management team to screen tenants only?

Question

Have any of you used a management team to screen and find tenants for you, and then you manage the property yourself.  This seems like a good idea for my situation, as I work a full time job.  Good idea or bad?  I believe they charge first months rent, but market and do background checks on the potential tenants.  I'm looking at filling a triplex.  Thanks in advance.

Andrew Schultz · Answer

We offer it as a service along side our other property management holdings. I have one client who owns about 150 units across 4 complexes who uses us exclusively for finding tenants for his properties.  He self manages, so not running around to show and screen allows him the time to handle maintenance tasks and deal with other issues that surround his business.  I also have clients who need 1 time tenant placement because they are not in the area, or just not sure how to screen properly.  Sometimes these convert to full on management as well, which is nice.

Chris Martin · Answer

This is not uncommon. The only advice I would give is to make sure you know exactly what their screening criteria is. Ask for their track record, how many evictions they 'create' by bad screening, how many people they have screened, etc. Make sure they know what they are to provide. Signed lease (on yours or 'standard' form?), keys, signage, advertising, showings, etc. Keep your exclusive showing time short. They should be able to execute a lease in 30 or 45 days max. If they can't perform, move on.

By the way, brokers will not like that you ask questions or 'challenge' their methods. But remind them it is your property.

Options: put in performance criteria (pay 50% up front and 50% after 6 months if the tenant has paid on time each month, 25% if not... 0% if tenant is being evicted), etc. Average brokers will say 'no', confident brokers may agree.