coordinations on-demand to a real estate agent for a fee?

My name is Meng, and I'm a self-managing landlord and the founder of a Milwaukee-based software company that's running a pilot program on this concept with a few local landlords. I'd love to get some feedback from our PB community on our project. The followings are some detail and motivations behind it:

Why delegate on-demand for a fee?

Self-managing landlords can save a lot in cash flow without paying property management fees. However, self-management also comes with its downside. For example, when a turnover vacancy timing conflicts with a planned vacation, will you reschedule the vacation or take a longer vacancy? Despite gaining financial freedom, self-managing landlords still lose some level of lifestyle freedom by having to deal with certain things in-person. Therefore, if those in-person tasks can be delegated easily, it brings more lifestyle freedom and makes it possible for someone to self-manage rental properties anywhere. 

In terms of the cost, if you pay an agent to attend your showings for $50 each, you will spend about $250 to have the unit rented (average 5 showings per turnover from our company data). This is significantly less than the one-month-rent insertion fee that most property management charges. Therefore, by doing the marketing, coordination, and application review yourself, which could happen remotely, you can save hundreds to a thousand in just one turnover.

What's for real estate agents?

First of all, attending a showing on behalf of the landlord doesn't really require a license, but we want to use that as a qualifier to make sure the people providing service are professional and knowledgeable. For agents, it can be more than a gig job, it would also be an opportunity to network with local investors and build relationships and network for future client base. 

Thanks in advance for any feedback you may have, and please feel free to DM me for any details or clarification.

[Tim Jacob]

There are a few issues with this.  This is really right up there with those that self manage but trust tenant applicants to see the property by actually giving them the lockbox combo and figuring they will not target absentee landlords and go to the property and unlock a window and break in after the showing after it seems they are gone.  Then you have an eviction.  You are paying barely anything to agents.  Do you understand since many agents are broke they could be one of the squatters or charge someone to pay them a fee so the others can squat in there.  The best thing is to have 1 person you know responsible lease the place and not nickel and dime them.  Pay them what they are worth and have them lease the property.   If the area is in a good area and can attract decent tenants it will not be hard.  If it doesn't then I would lease my myself or offer more than a month rent to the agents or get full pm where the pm will be more incentivized to get a good tenant bc they will deal with them after.    Though the moratorium has come and gone most important is getting the right people in there.  Not figuring a way to nickel and dime the help.  Whether it be realtors, plumbers, electricians, etc.  I think the idea of offering the agent the ability to network won't really do it for them. That feels like getting the ability to work minumum wage.  16 year olds with no skills can have it better.  Being cheap with the help usually ends in failure bc you get what you pay for.