Getting Prospective Tenants to Trust You When Managing from Afar

General Landlording & Rental Properties
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Getting Prospective Tenants to Trust You When Managing from Afar

Nate S.
Specialist · Harrisonburg, VA · Member since 2011 · 26 posts · 5 votes

Hi all.

Some up-front info. I manage several rentals from afar. I am about 2 hours away from them. 

I just had a property turn over and followed this procedure for the showings:

  • I advertise the property and handle all calls, emails, texts on it and set up viewing appointments (I group them all within 30-45 minutes on one day)
  • The current tenants show the property to prospective renters
  • When someone applies, they email or fax in the application and pay the application fee via PayPal (although I am now trying out Cozy for applications) and I process the application
  • If the application passes, I prepare and email over the lease for signature
  • When the lease is signed and sent back to me, I send over a payment request for the first month's rent (via Dwolla or Cozy)
  • At the check-in, I drive to the property to check them in myself and collect the security deposit in secured funds (or use Cozy to collect it beforehand)

I have been doing the above for a long time and it has worked pretty well. However, on the last two turnovers I have had, I had many prospective tenants not like the fact that they did not meet me at the showing. I got the distinct impression from several of them that they thought they may be getting scammed. With one of them, who applied, it ended up with him asking me to prove I owned the property and going over the lease with a fine-toothed comb (after he missed a couple of deadlines to get things back to me, I moved on and denied him).

I figured the facts that 1) prospective tenants see the property and can talk with the current tenants to ask about the property and me, and 2) that they have to submit an application and go through a credit and background check, and 3) that I was using Cozy to collect payments and 4) that I am available by phone, email and text whenever they want, would be enough to make people comfortable that they are not getting scammed, but it was apparently not enough for some people.

Does anyone have any tips to help prospective tenants feel more comfortable dealing with you from afar and not feeling like they are getting scammed? I know I could turn the property over to a property manager or go in for the showings, but I really don't want to do either of those.

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  • Aaron Treloar
    Vendor · Kalamazoo, MI · Member since 2016 · 93 posts · 56 votes
    10y

    I can completely understand the impression of getting scammed when the tenant is showing the property - because it happens.  A tenant who may be getting evicted can "lease out the home" to someone else, collect the money and disappear.

    There is nothing that makes me more nervous as a PM than a tenant showing the home to a prospect.  You never know what information your tenant is telling prospects and if what they say does not line up EXACTLY with what you advertise you immediately lose credibility.

    You really need, at a minimum, a professional leasing agent to show the home when the current tenants are not home.  This could be a Property Manager or simply a local RE agent who will do it for a fee.

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  • Stacy Patlan
    Indianapolis, IN · Member since 2016 · 24 posts · 2 votes
    10y

    Do you by chance use a website? I would try setting up a generic website to which has your info and maybe pictures of properties for rent. There have been a lot of rental scams where people are breaking into foreclosed homes, changing the locks, getting a couple payment then run off once inforcement arrives. I have been dealing with the same thing though we have a family member who usually arrives at showing. Good luck!

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  • Nate S.
    OP
    Specialist · Harrisonburg, VA · Member since 2011 · 26 posts · 5 votes
    10y
    Originally posted by @Stacy Patlan:

    Do you by chance use a website? I would try setting up a generic website to which has your info and maybe pictures of properties for rent. There have been a lot of rental scams where people are breaking into foreclosed homes, changing the locks, getting a couple payment then run off once inforcement arrives. I have been dealing with the same thing though we have a family member who usually arrives at showing. Good luck!

    Yes, I have an LLC property management company that manages my properties and I do have a web site for it with information on the company, as well as, information on all of the properties it manages. I am looking into making that site more professional looking, as well as, adding a picture and a bio of myself so people know who I am and who they are dealing with.

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  • Nate S.
    OP
    Specialist · Harrisonburg, VA · Member since 2011 · 26 posts · 5 votes
    10y
    Originally posted by @Aaron Treloar:

    I can completely understand the impression of getting scammed when the tenant is showing the property - because it happens.  A tenant who may be getting evicted can "lease out the home" to someone else, collect the money and disappear.

    There is nothing that makes me more nervous as a PM than a tenant showing the home to a prospect.  You never know what information your tenant is telling prospects and if what they say does not line up EXACTLY with what you advertise you immediately lose credibility.

    You really need, at a minimum, a professional leasing agent to show the home when the current tenants are not home.  This could be a Property Manager or simply a local RE agent who will do it for a fee.

    Yeah, I get people's trepidation. But, at some point, you have to trust people.

    I also agree on the potential issues with the current tenants showing the property. I only do that when I have really good tenants in the property that I have a great relationship with.

    I have been unsuccessful at finding a local property management company or realtor that is interested in only showing the property at turnovers and not handling the management afterwards. Even if I was able to find someone, I would likely be paying one month's rent for the service, which means thousands of dollars. The cost far outweighs the benefits for that amount of money.

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  • Stacy Patlan
    Indianapolis, IN · Member since 2016 · 24 posts · 2 votes
    10y

    Okay great! Good luck! I hope all works out. I'm sure the right tenant will come along. The only other suggestion I would have is have someone else other than the tenants at the showing and only collecting money at move in (except app fees).

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