Investor · San Diego, CA · Member since 2012 · 309 posts · 18 votes
Hey guys!
I am looking for a property management (PM) out of state, and I came across this PM that ALLOWS unsupervised showings from a lockbox... I was advised they require the prospective renters to take a pic of their ID and send it to them, and PM in return sends them lockbox number.
What's you opinion on this?
Thank you,
Edita
Real Estate Investor · Hampton, VA · Member since 2012 · 562 posts · 109 votes
13y
Personally I don't agree with that, especially from a PM. If that's the case you can do the same thing..what's the purpose of hiring a PM? How would your property be safeguarded against vandalism/theft/squatters?
Property Manager · Big Bear Lake, CA · Member since 2013 · 585 posts · 330 votes
13y
Never, ever, ever. Problems: They may not lock the doors or windows. They may keep the lock box code and go back later. They might even make a copy of the key. That property manager is just lazy.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
The property manager has to realize that most tenant prospects AREN'T licensed real estate agents, and aren't seeing the place alongside of a licensed agent. If they were, then allowing them to have the lockbox code would be acceptable. But without a licensed agent, there is too much risk.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
13y
As long as you don't care if someone goes in and strips the place down, removes all appliances, sinks, cabinets, mirrors, plumbing fixtures, light fixtures, pulls wires out of walls, and carpet pulled from the floors, etc. I think it's a great idea! Because they're all honest people and the stolen ID's they send are good collateral.
That is THE most irresponsible thing I've ever heard of, and a lawsuit waiting to happen.
Houston, TX · Member since 2010 · 150 posts · 159 votes
13y
Well I have done it once. When I first heard about this technique I thought it was crazy. It allowed me to get a lot more showings and rent the house a lot faster I think. Now, I didn't just let everyone in that called. I know there is no way to judge someone over the phone but I let people in that were well spoken and sounded serious and usually female. I know I shouldn't judge but anyone that called me with a hint of "slang" of any sorts I did not let in. Sorry, you can bash me for that but the way one speaks does tend to tell a story...usually, but not always. I recognize there are plenty of well spoken people that aren't worth one red cent too. I told them it was the contractor lock box and they were in and out all day. I changed the lockbox combo each nite. Didn't have any problems except with lights and fans left on sometimes. The lockbox is good to have because serious renters seem to want to see the inside of the property more than once on different days. I certainly would not do it in a war zone area though. I'm not sure if I will do it again but I will have the lock box there for second viewers. I also change all locks out before a tenant moves in.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
I would be afraid of the professional squatter moving in and then lawyering up. You might have to deal with a lengthy eviction.
Also, there was a guy on here a while back pitching his system of paying a dollar and getting a key code to look at a house unsupervised. I posted on here about the conversation I had with my friend. He has a GF at work. They are both married to other people. He is always looking for locations for lunchtime hookups. He would gladly pay $1 for access to a vacant house. I asked the pitchman how he would handle that and he didn't respond.
Even in Mike Butler's book, he said he had a guy move in once with his key system. The guy moved out without incident, but it could have been a nightmare. I would find a different PM. If this one cuts this corner, what other lazy habits will you find out about later?
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
I'd throw a fit over the guy that does that by phone and fax, no telling who they are. I'd certainly not do the auto pilot thing either.
Any Realtor worth a flip shows a property and when they are done, checks the property to ensure it's locked up, that the back door wasn't left unlocked, etc.
A prospective tenant has little motivation to ensure your property is locked up. They may unlock a window and call a buddy for what ever they can pull out. You'll never be ablse to prove who left that window open! That's nuts! :)
Investor · Dallas, TX · Member since 2009 · 718 posts · 913 votes
13y
I guess I'll be the contrarian here. For what it's worth, I regularly do vacant lockbox on my rentals and it's never been a problem. For me, it's simply a risk/reward analysis. My time is simply too valuable to waste going around showing the units. I've been doing it for years and I've never had a problem with it. Yes, someone could come in and strip the fixtures and a/c unit and whatever else, but this is a risk that comes whenever a unit goes vacant. Frankly, I think it's way more risky to put a "For Rent" sign outside a vacant rental, as this advertises to criminals that no one's home. (I never put a sign out.) Anyone can scope out your rental and come back and loot it later. I suppose at some point I may get bit in the butt for doing this but even if that happens the amount of time and management fees I've saved over the years will make it well worth it. Huge caveat, I generally buy decent houses that rent around 1000-1300/month. I probably would not do this if I was in a really rough part of town. Also, I would never pay a property manager to put a vacant lockbox. That's just ridiculous. Finally, Texas is super landlord friendly so squatter concerns are pretty minimal (I've never heard of anyone having that problem.)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
Two things there John, the rent level usually brings more responsible folks who have a little more going for them. The other aspect is of those types, who'd be stupid enough to mess with an attormey's property? :)
Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
13y
Well I think John Chapman is right that it is a risk/reward thing.
Clearly most of us come down on it is to risky, but that is something we all need to decide.
I personally have put lockboxes on rentals but only let people with agents go in without me, or someone I have meet them.
I think we all agree that we wouldn't pay a PM company to do this for us though!
Multi-family Investor · Warsaw, IN · Member since 2012 · 7 posts · 1 vote
13y
I've done this too frequently. For the low income units I sometimes just leave them unlocked. Worst thing I've ever had happen is a grocery store receipt in the toilet and a front door left open in the middle of winter with the heat running. A good majority of my tenants I never meet until the lease signing. Around here, squatters would be arrested for trespassing, not evicted.
A PM though? No way, that is what they are being paid for. I've actually considering buying some property in rough hoods where I decided I would get a PM to manage, and this was part of the reason, because I didn't want to show vacant units and didn't want to leave them open. I think if you are in a rough hood, the house is a target for vandalism regardless of whether or not it's locked.
Orlando, FL · Member since 2013 · 22 posts · 2 votes
13y
I used a management company that allowed unsupervised showings from a lockbox. They were liable for any damage or theft that occurs to the residence, but it still leaves you with an uneasy feeling if you allow yourself to imagine worst case senarios. It does allow a potential tenant to visit the property at their own convenience - actually my current tenant visited the property after work late one night. It would not have been possible for the PM to show the unit after hours and it saves both parties from hashing out appointments.
Actually my current tenant has been great and has lived there for 3 years now. I say this to let you know positive outcomes are possible from that senario. But it could also be a red flag that the company has too many properties to oversee. I no longer use that company as they were "too hands" off for my liking even though I was only being charged 8%.
Lender · Los Angeles · Member since 2013 · 63 posts · 33 votes
13y
Pretty standard in the southbay area of Los Angeles. Granted the rents are high here, but its not uncommon to look at $2200/mo rental that is unlocked, and nobody is around. Just a stack of rental applications sitting on the kitchen counter.
Pittsburgh, PA · Member since 2012 · 139 posts · 37 votes
13y
Wade Guy i would be very careful about how you screen - your post dances the line of a fair housing discrimination suit. If the housing authority ever got wind of that, it could be very bad news. Your post alone may encourage them to "test" you in that regard. Just a word of caution.
As far as the lockbox issue, if you are managing your property, that is your perogative I suppose, but I what about all the things that could go wrong - what if a crime takes place in your unit while you left the unit open? Guess who's liable. As far as the PM - what is the point of paying them to rent the unit? That's what you are paying them for, otherwise you could do it yourself. Clearly this is a huge timesaver and entreprenuers/REI are all about efficiency, but they are supposed to be calculated risks and the risk on that one, would be a bit too high for me to swallow ----ESPECIALLY if i am paying a PM to get it rented.
Real Estate Investor · Milford, NE · Member since 2011 · 201 posts · 140 votes
13y
I've been basically doing it this way for 10 plus years....Knock on wood I've never had a problem in any way at all. Saves a ton of time and I prequalify them on the phone, ask for ss# and phone number, if its the same as the caller id I assume they're good to go.
Then I always go check the place the same day. But then again I would never do this in a big city, but for NE it seems to work fine....after reading this thread though I may streamline a few things.....
Real Estate Professional · Rockford, MI · Member since 2015 · 301 posts · 138 votes
8y
I thought I would take a minute to jump into this discussion, after seeing several people indicate this would be "lazy " of a PM company. I own a management company and recently we have been using these automated boxes more and more. We have a full-time in-house leasing agent on our staff showing properties Monday through Friday 10-6. With these boxes we now have a leasing agent full-time and an option for prospective tenants during extended hours, and 7 days a week. I disagree that using these boxes makes a management company lazy. We started small and when we noticed the success we slowly implemented more and more boxes. On the contrary of being lazy these boxes actually require a great deal of work, yet they allow tenants to virtually view the house 24 hours a day. We have set limits from 7a-7pm, but these restrictions can be customized. Furthermore instead of only showing the properties between business hours, now tenants who are employed can only view after hours, or on weekends at their convenience. This is actually allowing us to rent properties faster. This doesn't just put money in our pockets, but benefits the owners vacancy rates and ultimately his ROI.