I am an out-of-state investor living 1500 miles away from three properties that I am currently renovating to rent or to flip. I am considering the pros/cons of doing this without a property manager or real estate agent. It is a bad idea to screen and then show homes with a smart lock code that I can change? If I use inside webcams, ring cams, and smart locks, is this a possible way to show homes to prospective renters or buyers? What do you think?
1. Yes, I some landlords are taking that kind of approach and it may be working for them, BUT a broken clock works for me twice a day! Just because it has worked doesn't mean there aren't downsides and risks.
2. There have been news reports all over about squatters. Once they are in the property, you run the risk of them squatting the place. You might be able to mitigate that with the webcams, BUT if the webcams stop working will you call the police and notify them that your webcams stopped working? I doubt that is a call they want to act on.
3. When you say that you will "screen" prior to showing, does that mean a full application with backrgound and credit checks? If so, that could lose you some good tenants.
A good tenant is someone who works hard to have more choices in life. If some landlords are requiring them to pay application fees before they even know they want a rental versus ones that don't which do you think they will choose. They may look at 10-15 rentals and if applying ahead is required they might be spending a full months rent on applications and not like any of the places.
4. Have you investigated any local rental ordinances? Some places (including my own market) require an out of area owner to use a local property manager. They want someone who is physically local that can be responsible for issues that come up.
If you are required to hire a property manager anyways, might as well just pay them to do the tenant placement.
U do that in Jackson MS and your house will be stripped of everything and anything of value full stop.
1. Yes, I some landlords are taking that kind of approach and it may be working for them, BUT a broken clock works for me twice a day! Just because it has worked doesn't mean there aren't downsides and risks.
2. There have been news reports all over about squatters. Once they are in the property, you run the risk of them squatting the place. You might be able to mitigate that with the webcams, BUT if the webcams stop working will you call the police and notify them that your webcams stopped working? I doubt that is a call they want to act on.
3. When you say that you will "screen" prior to showing, does that mean a full application with backrgound and credit checks? If so, that could lose you some good tenants.
A good tenant is someone who works hard to have more choices in life. If some landlords are requiring them to pay application fees before they even know they want a rental versus ones that don't which do you think they will choose. They may look at 10-15 rentals and if applying ahead is required they might be spending a full months rent on applications and not like any of the places.
4. Have you investigated any local rental ordinances? Some places (including my own market) require an out of area owner to use a local property manager. They want someone who is physically local that can be responsible for issues that come up.
If you are required to hire a property manager anyways, might as well just pay them to do the tenant placement.
1. Yes, I some landlords are taking that kind of approach and it may be working for them, BUT a broken clock works for me twice a day! Just because it has worked doesn't mean there aren't downsides and risks.
2. There have been news reports all over about squatters. Once they are in the property, you run the risk of them squatting the place. You might be able to mitigate that with the webcams, BUT if the webcams stop working will you call the police and notify them that your webcams stopped working? I doubt that is a call they want to act on.
3. When you say that you will "screen" prior to showing, does that mean a full application with backrgound and credit checks? If so, that could lose you some good tenants.
A good tenant is someone who works hard to have more choices in life. If some landlords are requiring them to pay application fees before they even know they want a rental versus ones that don't which do you think they will choose. They may look at 10-15 rentals and if applying ahead is required they might be spending a full months rent on applications and not like any of the places.
4. Have you investigated any local rental ordinances? Some places (including my own market) require an out of area owner to use a local property manager. They want someone who is physically local that can be responsible for issues that come up.
If you are required to hire a property manager anyways, might as well just pay them to do the tenant placement.
U do that in Jackson MS and your house will be stripped of everything and anything of value full stop.
Wow Kevin! Excellent response. Thank you for taking the time to respond with your wisdom. All of your responses were very helpful. Thank you very much for helping me on this new journey!
1. Yes, I some landlords are taking that kind of approach and it may be working for them, BUT a broken clock works for me twice a day! Just because it has worked doesn't mean there aren't downsides and risks.
2. There have been news reports all over about squatters. Once they are in the property, you run the risk of them squatting the place. You might be able to mitigate that with the webcams, BUT if the webcams stop working will you call the police and notify them that your webcams stopped working? I doubt that is a call they want to act on.
3. When you say that you will "screen" prior to showing, does that mean a full application with backrgound and credit checks? If so, that could lose you some good tenants.
A good tenant is someone who works hard to have more choices in life. If some landlords are requiring them to pay application fees before they even know they want a rental versus ones that don't which do you think they will choose. They may look at 10-15 rentals and if applying ahead is required they might be spending a full months rent on applications and not like any of the places.
4. Have you investigated any local rental ordinances? Some places (including my own market) require an out of area owner to use a local property manager. They want someone who is physically local that can be responsible for issues that come up.
If you are required to hire a property manager anyways, might as well just pay them to do the tenant placement.
@Jay Hinrichs. Thank you for that insight Jay. Appreciate the feedback. Hadn't considered that, so that just saved a few years off my life. Thanks again!
@Jay Hinrichs. Thank you for that insight Jay. Appreciate the feedback. Hadn't considered that, so that just saved a few years off my life. Thanks again!
I spent years there in Jackson did probably 1000 flip loans to locals and owned at one time 200 sfrs.. Theft is a HUGE issue there .. I sold out years ago and it was the best thing I ever did. unless your up in Madison or by the REsivour in prime areas Getting houses stripped is a major issue and letting folks just walk in is insanity in those markets NO LOCAL would remotely consider that.
@Jay Hinrichs. Hi Jay, I just saw your response. Wow, thank you. Can you tell me more? I have three homes that I am currently renovating. One in Madison, one in Ridgeland, and one in North west Jackson. I am taking your advise, and switched my game plan to include a local agent or property manager to show the properties. Thank you for advising the areas you recommend. You've spent an incredible amount of time and resources in Jackson based on your figures. Why did you choose to leave, and where did you go next?
@Jay Hinrichs. Hi Jay, I just saw your response. Wow, thank you. Can you tell me more? I have three homes that I am currently renovating. One in Madison, one in Ridgeland, and one in North west Jackson. I am taking your advise, and switched my game plan to include a local agent or property manager to show the properties. Thank you for advising the areas you recommend. You've spent an incredible amount of time and resources in Jackson based on your figures. Why did you choose to leave, and where did you go next?
Madison and ridgeland basically are fine.. North west jackson can be block to block.. I sold all my SFR rentals in that markets as collecting rent and keeping houses in good shape was just too tough.. ( thats jackson proper) as I said madison and Ridgeland will be fine.. But I still would not let potential renters in without someone there.
@Jay Hinrichs. Thank you Jay! It seems you're doing quite well with what you've developed over the years. Congrats to your success! Thank you for your insights and help with walking me through this new venture for me.
@Jay Hinrichs. Thank you Jay! It seems you're doing quite well with what you've developed over the years. Congrats to your success! Thank you for your insights and help with walking me through this new venture for me.
No problem.. what I did with my ridgeland and Madison rentals and I had bought 12 new builds for the Gozone tax bene's post Katrina.. I used a RE agent to show vette and place tenant for the first months rent.. then I self managed.. I had a good handyman on speed dial. Being the highest quality locaitons in all of MS or at least central MS you get the very best tenants.. then my office staff handled the monthly collections.. so hybrid. I had over 200 sfrs in jackson proper all C and D class U want to think they are B s but not really in all but one area of the city of Jackson and a ton of section 8.. those were a nightmare.. I sold out years ago and its was the best thing I could have possibly done.. Very difficult area to be a landlord.
Tenant base is lifer tenants. very tough on the houses theft is rampant you leave a home vacant for more than a few days and you HVAC AC unit will take a walk Kids break in and trash them. YAZOO Clay screws up the foundations big time. And lastly with those homes they were built so cheap in many instances they are just functionally obsolete and take way more maintenance than other areas of the country.
I am an out-of-state investor living 1500 miles away from three properties that I am currently renovating to rent or to flip. I am considering the pros/cons of doing this without a property manager or real estate agent. It is a bad idea to screen and then show homes with a smart lock code that I can change? If I use inside webcams, ring cams, and smart locks, is this a possible way to show homes to prospective renters or buyers? What do you think?
You're gonna get your houses robbed a lot. They'll steal your copper, hot water tanks, furnaces and electrical wiring.
Hey Steve! Technology has come a long way, however, having a someone you trust locally will give you peace of mind while leasing your properties. Especially in the Jackson area. A good PM partner that knows the area well will ultimately help set you and your investment up for success. Jackson, Madison, and Ridgeland offer great opportunities for successful investments. I work with many out of state investors that invest in these areas and would love to talk with you more about it! I will reach out to you directly.
There is a risk but one thing you can do to minimize is to have them provide information - full names, address, where they work, etc. Before providing lock info, check them out first.