How to Be a Successful Long-Distance Landlord

It makes sense to many landlords to invest in properties near their own homes, but it’s certainly not a requirement. Whether you’ve moved away from the area, or you found a great investment opportunity out of state, you can still be very successful as a long-distance landlord. The key is to outsource tasks and responsibilities. Here are ten ways you can effectively manage your property while maximizing the return on investment on your long-distance rentals.

Hire a Reliable Property Manager

Whether you live 30 miles away or 300, living far away from your rental property means you aren’t able to check up on the property regularly. That’s where hiring a good property manager comes in. Be patient when selecting a property manager, because they will ultimately become the caretaker of your property. Your property manager will be responsible for selecting and interacting with your tenants, as well as addressing maintenance concerns and requests.

Your property manager should have skills in communication, sales, administration, and technology. It’s worth it to pay more for a highly-skilled property manager, who can save you money in the long-run by helping you avoid property damage and problematic tenants.

Make Local Connections

If you don’t have any friends or family in the area near your rental, you should start networking. In case of an emergency, you’ll have someone you can rely on to check on your unit. Attending real estate events will allow you to meet local agents, inspectors, attorneys, or other rental professionals.

At some point, your property will eventually need maintenance and repairs. You may also want to make connections with some of the local handymen, electricians, and plumbers to make sure you have some reliable contacts to call if there are repairs that need to be fixed immediately.

Get to Know the Local Market

Every real estate market is different, so it’s important to understand the local market that your rental is located in. That will allow you to set a competitive price for rent. One good place to start is by reviewing the Zillow Local Market Report for your rental’s location. You can also use Zillow to research comparable homes in the area.

It’s also important to become familiarized with the local laws and regulations, as they can differ from place to place. You may also want to develop a relationship with a local attorney who can help you in case any issues come up. Staying on top of the local news will keep you up to date on any events or situations which may affect your renters.

Review Your Screening Process

Screening is always important, but it becomes even more so when you’re not meeting potential tenants face to face. It’s a good idea to review your screening processes and applications yearly to make sure that you have the right procedures in place.

Have an Ironclad Lease

Your lease is one of the most important factors in your success as a long-distance landlord. You can make sure that your lease covers all bases by having a local attorney (or one familiar with the area) review it. Be sure to clearly state who is responsible for what, payment due dates, late fee policies, damage assessment and collections, pet policies, and any other important clauses. This will ensure your property is fully protected should there be any issues. For tips on how to write a lease, check out Lease Writing 101.

Check in on Your Tenants

Even if you have a property manager, your tenants should feel comfortable talking to you. Developing a relationship with your tenants will also make them more likely to treat your property respectfully. Give your tenants a call or send an email to them every few months to check-in. Ask how they’re doing, if everything is working well at the property. This will allow you to have a good rapport with them and shows that you care about their comfort and needs. If you plan to travel or your tenant plans to be away for more than 3 or 4 days, make an agreement to let each other know so that you’re both aware of why you may not be able to get a hold of one another quickly.

Pay Attention to Expenses

Even if you rely on a property management company, you’ll still want to keep an eye on your expenses. Ask your property manager for a detailed, itemized statement every month. This will allow you to see exactly what you’re paying for. You should also review your property’s statements every month to keep track of repairs or other unexpected situations. You can plan for larger repairs by having an idea of when certain things will need to be replaced and getting local repair estimates. That way, you’ll know the likely costs you’ll be facing and can choose a vendor who can perform the work at a fair price.

Embrace Technology

Even as a long-distance landlord, your tenants will expect you to be available by text and email if they need to communicate. Some tenants may also want the option of being able to pay their rent online. Make sure that you have the technology – and the skills – you need to meet your tenants’ expectations. In some cases, you may be able to write off devices or software as a business expense.

Visit Your Property on Occasion

If you’re able, it’s recommended that you see your property in person a few times a year. Property managers often don’t visit the properties they manage on a regular basis, so there might be maintenance or repair issues that they aren’t aware of. No matter how thorough your property manager is, the best way to make sure you know exactly what’s going on with your property is to see it yourself. In some cases, you may be able to write off your travel costs as a business expense.

Find the Right Tenant for Your Property

Being a long-distance landlord can present some different challenges, but with the right tenants, you may find it’s not much more work than managing a property in town. Screening is an essential process of choosing the right tenant, and our screening services make the process easy. Our reports are available online 24 hours a day, 7 days a week. We offer several packages to help you make the most informed decision possible. Have questions? Give us a call at 1-800-523-2381.


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