Lockbox Rental Showings?

Question

Hello!

As many of us know, trying to release units is one of the most time-consuming parts of self-managing properties. I use a combination of brokers and my own time to do this.

However, I really don't like using brokers to do this. Not only is it expensive, but I have trouble finding agents that care enough to get it done properly. It's not all the agent's fault. Leasing units is not a glamourous job, and they only get a one month's rent. It still creates some headaches for me.

I have toyed with the idea of using a combination of lockboxes (the ones that change to combo every time) and security cameras to allow limited showings on some days. My wife doesn't like this idea, and I do have some apprehensions.  I've heard and read post from people who have successfully done it.

Thoughts anyone? Have you tried this?

Drew Sygit · Answer

It's the future!

Think about it - we all want instant gratificaton.

So, how do you do that with showings?

1) Have an online app where prospects can schedule a showing 24/7/365 - you control days & times of appointments.

2) Have an access system that allows unique access codes for each showing appointment.

3) Address potential theft by:- Requiring a copy of acceptable ID- Use geo-fencing to confirm the cell phone used to schedule the appointment is the same one at the property before giving out the code.- Confirm no doors or windows left open during showing, so thief can return later 😣- Security cameras with motion sensors

PMCs are doing this all over the country!

There's a BP member posting about a system they created for DIY landlords.

Paul De Luca · Answer

@Sean McKee

Personally I wouldn't give the lockbox code to renters. There's no accountability for strangers to be respectful of your property, secure all the doors & lockbox, etc. The agent can be held accountable through their broker & have their reputation to maintain.

Sure it can work if you thoroughly screen people, collect their contact information, or perhaps even take a "showing deposit" to be refunded after the showing is done. I think it the location of the property is a risk factor. The cameras and changing the code definitely helps.

Janice Carter · Answer

I would be very cautious about self-guided tours. It may be smarter to find a reliable person you can compensate per showing to maintain better control and oversight.

Patricia Steiner · Answer

So glad to hear about the change in law; not so happy to tell you that it's not as seamless as it sounds. The police hate being put in that position.  Bottom line:

Nothing is easy...the simplified federal tax code is 70,000 pages.  Protect yourself.

Patricia Steiner · Answer

Don't do it...theres' a whole lot of bad that can go wrong when this is done - like damage to the property, the code being given out by the prospective tenant to 'others' to see, the property not being secured upon exiting, theft (they'll even take the dang frig), and this:

"Fraud involving scammers and squatters entering rental properties via lockboxes is a rising, sophisticated scheme where criminals exploit vacant homes and self-showing technology to steal thousands of dollars from unsuspecting renters. These scammers often use high-quality photos from legitimate listings to create fake ads on platforms like Facebook Marketplace or Craigslist, sometimes offering below-market rent to attract victims."  (End)  You can't just call the police to resolve this as the 'occupant' will have a "lease" so you'll be resolving this in court.

How to manage the process:  Only show on certain days and times.  I found that those who are genuinely interested will be fine with it.  It's also a fact, that 'everyone wants what everybody else wants' - so having multiple showings on the same day - people passing each other on the way in and out is a darn good thing.  This way you're also respecting your time, getting to eye ball the people/ask questions, more.

Listen to your wife on this!

Caleb Brown · Answer

@Drew Sygit I like these ideas. I wouldn't give the code without having safeguards in place. I think area it's in will play a factor too. If you require ID, do the extra steps Drew said and have cameras it'll weed out majority of trouble.

Joel Miller · Answer

I would never have done it in the past with an old-style lockbox that hung on the doorknob. But with the advent of locks whose code can be changed remotely with your phone as well as cameras, I would consider it with properties that attract responsible people.

Dan H. · Answer

I do not find it hard to have an open house.  We usually get a qualified tenant in the 1st open house.   We use our handyman contractors to do the open house and are available during the open house to answer any questions that our handyman contractors cannot answer.   A couple hour open house is less than $150 labor (2 people).  They have received some training and do a good job and can answer most questions.

The risk of giving potential tenants unsupervised access to the property is too high compared to any potential savings in cost or effort.

Good luck

Sean McKee · Answer

I agree with all the risk factors. Illinois did just passed legislation addressing the squatter issue. People can no longer claim tenancy and you can have the police remove them.

However, still might not be worth the risk.

Lockbox Rental Showings?

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