How do you verify that PM showings are actually happening?

Question

I am a new out-of-state investor and so far am not happy with my PM. It took them over 3 weeks to post one of my units, which was ready to go as soon as I signed with them. They also sent me a bill for $1,245 to for changing all locks and knobs on the unit (6 doors) when the doors only needed rekeying. Most recently, they have been saying that there have been 1-2 showings per week with no applications. How do you verify that showings are actually happening? Any ideas for this situation? It's fine if people walkthrough and don't like the unit, but I have just lost trust in this PM and don't believe these showings have actually been happening.

Thanks in advance for any input!

Drew Sygit · Answer

Installing cameras could help, but what if PMC just sends workers posing as prospects?

Same goes for taking pics of prospects.

Then the BIG problem - what if they are following the industry trend of self-showings?

Replacing all the locksets is EXPENSIVE, but so is a locksmith that would just rekey the doors. Replacing the locks is more material costly, locksmith more labor costly.- Better option is replacing handsets with passge knobs ( no keys) and only reketing/replacing deadbolts going forward. NOTE: how much extra protection is there with both handset locks and deadbolts? Having both won't stop someone from kicking in a door, prying a door open, picking locks or drilling them out. So why pay for both?

November-January is the slowest time for real estate sales and rentals. Go Google it!

Caleb Brown · Answer

$1,245 seems high, was there other work included in that? Did they confirm the work before billing you? There are a couple red flags so you could chat with a couple other PM's, avoid getting into leases if you are unhappy with the PM.

Not justifying the PM but playing devils advocate on a couple things you said - 1) Many times you might think the unit is rent ready but there could be misc. things to do. Add in the holidays/weekends and 3 weeks could be on par with other companies 2) The holidays and Winter makes renting slow down. I would expect the activity to uptick this week and onward.

Adam Bartomeo · Answer

If has come you installing cameras or having them take photos of potential tenants, then you should just break the property management agreement.

Spence W. · Answer

This hits close to home, Tove. I'm also a new OOS investor and PM trust has been the single biggest thing I've been trying to figure out before pulling the trigger on my first property.

What's helped me is shifting from "how do I monitor my PM" to "what did I agree to in the contract that makes me dependent on them in the first place." Things like - can I contact tenants directly? How long can they hold my funds after termination? What's the early exit penalty? I found some PM contracts basically make it harder to leave than to stay, even when performance is bad. That's the real leverage problem.

The showings question is worth solving, but the bigger issue is whether your contract gives you enough leverage to hold them accountable - or walk away if you need to.

Theresa Harris · Answer

As others said, you have the holidays in there (and winter in some areas is harder to find tenants) and for the doors, you have 6 of them, so that is about $200 a piece.  Not sure what re-keying runs down there.

Not sure why it took them 3 weeks to get things listed, but you could ask them.  If you are really worried about them doing showings, go there and pose as an applicant to see what they do.  It will also give you a chance to go through the units.

Chris Seveney · Answer

add security system with cameras or something on the doors to see when being opened

How do you verify that PM showings are actually happening?

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