Tenant Placement: ZipRent/TurboTenant vs. Using a Realtor?

Question

Curious to hear everyone’s experience with tenant placement services like ZipRent, TurboTenant, etc. versus using a traditional realtor to handle showings and the tenant acquisition process.

For example, ZipRent charges a flat fee of around $1,500, which in my case is roughly 65% of one month’s rent versus the full month’s rent I’d pay a realtor. Their service includes professional photos, market/rent analysis, listing the property, tenant screening, application management, and a remotely controlled lockbox that allows prospective tenants to self-show the property during a 2 window.

Has anyone had good (or bad) experiences using a service like this?

My biggest hesitation is the self-showing aspect. How comfortable are you with prospective tenants touring the property unattended? Will not having someone speak about the property hurt my chances? Any security issues? Maybe I’m being paranoid, but I’m picturing someone walking off with my brand-new appliances 😂.

On the other hand, I’m wondering whether having a realtor physically show the property leads to better results or gets a qualified tenant placed faster. My concern there is scheduling and availability. If the realtor can’t accommodate the times prospective tenants want to see the property, could we be losing good tenants simply because they move on to another property? (I live a couple hours away so i won't be able to show properties on the drop of a hat either)

For those who have tried both approaches:

• Did self-showings increase the number of showings or reduce vacancy time?
• Did you have any security issues?
• Did you notice a difference in the quality of applicants?
• Was using a realtor worth the additional cost?
• Which approach would you use again?

Would really appreciate hearing from anyone who has firsthand experience with either approach.

Thanks!

Drew Sygit · Answer

The MAIN problem with any service is assuming they will handle everything and not verifying EXACTLY how the system works.

You've brought up some good points, but here are several others:

Who will periodically check on the vacant property to confirm no issues?
- Doors/windows left open
- Lights left on
- Faucet left on
- Dirty
Lockbox batteries die?
Keys go missing?
What happens if a showing prospect uses the toilet and doesn't cleanup? (happens often😡)

FYI - we've been doing self-showings for almost 10 years. Biggest reasons:- Our agents couldn't be everywhere to meet prospect demand- Too many no-shows were a waste of time!

Industry statistics show that properties with self-showings rent faster than agent showings and majority of prospects prefer them due to lack of sales-pressure.

You do lose feedback - even though we follow up after EVERY showing with calls, texts & emails, we only get feedback around 35% of the time:(

Additional thoughts:Professional Photos: easy to get, cost should be under $250. - ADVICE: make sure they are slightly edited, get a floor plan (1-time cost) and 3D Tour. Consider virtual staging.Almost 1/3 of our apps are from prospects that never saw the property due to these:)

Market Rent Analysis: Process needs to be defined, otherwise they can just use Zestimate.- ADVICE: make sure they use at least 3 sources!

Listing The Property: Zillow is #1 source for leads, where else are they claiming they will publish?
- ADVICE: Don't just settle for a number of sites! Insist on a detailed list, verify yourself your rental is on them all, negotiate UPFRONT a credit if you cannot verify their claimed sites.

Tenant Screening: actually a higher risk than self-showings! Everyone assumes instead of verifying HOW screening will be done. Many companies use AI - which we've seen cause disasters:( Also, 90%+ of real estate agents are clueless about screening applicants.
- ADVICE: get written details on specifically how screening is done - a minimum credit score and list of documents is USELESS unless you understand how they are processed.

Application Management: guessing this implies they will obtain applications, process them and send out legally required AALs?
- ADVICE: how will they update you on applications received, not completed, withdrawls, nonresponsive, denials, etc.?

Remotely Controlled Lockbox: unless they're using a type used for STR, which requires Wi-Fi, it's NOT remotely controlled. Industry standard is lockbox with pre-setup series of codes that are accessed for showings.
- ADVICE: get the brand and model number to research yourself.

Again, best advice is to make sure YOU UNDERSTAND how everything will work to confirm it meets your expectations and avoid surprises!

NOTE: don't forget to use the Votes hyperlink to say thanks to EVERYONE that took the time to post helpful advice:)

Ashish Acharya · Answer

Carissa, I think the real question is whether the extra realtor fee actually buys you a better tenant or meaningfully reduces vacancy.

For a rental that is a couple hours away, I can see the appeal of a service like ZipRent or TurboTenant because self-showings remove a lot of scheduling friction. I would not be overly concerned about the lack of an agent physically showing the property as long as the lockbox process is secure, access is controlled, and you have clear screening criteria. Most qualified applicants care more about whether the property fits their needs than whether someone personally walks them through it.

I’d compare the options using days-to-lease, number of qualified applications, screening process, showing availability, communication, and total placement cost. If self-showing gets 15 prospects through the door while an agent can only accommodate five schedules, that convenience may outweigh the personal touch.

Whichever route you choose, I’d keep your qualification standards consistent for every applicant and make sure whoever is handling placement follows the same written criteria.

On the tax side, the leasing or placement fee is part of the economics of the rental, so keep those expenses documented. And once the property is placed in service, I’d also evaluate cost segregation. It may accelerate depreciation on qualifying components, but the real benefit depends on whether the resulting rental losses are actually usable in your tax situation.

I’d probably test the more flexible placement option first with clear security controls and switch approaches if the showing-to-application numbers are weak.

Happy to connect!

Adam Bartomeo · Answer

I would not use a "Realtor" in your terminology. Use a property manager. They have access to a lot more resources for marketing the property.

Michael Eskenasy · Answer

Carissa — I think there are actually four separate decisions hiding inside what looks like one decision:

1. How people access the property2. How quickly inquiries get handled3. How applicants get screened4. Who is responsible when something goes wrong

I wouldn’t automatically pay a full month’s rent just to have a human physically unlock the door, and I also wouldn’t automatically trust a cheaper tech-enabled service just because the workflow sounds more efficient.

The winner is whichever system performs better across those four functions.

For me, the most important metric would be speed-to-showing.

If a qualified prospect wants to see the house tonight and the Realtor can’t get there until Saturday, the personal touch may actually be costing you tenants. A secure self-showing system can remove that bottleneck completely.

But the self-showing itself would not be my biggest concern.

My bigger concern would be the operating system behind it:

• How is identity verified before access is granted?
• Is every entry time-limited and logged?
• Who checks the property after showings?
• Who responds when something goes wrong?
• How quickly are leads followed up?
• Exactly how is income/employment/credit/rental history verified?
• What happens to an application that is incomplete, suspicious, or requires additional documentation?

How is identity verified before access is granted?

Is every entry time-limited and logged?

Who checks the property after showings?

Who responds when something goes wrong?

How quickly are leads followed up?

Exactly how is income/employment/credit/rental history verified?

What happens to an application that is incomplete, suspicious, or requires additional documentation?

That’s where I think Drew’s point is important: you can outsource the work, but you really cannot outsource understanding the process.

And Chris’s ZipRent experience in this thread would matter to me too. A sophisticated self-showing system is useless if the company operating it takes 48+ hours to answer basic questions or can’t get the property listed promptly.

Personally, I’d be completely comfortable with self-showings if the access controls were strong and the property was being monitored. I’d probably be less comfortable paying a premium for an agent whose primary value proposition is simply being physically present at the showing.

The Realtor earns the extra money if they can demonstrate something beyond opening the door:

better pricing, better merchandising, faster lead response, better screening judgment, better conversion, or materially shorter vacancy.

Otherwise I’d rather put the savings toward excellent photos, floor plan/3D tour, strong screening, and a very good access/lead-management process.

One other thing I’d measure after the fact:

cost per occupied day, not just placement fee.

Saving $800 on leasing fees is irrelevant if the cheaper process adds two weeks of vacancy. Conversely, paying an extra $800 for an agent is hard to justify if self-showing gets the same qualified tenant in the door ten days faster.

That’s the number I’d optimize.

So my vote would be: don’t choose Realtor vs. self-showing based on which feels safer or more traditional. Make both sides explain their exact process, response times, controls, and results — then pick the better machine.

Chris Tessmann · Answer

Attempted to use ZipRent for the last month or so to get a listing up. I still don’t know if they actually have people working there or if it’s all AI. Either way, couldn’t get a response about different things in 48 business hours multiple times, they scheduled an intake then rescheduled it basically same day without asking about it. Got put to a manager after saying I want out and the same exact thing happened. Blaming unresponsiveness on too many inbound inquiries and increased marketing and that calls in are better than text or email. (Apparently there are more people answering phones that can’t be switched to answering emails or texts.) when I did get responses it was people asking for written consent on the photos I have when I was sharing emails, screenshots, and even the folder the former PM created and sent to me containing listing photos.

Had high hopes but, after a month of back and forth and not being able to even get listed, don’t have any confidence at all they’d actually be able to perform even the most basic of functions that a PM should be able to.

Andrew Severino · Answer

@Drew Sygit  I have wrestled for a few years about self -showings with remote lockboxes. I've been nervous to try to be honest. IT is the only pain point in my business after over 30 years. Wasted time on showings drives me crazy. I just want to be clear, are you suggesting that the only lockboxes you would consider for self showings are remote lockboxes that require wifi, and are there any methods you require r apps you use to verify identity prior to allowing the self showing?

Drew Sygit · Answer

No.

We don't use those as our owners don't want to spend funds on the underlying internet connection needed to support Wi-Fi.

We used to use Codeboxes (you can Google them), but got tired of keys going missing - which often required us to rekey for security at our cost (can't charge owners for that!).

We switched to a keyless system 3+ years ago that works similar to Codeboxes w/o Wi-Fi/internet.

If you're still worried about self-showings at LEAST use software that allows self-scheduling!

Most allow each agent to enter a repeating or unique weekly availability schedule that can even be customized per property. Or you can assign scattered properties, but build in minimum drive-time between appointments.

Most of these systems also automate email and/or SMS confirmations and will auto-cancel and inform agent if prospect doesn't confirm.

DM me if you'd like to chat.

Tenant Placement: ZipRent/TurboTenant vs. Using a Realtor?

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