Investors occasionally wonder if purchasing a rental property in a city or state other than their own makes sense. Perhaps they want to take advantage of a fruitful rental market in another area, or maybe they’re moving and are turning their current property into a rental.
Compared to landlords who live close to their rental homes, long-distance landlords have particular difficulties when it comes to managing the day-to-day operation. You must develop good management skills to reach your financial objectives if you own properties far away. Thanks to modern technologies and services, investors can buy real estate everywhere to maximize their portfolios. Follow along as we go through some things to think about before embarking into the world of long-distance property management.
Know the Competition
Knowing what's happening in your region is beneficial if you own a rental business. Living far away can be a disadvantage because you have fewer connections to your local community. Updates to governmental regulations and other significant adjustments to local bylaws could impact the rental market. Without being present, it can be too late to assess the competition or recent developments that will impact the outcome of your real estate investment. For instance, if you don't know that your neighborhood has suddenly become a popular spot, you might not change your rent costs to reflect the new situation.
You could also find yourself maintaining a high rental rate even when the economy is struggling, which would lead to tenant turnover and longer periods of vacancy. One of your obligations as a long-distance homeowner is to stay up-to-date with local news so you can be aware of any changes that may impact your rental property.
Address Maintenance Tasks
Being halfway across the country, it’s going to be hard to meet your obligation to
maintain the property in good condition. It’s recommended that you hire a trusted caretaker. When a tenant requests emergency repair services, they can be on call to respond immediately.
It’s also wise to have someone on the ground to keep an eye on units that are vacant. They might offer more common services like mail pickup, acting as a point of contact for renters in the area, checking on the rental, and cleaning out the belongings of tenants who break their agreement or are evicted.
Have a Reliable Team
Working with individuals you can trust is essential, and this is particularly important if you are an off-site owner who requires assistance managing rental property. You must employ individuals who can access your property regularly because you won't be able to. Spend some time talking to those who own the nearby businesses or neighbors. If something seems odd in relation to your property, they can get in touch with you.
Maintain a list of suppliers who can take care of maintenance problems when they occur. Have the phone numbers for a painter, an electrician, a plumber, and, a cleaning crew, among others. In case any legal concerns arise with your property, it's also a good idea to have the contact information of a local attorney.
Maintain Clear Lines of Communication
long-distance owners must create a
clear and dependable communication system with tenants. You need your tenants to be your dependable eyes and ears on the ground because you won't be on-site very often.
It's advantageous to learn about these problems as soon as possible so you can take the appropriate action, whether it's a water leak, broken shingles, or something worse. In contrast, if you wait to visit your house and only collect rent checks, you can be in for a shock.
Ensure tenants get your contact details and other current contact information. Urge your tenants to get in touch with you as soon as a problem arises. You can also think about giving your tenants a call to check in once a month.
Work with a Property Manager
It takes a lot of patience and excellent time management to handle a rental property while juggling other areas of your life, such as work, family, and friends. Although maintaining your property can help you save money, the process takes time. If you are not interested in managing the rental personally, or just do not have the time to care for a property yourself,
hiring a property management business to oversee your rental may relieve the pressure.
Verify the Accuracy of Your Lease
Your rental leasing agreement is one of the most crucial components in positioning you to succeed as a long-distance landlord. Have a local attorney evaluate your lease to ensure it’s solid.
Ensure that it expressly states who is accountable for what, as well as the payment deadlines and late fee policies,
damage assessment, policies regarding
pets and associated fees, and other conditions. In the event of any problems, this will aid in protecting you and your property.
Create Automated Payment Systems
It can be difficult to collect rent from tenants who live in another city or state. You don't want to deal with getting checks or cash in the mail if you're a long-distance landlord. Set up automated payments instead. You're less likely to deal with late payments, making collecting rent easier. Other possibilities include email or wire transfer payment if automated payment is not an option.
Bottom Line
When working as a long-distance landlord, it’s important that you follow property procedures, have a local team that you trust, and keep in contact with your tenants. That said, it can be daunting to manage units from a distance regardless of whether or not you’re
first-time landlord, so it may be in your best interest to hire a local property management company.
Every client at
Advantage Realty Services receives first-rate property management services. We continuously provide compassionate, accommodating services and spend time getting to know each potential property owner's particular needs. We can provide all the services required for a successful investment. We keep tabs on market trends and vacancy rates, research similar rent prices, advertise your rentals both online and in print and so much more. Contact us today to learn more!
