Are you considering expanding your rental portfolio outside your state? Do you wonder how to navigate owning long-distance property? If so, this post is for you. Living far away from your rental units puts property owners in a unique position. Many imagine a landlord as a hands-on supervisor overseeing leasing, repairs, and general maintenance.
This article tackles how to handle long-distance property management. Thus, if you want your investments to thrive while you're miles away, stick around till the end. Although, you can bypass the stress and find an expert local property manager to handle every aspect of your rental business.
Modern technology makes long-distance property management significantly more accessible with the latest innovations at our fingertips. While these advancements do not display the need for in-person human interaction, they undoubtedly streamline several processes. These days, landlords can find, screen, and sign leases with tenants they've never met. Here are some technologies that help manage distant properties:
With most tenants starting their housing search online, digital marketing provides access to a broader market. Using the right platforms and hashtags, you can easily make your property accessible to your target audience. Besides, with high-quality images and videos, you can attract as many prospective renters as local landlords. Additionally, virtual tours can help you conduct simulated home viewings.
Many online listing sites also allow potential tenants and landlords to communicate in-app. Thus, you can conduct in-depth interviews or schedule a zoom meeting to make things easier.
Eliminate the need to go from door-to-door with automated payments. Instead of collecting cash or checks physically, you can adopt electronic transfer models. This modern solution is also convenient for the renters because it allows them to leave scheduling and payment to their banks or other financial services. It also makes it easier for you to generate receipts and track payments.
Protect your investments by ensuring you sign a lease with only responsible candidates. Just because you're miles away doesn't mean you have to compromise on your screening process. On the contrary, technology can streamline the screening process in many ways. Some services provide a one-stop solution to cross-check credit reports, identities, criminal records, and eviction history.
If you want to preserve your property and ensure consistent income, tenant screening is necessary. Most tenants tend to repeat patterns, and you can gain much information from their history. Here are the benefits of establishing an online screening process:
As a long-distance landlord, you might not have the luxury of conducting a physical interview or screening process. Thus, if you insist on such a procedure, it would significantly limit your market. Besides, it would also entail spending a lot of money on travel. On the other hand, online screening services are widely available and can help you evaluate all potential candidates for a small fee.
Another advantage of using an online screening process is that they're a lot more convenient. Unlike the more hands-on approach, you don't have to carve out time to follow up on a tenant's references. After inputting all the details required, you can wait for your screening provider to deliver all the information you need.
Finally, an online screening process means a more consistent approach. In other words, you're more likely to scrutinize everyone under the same lens when you use a neutral service. Even the best of us can succumb to inherent biases, which can flaw our judgment and leave room for mistakes.
One of the significant benefits of being a long-distance landlord is the ability to expand to a more affordable market. If real estate is relatively expensive in your hometown, you can branch out to another state. This advantage is also applicable if the housing market in your area is already heavily saturated. Sales call scripts could help you gain some traction, but not as much as tapping into a new area.
Tax-savvy landlords enjoy several tax deductions on their rental properties, including those related to depreciation, wages, and travel, for long-distance property owners, that includes all expenses spent on flight tickets, gas, and other costs.
There's a limit to what you can do as a long-distance landlord. If you want your rental to run smoothly, you'll have to outsource some of your responsibilities to someone else. Since that absolves you from being present physically, it can be less stressful for you, and you feel more like earning passive income.
Research is essential in real estate, as it can determine the success or failure of your business. However, when you invest outside your immediate area, you lose some of your leverage. Thus, investing far away from your site can be a gamble if your research isn't thorough.
As we highlighted earlier, you'll need some help managing your property. That also means relinquishing some power to your representative, which can be disastrous if they're not professional.
Expanding to another market means leaving all your networks behind. You must find competent lawyers, agents, home inspectors, and property managers in another city to help you. Since you'll be in a new territory, that might mean making mistakes before finding the right professionals.
That's a wrap on how to handle long-distance property management. Supervising a rental property miles away from your location is undoubtedly not for everyone. With the unique trails that come with such an investment, it's something you should think deeply about before trying. However, some helpful online solutions and professionals can help if you try long-distance property management.
Accelerate growth with live receptionists and AI.
Accelerate growth with live chat agents and AIGEt Started NOWGEt Started NOW
Contact us at (650) 727-6484 or schedule a call.