Do you allow rental applicants to self show your properties?

General Landlording & Rental Properties
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Do you allow rental applicants to self show your properties?

Ryan Ahlgrim
Investor · Sapulpa, OK · Member since 2013 · 146 posts · 50 votes
I'm assuming most will answer that question with a "no" (or "HELL NO!") but are there any landlords out there who allow rental applicants to view their properties alone without themselves or someone from their property management company present? If so, what's your process? Some of my initial concerns would be: - I want to personally meet the applicants to see if I like them. - What if they damage or steal something? - What if they injury themselves? - What if they just move in and start squatting? - What if they come back later and let themselves in without my permission? At the same time I feel like security cameras and smart locks you control with a smart phone would take care of most of those worries. You could even try using FaceTime with the applicant for an initial phone interview then ask them to text you a picture of their drivers license in case you or the police need to track them down later. I've only been landlording for a few years and so far showings are my least favorite thing. More than half the time it seems like the prospect doesn't show up or call ahead to cancel. The open house strategy doesn't seem to work as well as others lead you to believe. You usually end up hanging out at the house alone for an hour. If I could find a simple, safe, and cost effective way to automate showings, I might give it a shot. I'm curious to hear what other people think of the idea.
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Jeff Filali
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
9y

@Ryan Ahlgrim  I do it all the time on my properties.  Every property has a lock box, and so far I haven't had an issue.  It really helps when you have properties in other markets, and just can't always make the time to be there.  I can see how it could potentially cause some idiot to be a problem, but honestly if someone wanted to tear up a property or be a squatter, the doors being locked isn't going to stop them.  I probably wouldn't do it on a higher end property.

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  • Fred Heller
    Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
    9y

    Funny, I'm reminded of when I lived in the Bay Area and was looking for a new apartment. I found something promising on Craigslist and contacted the property management company. They literally handed me the key and told me to go take a look. I did fill out the application beforehand and they did have a copy of my license. But I thought that was pretty odd and I do not recommend it.

    0Reply
  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Ryan Ahlgrim We tried it twice, and it just didnt fit in our three markets; Tampa, Orlando and Melbourne. I found that we when we have an agent present, our closing ratio of getting the house rented was much higher. Although, I will say that there are markets where it works just fine??? Honestly, I believe that within a few years this will be the norm due to technology.

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  • Kenneth Mooney
    Rental Property Investor · Augusta, GA · Member since 2016 · 348 posts · 171 votes
    9y
    Ryan Ahlgrim interesting question. My PM company actually DOES allow tenants in without someone from PM there. To answer a couple of your questions about hesitation with doing this..... (1) The code to the lockbox is a one time code and it automatically resets to a different code once they put the key back in. (2) if the bottom portion of the lockbox is not put back in within a certain amount of time (15-30min) then it sends an alert to our office saying that they didn't return the key. (3) we have SS card (I think) and license of every single person that goes into a property by themselves. It's definitely not a perfect system but we don't have any issue renting out the vast majority of our houses. The ones that we do have issues with we typically can stem the issue back to the purchase side of things.....I.e. Small bedrooms. It also allows the guy who was showing properties to get more people into our rental properties quicker because he doesn't have to personally show them. Our average numbers per month (for that month) have gone up a good bit....partially due to growth and partially due to the system being more efficient (not perfect) for us.
    3Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    "HELL NO!"

    This is a business like any that requires the business owner to perform certain responsibilities. Looking for short cuts to avoid the responsibilities will lead to only one conclusion. You could allow applicants to enter without supervision and this would be fine until you have that one person that causes a problem, like squatting, and then you will realise how reckless a decision it is to allow a stranger into a property worth tens or hundreds of thousands of dollars unsupervised.

    The reality is that if a owner does not want to do the work or is not interested in doing the work associated with operating their business it would be wise to either hire a responsible property management company or sell.

    As some have indicated there are simple and cost effective ways to do it but safe is not possible.

    1Reply
  • Ryan Ahlgrim
    OP
    Investor · Sapulpa, OK · Member since 2013 · 146 posts · 50 votes
    9y
    Kenneth Mooney what's the name and/or brand of that lockbox you're talking about?
    0Reply
  • Ryan Ahlgrim
    OP
    Investor · Sapulpa, OK · Member since 2013 · 146 posts · 50 votes
    9y
    Kim Meredith Hampton excellent point about the closing ratio. I'll be sure to keep that in mind. Greg S. I agree with you there's risk in allowing an applicant to self show. I also agree running a business requires you to get off your butt and work. At the same time I think automation and stream lining processes can help run your business more efficiently. I think in today's world people (renters) prefer using technology as often as possible. It'll continue to be that way with millennials. We have a immediate care facility in Tulsa now that allows you to FaceTime with an RN rather than drive to their office. They check all your symptoms over video and even call in prescriptions to the pharmacy. So convenient and a great time saver. But think of their risks... What else could you or your team focus on if they aren't having to schedule multiple showings a day?
    1Reply
  • Jeff Filali
    Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Ryan Ahlgrim  I do it all the time on my properties.  Every property has a lock box, and so far I haven't had an issue.  It really helps when you have properties in other markets, and just can't always make the time to be there.  I can see how it could potentially cause some idiot to be a problem, but honestly if someone wanted to tear up a property or be a squatter, the doors being locked isn't going to stop them.  I probably wouldn't do it on a higher end property.

    3Reply
  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    9y

    I don't think I'd be comfortable with people entering alone. Too many things to go wrong.

    Like you, I've been stood up or canceled at the last minute for private showings. So I almost always do open house showings. Yes, there is some time you can be sitting around alone, but it's also a great time to really make sure things are in good shape. On the flip side, you can have multiple people/families visiting at the same time! 

    It's part of the business. Sometimes you gotta spend some time on your business. You can hire a PM if you don't want to deal with vacancies and managing so much.

    1Reply
  • Rolanda Eldridge
    Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
    9y

    @Ryan Ahlgrim...Actually showing allows me to interview the prospect.  I prefer Open House approach..

    2Reply
  • Kenneth Mooney
    Rental Property Investor · Augusta, GA · Member since 2016 · 348 posts · 171 votes
    9y

    @Ryan Ahlgrim ohhhhh the company of the lockbox that we use I'm unsure of. We moved everything over to a new system and part of the new system is the lockbox system I'm talking about. I'll check on the brand of the lockbox and let you know. 

    0Reply
  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    9y

    @Ryan Ahlgrim

    Pay a property management company. The one's that you pay 10% of the gross rents to are usually pretty good and it can be part of their responsibilty. 

    Many people don't "like" showings, but as a previous poster mentioned, that is one key way to "screen" tenants....Obviously if you own hundreds of units or if you live in another state then that is a reason to not personally do showings all the time.

    0Reply
  • Loren Clive
    Residential Real Estate Broker · Paia, HI · Member since 2016 · 479 posts · 311 votes
    9y

    My first question is why would you want to do this?? You're wanting to minimize the showings?

    Schedule an open house in the evening when most people are off work. Post your apartment on CL, hold the house open for an hour, and pick your tenant.

    Another way to minimize showings in only show to qualified applicants, meaning they have to fill out an application and pay a fee BEFORE you show them anything. Motivated tenants will do it.

    1Reply
  • David Zheng
    Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
    9y

    I like to be present, because I find im rather good at pitching the property better than others and I get a good feel of what these tenants will be like

    3Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    I had a property management company I was interviewing once try to convince me that allowing a perspective tenant to view a property without them there was perfectly fine, totally normal, everyone was doing it that way, and since they got a credit card number from them first I was covered. If I had of stayed engaged in the conversation long enough, I would have asked them what I am paying them for then, but instead my response was "NEXT!"

    If you do not like showings and you are DIY landlording, then I'd suggest an open house ... that's only one showing and if lots of people are there at once it can drum up competition. Only works in a high demand rental area, which is the kind you should be investing in anyhow IMO.

    1Reply
  • Bill Pate
    Real Estate Investor · North Ridgeville, OH · Member since 2016 · 97 posts · 81 votes
    9y

    What if the prospective tenant takes the key and then drags some lady into the property and sexually assaults them?  The lawsuit could cause you to have to close the doors all because you don't want to spend a few minutes showing properties?  The gamble is too large.

    1Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    9y

    @Ryan Ahlgrim I have used a property management company for showings that offered this service (Rently). The tenant enters two credit cards and gains a one-time use code for the lockbox. I have researched this and the worst I hear is that people forget to turn lights off and occasionally leave a door unlocked. Of course be selective what neighborhood you use it in. Also you still need to go over and check on the property - like any vacant property. 

    Self showing is nothing new. In the book Landlording on Autopilot, he advocates a system were he gives someone a key and they go view it themselves. He manages hundreds of houses this way and he was a police officer.

    Overall I prefer to show myself, but self showing is a way to potentially reach more people and the risk is low.

    Here is another way to look at the risk. If a thief or squatter wants into your property will they:

    A- Give two credit card numbers to get the key

    B- Kick the door in or break a window to enter

    2Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    9y
    Originally posted by @Bill Pate:

    What if the prospective tenant takes the key and then drags some lady into the property and sexually assaults them?  The lawsuit could cause you to have to close the doors all because you don't want to spend a few minutes showing properties?  The gamble is too large.

    This is a little out there. You are saying a rapist will give two credit cards to get the key, then go abduct someone and bring them back to your property? A much more likely risk is your female property manager or real estate agent getting attacked during a showing. Or even a male agent getting robbed. 

    1Reply
  • Ryan Ahlgrim
    OP
    Investor · Sapulpa, OK · Member since 2013 · 146 posts · 50 votes
    9y

    @Bill Pate, I agree with what @Joe Splitrock said in response. A tenant could do that or even someone I've never spoken with who noticed the house was vacant and kicked the door in. I don't think the point you were trying to make is enough to say no to self showing.

    0Reply
  • Deanna McCormick
    Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    Lots of what ever's

     I have ....but my apartments each have a separate exterior entrance, so no building code..

    Only if vacant, I leave unlocked with lights on in several rooms I ask that they call me once they arrive and I can walk / talk them thru the unit.. Only available to see during day hours 9 to 7. Rarely happens but in case I know my schedule is awful I'll plan ahead to do this. 

    realtors use lock boxes so their is a way to track and approve someone to view a place with ID verification.

    I've lost no time so it's a win.

    1Reply
  • Bill Pate
    Real Estate Investor · North Ridgeville, OH · Member since 2016 · 97 posts · 81 votes
    9y

    @Joe Splitrock I am not saying it's probable, but the opportunity does exist.  Personally I don't have hundreds of units and I like to keep my operation small.  Showing tenants the property to me is entirely too valuable of a tool to give up.  Looking at how clean the inside of their car is when they pull up, how they introduce themselves, and the little nuggets of information they slip and say during the showings tell me a lot.  In my opinion this comes down to risk vs reward.  Not having enough time to show the property tells me you can't handle the work load and are looking to cut corners.  If you can't be bothered to show me the property as a prospective tenant I would wonder what else won't be done after I get the keys?

    1Reply
  • Ryan Ahlgrim
    OP
    Investor · Sapulpa, OK · Member since 2013 · 146 posts · 50 votes
    9y

    @Brian Garlington, I prefer to keep the 10% and self manage. My porfolio is small enough so it isn't a problem.

    @Loren Clive, I'm considering this because showings eat up too much time. Even if you qualify an applicant beforehand, a lot of them just don't show up even when you schedule them in the evenings. I could be doing something better with my time. 

    @David Faulkner, maybe I'm doing it wrong but Tulsa doesn't seem like a high demand market where people are lining up to see an open house for a rental. I've tried open houses and people who say they're coming rarely show up.

    0Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Ryan Ahlgrim:

    @Brian Garlington, I prefer to keep the 10% and self manage. My porfolio is small enough so it isn't a problem.

    @Loren Clive, I'm considering this because showings eat up too much time. Even if you qualify an applicant beforehand, a lot of them just don't show up even when you schedule them in the evenings. I could be doing something better with my time. 

    @David Faulkner, maybe I'm doing it wrong but Tulsa doesn't seem like a high demand market where people are lining up to see an open house for a rental. I've tried open houses and people who say they're coming rarely show up.

    Maybe so, maybe not ... I don't know Tulsa, but if it is like most markets, there are a ton of sub-markets, some of which are in much higher demand than others ... you have to pay up to get into those in demand sub-markets on the "right side of the tracks" but in my experience you usually get what you pay for and a great deal in a great neighborhood will outperform over the long haul with infinitely fewer headaches. To paraphrase and slightly modify Buffett's quote: It's far better to buy a wonderful property at a fair price than a fair property at a wonderful price.

    2Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    9y
    Originally posted by @Bill Pate:

    @Joe Splitrock I am not saying it's probable, but the opportunity does exist.  Personally I don't have hundreds of units and I like to keep my operation small.  Showing tenants the property to me is entirely too valuable of a tool to give up.  Looking at how clean the inside of their car is when they pull up, how they introduce themselves, and the little nuggets of information they slip and say during the showings tell me a lot.  In my opinion this comes down to risk vs reward.  Not having enough time to show the property tells me you can't handle the work load and are looking to cut corners.  If you can't be bothered to show me the property as a prospective tenant I would wonder what else won't be done after I get the keys?

    Sometimes perspective tenants need to look at a property at a specific time that I cannot be there. I have had people relocating and in town only for one day on the weekend and I am not available. I am not a slave to my business, so I like options that don't require me to be there. In general I agree that it is nice to meet people and have a chance to size them up. Really this comes down to convenience. There is also a different mindset in the millennial generation. If they can use a smart phone app to open a lock and look at the property themselves, they actually prefer that in many cases. I would be totally fine with that. I don't need someone walking me through all the features and telling me how great something is. I have test driven cars at dealerships without sales people I found the experience to be more enjoyable. They just photocopied my drivers license. 

    1Reply
  • Bill Pate
    Real Estate Investor · North Ridgeville, OH · Member since 2016 · 97 posts · 81 votes
    9y

    @Joe Splitrock that's a good point.  In my opinion it's always best to gather multiple points of view because there is always something my narrow field of vision will miss.

    1Reply
  • Iverem Rose
    Real Estate Agent · Brooklyn, NY · Member since 2014 · 250 posts · 60 votes
    9y

    @Ryan Ahlgrim

    Id advise against allowing potential renters to view unit without someone representing your interests. That is, unless you have a system like @Kenneth Mooney in place. If you don't want to show the apartments, then its wise to enlist the help of an agent to show and screen on your behalf. I don't know the protocol in your state but in NYC, it's the renter who pays the agent his or her commission

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