For those who self-manage at a distance, how do you manage keys?

Question

I am seriously considering self managing from several states away. I have nearly every element in place, but I have yet to wrap my head around managing keys to the properties. Specifically, how do I get keys to the various people who will be assisting with managing the properties? I'm not big enough (yet!) to warrant an office where they could be stored.

There has to be a simple solution...I just haven't yet figured out what it is.

Thanks!

There has to be a simple solution...I just haven't yet figured out what it is.

Thanks!

Josh Young · Answer

@Brian Berry have someone buy a lock box and put it on the water pipe on the front/side of the house with some keys in it and just give the combo to people who need it, maybe have someone change the combo every so often if you feel you need to.

Jim K. · Answer

Sadly, we're apparently not going to have that particularly salient discussion.@Brian Berry

You know the old trick where a neighborhood brat would fill a paper bag with dog poop on your welcome mat, light it up, ring the bell, and run? Eventually, no matter how you try to work remote-managing, it always ends up like that. You may get two years, three years, four years out of it, but eventually. you'll wish you never saw the property, and keys will be the least of your worries.But hey, no need to listen to me. in December 2020, I bought an occupied duplex one street over from me that was owned and remote-managed by a guy living in Georgia. The price was $100K. He presented me with two tenants in situ, whom we will call Jamal and Tiffany for purposes of this discussion. Jamal ended up getting Tiffany's boyfriend, Ray-Ray, to move in with him. Then Jamal had to throw him out for stealing his prized vintage comic books. Next-up, Tiffany ODed on fentanyl but recovered thanks to the efforts of local paramedics and Narcan, and Ray-Ray moved in with her, along with another roommate, Janelle. I evicted Tiffany due to drug use (which meant the COVID moratorium didn't apply), and she left me loads on loads of trash in her place, including her VHS fat=fetish porn collection, which showcased such hits as "Life in the Fat Lane 2 -- The Heavy Load." Janelle remained, paying half rent (again, with the COVID eviction moratoriums, I couldn't evict). Jamal then moved in his entire family, including his daughter's baby daddy. That dumpster fire fell apart by itself, thankfully, but Jamal started drinking heavily again.I ended up giving Jamal and Janelle notice, and they finally got out in September and October 2022, just a few months after the moratoriums were lifted. It took eight dumpster loads to empty the duplex of all the tenant junk all the people I've talked about here left behind. I did $12K in kitchen, bathroom, and flooring renovations on each apartment. The duplex now rents for $1900/month and was appraised at $180K last year. I stayed in touch with the former owner for a while, and he repeatedly told me that the only reason he sold was because he couldn't successfully run long-distance evictions on Jamal and Tiffany. When COVID hit, he knew he absolutely had to get out, no matter how much potential profit he lost on the deal.The duplex is very much a solid earner. As long as it's run by me, living one street over. For Georgia-boy...yeah, not so much.From what I understand, you're planning on remote-managing 10+ doors? I really hope you prove me wrong.

Peter Tverdov · Answer

At some point, you need to hire a property manager. It's a cost of doing business the right way. Cannot imagine self managing from several hours away. Just hire a professional and sleep better at night.

Corina Eufinger · Answer

Since you aren't local I wouldn't consider anything other than some sort of Bluetooth or wifi locks.  There are somewhere the tenant would use their key and the contractors would use Bluetooth.  My biggest concern with the lockboxes is a contractor may forget to return them to the lockbox and by the time you figured it out when another contractor goes it may have been months.

Michael Smythe · Answer

@Brian Berry going to go against the PMC recommendations a bit here, but do it logically.

It all depends on the Class of the property!!!!!!

Class A Properties:
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% the more recent norm.
Tenants: Majority will have FICO scores of 680+.Remote Management: Fairly easy. Recommend wi-fi smart locks as you should only have to pay for wi-fi while vacant, then tenant pays. Use onsite lockbox as emergency backup - hire locksmith to install.

Class B Properties:
Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
Tenants: Majority will have FICO scores of 620+, some blemishes, but should have no evictions in last 5 years.Remote Management: Can be done with great planning. Again, recommend wi-fi smart locks as you should only have to pay for wi-fi while vacant, then tenant pays. Use onsite lockbox as emergency backup - hire locksmith to install. Also recommend YOU control bitting codes and give to locksmith, so you are not dependent on locksmith.Class C Properties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should often be used to also cover nonpayment & evictions.
Tenants: majority will have FICO scores of 560-600, many blemishes, but should have no evictions in last 2 years. Verifying previous 2-years of rental history very important!Remote Management: Read @Jim K's post again, and again, and again.

Class D Properties:
Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation
Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
Tenants: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.Remote Management: Just buy lottery tickets or go to a casino and bet big!Make sure you understand the Class of properties you have and the corresponding results to expect.

Alecia Loveless · Answer

@Brian Berry Smart locks.

Ned Carey · Answer

Um why would you even have keys? Are you going to travel there to change the locks?  The people you have on the ground there should be changing locks and managing the keys.

That said why are you trying to self manage long distance?

Elbert O. · Answer

I manage our mid-term rental from about 2hrs away with a combo of wifi lock and lockbox for safety (the U-tec lock was a little twitchy at first but has been fine since).

Alex F. · Answer

@Brian Berry. Wifi lock for the guests and a lockbox with a physical key for emergencies in case technology fails.....

Adrienne Green · Answer

@Brian Berry in some markets you may find a home watch business that will offer keyholder services.  Those are most common in places with a lot of vacation rentals.

Another thing I do: every rental comes with a combo lockbox.  If the tenant won't be home when a service provider needs to come, it is the tenant's responsibility to put a key in the lockbox and leave it on the door.  In my A and B class properties I've never had issues with this.

For turnovers, are you having someone do a final walk-through?  That person could change the combo code, collect keys, rekey, etc.  Your local real estate agent may do this or know someone who can.

Also, check out Landlord Locks.  They have easy systems for rekeying.

For those who self-manage at a distance, how do you manage keys?

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