Owning a rental property is one of the most lucrative investment strategies if you plan to venture into real estate. Did you know that being a rental property owner means you can invest anywhere, and you’re not limited to your home city?
In fact, there are several reasons why many real estate investors invest in out-of-state properties and those that are outside of their home cities. If you want to be a successful real estate investor, you may also consider being a long-distance landlord. For one thing, there may be more profitable real estate markets outside of your home city.
If you are open to investing outside of the location where you live, you might find more lucrative opportunities waiting for you. Another reason is that you might find a great deal outside of your city that is difficult to say no to.
Some landlords also end up being remote rental property owners because they may need to move to another city or state and would want to rent out their old homes. But whatever your reason is, there is always a way to own a rental property in a place that is far from where you live.
With the availability of advanced technology, it’s easier to oversee how your rental investment performs even if you’re not there physically. Whether you already own an out-of-state rental property or are still planning to buy one, being a remote landlord is entirely possible. Make sure to keep these tips in mind:
1. Choose your tenants carefully
Whether you are living in the same city or you’re a remote landlord, choosing your tenants carefully is very crucial to a rental business. As a landlord, it is your responsibility to ensure that your tenants undergo proper tenant screening.
However, if you’re not living in the same location as your rental property, this process should be stricter and more rigid. In fact, it is critical that you rent out your property only to trusted renters.
Since you cannot do a quick check-in to inspect your property from time to time, you have no room for error when it comes to choosing tenants. As it may take weeks or months before you could visit your property, you need to ensure that you only accept trustworthy and highly qualified renters.
Conduct proper credit and financial background checks when screening tenants and verify their rent history to ensure that you won’t be faced with unnecessary problems later on and perhaps even have long-term tenants.
2. Keep your communication lines open
Even if you are a remote landlord, you are still responsible for your rental property and your tenants. As a landlord, it is your responsibility to ensure that the rental home is habitable and meets the standards required by local law. This is the reason why you need to establish clear and consistent communication with your tenants.
Keeping your communication lines open can help build a healthy landlord-tenant relationship. In addition, tenants will have an easy way to reach you when they need to report essential maintenance and repair issues. Make sure to provide tenants with your updated contact details, like phone numbers and email addresses.
Also, encourage tenants to contact you right away whenever there’s a problem. You don’t want the problem to become bigger before you should know about it. It’s essential to address any issue as soon as possible while it’s not yet too costly to resolve.
3. Make sure to visit the property annually
Visiting your rental property at least once per year is important so that you’ll know the state of your property and if tenants are maintaining its upkeep. While traveling to the place where your rental property is located can be costly, it will be worth it.
After all, your travel costs to your out-of-state rental property may be fully tax deductible under the US tax law. You can deduct the cost of plane tickets, hotel stays, meals, and mileage from the income you earn from your rental property.
You can use this tax benefit to ensure that your property is still in top condition. You should also check with your tenants if they are still satisfied with their stay. In-person property visits are important if you want your investment asset to remain in its best condition and maintain (or increase) its value.
4. Always study and get updated about the market
As a rental property owner, you need to ensure that your property stays ahead of the competition if you want to remain profitable. However, it’s easy to get disconnected from the rental demand in the area if you don’t live in the same location.
To remain connected to the community where your rental home is located, you need to study the rental market and stay updated with the trends. A few things that you should stay on top of are demographic changes, government policies, market trends, rental demands, and business opportunities.
These changes can greatly affect the rental market, which means the market can fluctuate and so the rental rates will also change. If you don’t stay abreast of the changes in the market, you could end up missing some great opportunities. Always renovate your property to stay competitive.
5. Make sure you can access local resources easily
As a remote landlord, it’s crucial to stay connected with local resources that can help you with your rental business. For example, you should be able to access a trusted contractor in case of emergency repair issues.
Because long-distance landlords can’t easily check and visit the property in case of emergencies, it’s crucial to have someone you can trust who will keep you updated about the status of your property and your tenants.
Being a landlord can be a tedious job, however, being a remote landlord will double the headache and stress. It’s best to work with a trusted and experienced property manager in the area to ensure that everything is well taken care of.
Professional property managers can handle the day-to-day tasks on behalf of the landlord, and you can trust that your investment will be in good hands. Get in touch with Rent Easy today and find out how we can help you get the most out of your property.