How to Be a Long-Distance Landlord

Being a long-distance landlord involves managing rental properties located in different cities or even states from where you reside. With the increasing accessibility of real estate markets and the rise of remote property management solutions, investing in out-of-state rental properties has become an appealing option for many real estate investors.

What It Means to Be a Long-Distance Landlord

Being a long-distance landlord entails owning and managing rental properties that are geographically distant from your primary residence. 

This can present unique challenges, such as limited physical access to the property, unfamiliarity with the local market, and difficulties in handling tenant issues and maintenance problems. However, with careful planning and the right approach, being a long-distance landlord can be a lucrative investment opportunity.

Effective Tips for Long-Distance Landlords

Conduct Thorough Research

Before investing in an out-of-state rental property, conduct extensive research on the local real estate market. Analyze factors such as property prices, rental demand, job market stability, and economic growth. Utilize online resources and engage with other investors who have experience in the area. Also, study the competition to ensure that you charge the correct rental rates.

Establish a Reliable Team

Building a trustworthy team of professionals is crucial for long-distance landlords. This team should include a local property management company, real estate agent, contractors, and accountant. They will assist you in finding suitable properties, screening tenants, overseeing maintenance and repairs, handling legal matters, and managing finances.

Leverage Technology

Embrace technology to streamline the communication and management processes. Utilize online platforms and software solutions for property management tasks like rent collection, maintenance requests, and lease agreements. 

Video conferencing tools enable virtual property inspections and allow face-to-face communication with tenants and the property management team. This will also be useful to keep you informed about maintenance emergencies. 

Perform Thorough Tenant Screening

Implement a robust tenant screening process to minimize the risk of troublesome tenants. Use credit checks, background screenings, employment verification, and reference checks to ensure you select responsible and reliable tenants who will respect your property and pay rent on time. 

Being selective with your tenants is crucial, especially if you don’t live near the property. You don’t want to rent to someone who may cause damage to the unit or those who are having financial difficulties because chasing after recent payments is something that you cannot do proactively when you are away.

Establish Clear Policies and Procedures

Clearly communicate your expectations to tenants by providing comprehensive lease agreements and property rules. Make sure tenants understand the procedures for reporting maintenance issues, rent payment methods, and any other pertinent information. This reduces misunderstandings and promotes a positive landlord-tenant relationship.

Visit the Property At Least Once a Year

While being a long-distance landlord means managing properties remotely, it is important to physically visit the property at least once a year. 

This allows you to inspect the property, assess its condition, and address any maintenance or improvement needs. Additionally, meeting tenants in person can help build rapport and strengthen the landlord-tenant relationship.

Consider Investing in Out-of-State Rental Properties

There are several reasons why you should consider investing in out-of-state rental properties, including:

• Diversification: Investing in out-of-state rental properties offers the opportunity to diversify your real estate portfolio across different markets. By spreading out your investments geographically, you mitigate the risks associated with a single local market and gain exposure to potentially more stable and profitable markets.
• Better Returns on Investment: Some areas may offer higher rental yields and lower property prices compared to your local market. By investing in out-of-state properties, you can take advantage of potentially higher returns on your investment.
• Favorable Market Conditions: Your local market might face challenges such as oversupply, high property prices, or low rental demand. Investing in an out-of-state market with favorable conditions, such as job growth, population growth, and strong rental demand, can provide better long-term prospects for your investments.
• Flexibility and Lifestyle Choices: Investing in out-of-state rental properties provides flexibility in terms of location. You can choose properties in areas where you would like to live in the future or in popular vacation destinations, allowing you to potentially benefit from the property while it appreciates in value.
• Availability of Professional Property Management: With the available property management companies, owning a rental away from where you live is possible and less stressful. Just make sure to choose the best property manager in your area

Hire a Professional Property Management Company

Hiring a property management company is essential for long-distance landlords. A reputable property management company will handle day-to-day operations, such as tenant screening, rent collection, property maintenance, and emergency repairs.

What to Look For in a Property Manager

When selecting a property manager to handle your long-distance rental property, it is essential to consider several key factors. The right property manager can make a significant difference in the success and profitability of your investment, even increasing tenant satisfaction and preventing damages.

A good property management company will have the experience you need to rest assured they can properly care for your property. They will offer services such as tenant screening, financial reporting, management, marketing, and maintenance services.

A flexible and adaptable management company, like Whole Property Management, will care for your property even if you do not live close. They will be your eyes and ears, running the everyday business of property management and giving you peace of mind. 

Conclusion

Becoming a successful long-distance landlord requires careful planning, thorough research, and the establishment of a reliable support team. Make sure to find the most reputable property management company to help you with all aspects of managing your long-distance rental property. 

With the right approach and support, being a long-distance landlord can be a rewarding and profitable investment endeavor. Contact Whole Property Management for inquiries, and we’ll be happy to assist you.