A popular trend amongst prospective renters in recent years, especially since 2020, has been commonly known as “sight unseen rentals.” This involves a renter applying to multiple homes at once without having actually visited and laid eyes on the properties themselves before moving in. While this may seem like not a big issue at first as long as the tenant agrees to the arrangement, there are several reasons why this can quickly become problematic for the landlord.
Often, sight-unseen applications come from tenants making sudden relocations and won’t have the time or budget to look for residences once they make the move. Whether for school, work, or personal reasons, the applicant just wants to find a place to call home immediately upon moving to the location. However, this can cause more problems than it solves for the potential tenant and you, the property owner.
The Expectations of Sight Unseen
The general idea behind sight unseen rentals is that the need for an applicant to find a rental quickly outweighs the need to properly vet the property. Virtually all properties for rent now have pictures and often video online so the tenant can see what the property looks like, any potential pre-existing problems, and what it will be like living on the property. The reality is that nothing can fully replace being on the property and experiencing it firsthand. Being physically in the home, inside and out, as well as the neighborhood is needed to set the tenant’s expectations and fully commit to living there.
Despite this, expectations are set based on what they want for their new living arrangement and the impression they are given from whatever visuals are available online of the property. As any seasoned property manager would tell you, these expectations are never met. The tenant never truly saw the home with their own eyes to begin with. So the move-in comes with complaints and issues to solve. Worst case scenario it could even lead to disputes over paying rent or accusing you of false advertising. All of this could be prevented with a proper showing of the property before the move-in date.
The Profit Loss of Sight Unseen
Every property owner’s foremost concern is protecting their income and profits. This is another reason why sight-unseen rentals are a bad idea. A potential problem that causes profit loss is the risk to the well-being of your property. An unhappy tenant who feels misled about their rental is less likely to care about damaging the property, especially if they’re disputing rent payments.
It gives them plenty of time to cause damage, whether intentional or not. You will then be responsible for those repairs once the tenant has vacated. Protecting your investment should be your top priority here, either by avoiding sight-unseen rentals or hiring a property management company that will.
Sight-unseen applications can also be a sign that the applicant is engaging in a strategy called "renter's roulette." This means that they are applying to multiple properties at a time without seeing the properties first, and don't have intentions to sign a lease yet. This can potentially cause profit loss for you in the form of wasted time. Unneeded time with your property sitting vacant can be a huge cost for you as a landlord.
The Dangers of Sight Unseen
One of the greatest risks of sight unseen rentals is applicants trying to push the owner to move into a unit quickly in order to avoid proper screening processes. These applicants will create a sense of urgency and pressure the landlord so they can move into a property as quickly as possible. These can even include an emotional plea related to issues with family or a significant other to further push the landlord, but it is important to not bend to these demands and neglect a proper screening process.
If these tactics aren’t used, applicants seeking to secure a rental this way will appeal to an owner’s wallet. The applicants will deny needing to see the property and offer to pay beyond the asking price to move into the unit as quickly as possible. While it can be tempting to accept the offer, no amount is ever worth foregoing a thorough screening process. This should always be implemented with every applicant regardless of circumstances.
The best case scenario with a client pushing to avoid a full screening process is them hiding something that background checks will uncover. The worst case scenario is they are an applicant attempting to commit fraud using your property. Fraudulent tenants would be looking to lease your unit and then pose as the landlord to rent out the property to someone else and make a profit. These applicants would not care about seeing the property because they won’t be using it themselves.
They also would be looking to rush through the screening process or provide their own credit/employment documents to skip the background checks. It’s critical to your investment to stay on top of background checks every time, or better yet rely on a property manager with a thorough screening process.
Why Sight Unseen Rentals Are Usually the Wrong Choice
The quickness of a sight-unseen rental is almost never worth the cavalcade of risks associated with taking in tenants in this way. Doing the entire process of acquiring a renter is necessary to ensure the long-term success of your property. That’s why it's critical to have a property management company that understands the intricacies of handling tenants, move-ins, and applications.
Chamber Theory was started in 2018 and comes backed with a combined 100 years of property management experience that our president, Tommy Chambers, and his team has. Our property management services are comprehensive and will always ensure that your properties and their tenants are handled the right way.
To get more information on how we can take care of you and your properties, get in touch with our team today.
