There are several reasons why you could choose to become a long-distance landlord. Maybe you have to move for work, you can decide to lease your current house instead of selling it. Or perhaps you found a fabulous new investment venture in another city and choose to be closer to it.
Whatever the circumstance, being a long-distance landlord is doable. That said, there are some tips that you’ll need to know in order to find success. You can deal with your investment properties from a distance to expand your portfolio by utilizing the strategies listed below.
Focus on the Competition
As a long-distant landlord, you should keep up with the local news and real estate market in the areas where your properties are located. The rental market is affected by legislative guidelines, the corporate environment, and new infrastructure developments. These changes could have an impact on your property and rental business.
In the event that there are changes to rental legislation, you may find that your property is no longer legally compliant. What’s more, if there are new developments in the area that cause the changes in rent prices, you could find yourself either over or undercharging on rent. Both of which can hurt your bottom line and impact your investment returns.
It’s therefore important to stay up-to-date on local news and watch out for changes in the rental market if you're not living in close proximity to your rentals.
Automate Rent Collection
While working from a distance, more traditional techniques for rent collection probably won't be the best choice for you or your occupants. You won’t be able to pick up the rent and your tenants won't be able to come to you either. Additionally, mailing rent payments can come with a number of risks.
Due to recent advancements in property management technology, rent tracking, and online collection are currently more straightforward than ever. By using online payment and tracking systems, you’ll be able to see who and paid when and what balances are outstanding. This will also make it easier for tenants to make timely payments as they’ll be able to do them online from anywhere with an internet connection.
Pick Your Tenants Cautiously
A fundamental stage of protecting your property is the tenant screening process. This is arguably even more important for a long-distance property owner. A problematic tenant can end up being very costly and are even harder to manage from a distance.
Thoroughly screening tenants provides the possibility to learn about their financial capabilities and overall demeanor. This can help you track down dependable occupants. Look into their credit history, previous landlord references, income sources, and relevant criminal record.
Once you’re able to identify a reliable tenant who will care for the property, pay rent on time and respect the terms of the lease, ensure that you foster a strong landlord-tenant relationship with them to turn them into long-term tenants.
Work with Capable Property Experts
In the event that you can't continually check on your investment property, you want to find a reliable team of local experts. While choosing a property manager, be patient and have high requirements. These people will help pick your tenants and manage them. They will also be able to help you market your properties, respond to maintenance requests and keep your property legally compliant.
When selecting a company, look at their reviews, and speak to some of their current or former clients to get a sense of how they work and ensure that they understand your investment goals. An excellent property management company could help you maximize your ROI while simultaneously reducing your stress as the property owner.
Keep In Touch
Communication between long-distance property owners and tenants can be difficult, however, it’s possible and necessary. Having strong lines of communication with your tenant means that you are always in the loop in regard to what is going on at your property. This will allow you to address issues before they become larger and most costly. It also reduces the chances of an unpleasant surprise when you visit your properties in person.
Your obligation as a landowner is to establish and maintain normal contact with your tenants. You should provide tenants with various means to contact you. Detail what hours they can reach out and how long they can expect a response. You should also provide them with several local emergency contacts in the event that something needs to be addressed right away.
Plan an Annual Visit to Your Rental
Plan a visit to your investment property at least once a year. You'll feel more content whenever you've affirmed that your investment property is in good condition and that your occupants are content. You have an obligation as a landlord to direct an in-person examination of your rental occasionally.
Not to mention, if you're a long-distance landlord, you may be eligible for tax deductions when it comes to traveling to your out-of-state rentals. Your expenses are can be deductible for tax purposes.
Bottom Line
Being a long-distance landlord comes with many responsibilities. That said if you have strong lines of communication established, trustworthy tenants, and a team that you trust on the ground to tend to emergency issues right away, your investments can thrive.
If you would like help managing your rental properties working with a qualified property management company is highly recommended. Our team at Lone Eagle Management can help you market your rentals, screen tenants, collect rent, inspect and maintain the units and so much more. Contact us today for more details on our property management services!