Either by inheritance or investment, a landlord sometimes ends up owning property in a city, state, or country other than his own. Overseeing a distant rental property comes with unique challenges. After all, showings, inspections, and repairs become more complex when handled from a distance. Modern technology, flexibility, and planning will be your keys to success. Read on for ideas to make your out-of-town rental property venture prosperous.
Carefully Select Tenants
The best thing you can do as an out-of-town landlord is to find quality tenants. You can eliminate many potential risks of distant property management by choosing timely, responsible renters that won’t victimize a less hands-on landlord. Establish a thorough tenant screening process and be patient enough to wait for great tenants.
Build a Trustworthy Team
When you can’t be nearby to check on your rental property and respond to emergencies, the next best alternative is hiring a dependable local professional or business. If you don’t have a reliable family member or close friend in the area, network with other real estate investors to locate trustworthy workers. When questions or problems arise, you’ll appreciate having a local electrician or plumber—or even a knowledgeable neighbor—on hand.
Communicate Frequently and Clearly
Living far away from your rental property makes it more critical than ever to communicate well with your tenants. Building a positive relationship will make them more likely to care for the property well and make them feel heard, despite the distance. To minimize confusion, set your expectations clearly at the outset with an iron-clad lease and detailed policies.
Visit Regularly
It may not be convenient, but annual or bi-annual visits to your rental unit are valuable. Even consistent phone calls and helpful neighbors cannot replace a first-hand perspective on your property and renters. Make the most of your visit by scheduling an inspection—following proper notice to your tenants, of course! And remember that your business travel expenses are tax deductible!
Know the Area
Even if you don’t live in the same area as your rental property, you still need local knowledge. Stay informed about the rental market surrounding your unit to keep your prices current and your amenities relevant to your target tenants. Knowing local laws is also crucial to avoiding legal pitfalls.
From insurance coverage to rent collection, forward-thinking should impact every decision involved with owning a distant rental property. But with the right tenants, local contacts, and a game plan, being an out-of-town landlord can be a feasible and profitable endeavor.
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is wholly dedicated to property management, and we’re here to help landlords navigate the rental market.
