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24- hour notice

By
Services for Real Estate Pros with HomePointe Property Management

I recently had a situation in which a home owner that I manage a property for, had asked me to contact the tenants to schedule an appraisal. The owner was planning on refinancing his property and needed the appraisal done as soon as possible so that he could lock in a good rate.

The appraiser contacted me and I gave him the tenant's information to contact them directly. The appraiser called me back a short while later and told me that he did get a hold of the tenants, but they were getting on a plane to start their vacation.

After talking to the appraiser, I called the home owner and explained the situation to him. He asked me to serve a 24-hour notice of entry and go meet the appraiser to do the inspection while the tenants were gone. I initially agreed to do so, as this is the legal way to enter a property if no verbal or written consent is given by the tenant.

I did serve the notice, but on my way back to my office, I starting thinking about the legality of the situation. Is it still legal to serve notice of entry and enter a property when you know the tenants will not receive the notice until after the fact? Is it ethical?

After consulting my supervisor, my conclusion to this matter was, although it may be legal, it is not ethical. I called the home owner and appraiser and explained to them that I was uncomfortable with the situation and we would have to wait until the tenants returned to schedule the appraisal. The owner and appraiser were a little upset, but understanding. 

When the tenants returned, they were very happy that we waited and quite accomodating to allow access for the appraisal. The owner was able to refinance his property. And my conscience is clear.

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Jim Cheney
Saint Francis Property Santa Rosa, CA - Santa Rosa, CA
Rincon Valley Realtor 707.494.1055

Better safe than sorry.  I hope the rates don't change in the mean time:(

May 24, 2009 04:52 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Legal - Yes and ETHICAL =  yes...tenants' schedule is NOT your concern.  They are NOT required to be present for repairs, etc. so why would they need to be present for an appraiser?

I would have had appraiser come to my office for a key and return the key BACK to my office within 24 hours.  As Jim suggests, this is a TIME SENSITIVE issue with rates in flux. 

Your lease should require residents to notify you if they are leaving the property for longer than 10 days AND you should have advised the tenants that while you would like to accommodate their schedule, the appraiser's schedule is also in the mix since the appraiser is not DISTURBING anything at the property - only taking measurements, photos, etc. 

FYI * the only item of concern for me would have been taking pics of the residents' belongings which is why I ALWAYS provide appraisers with photos of property when it is VACANT from my photo files...

 

 

 

May 24, 2009 11:26 PM