You may end up becoming a remote landlord for a variety of reasons. Including, a new job opportunity requiring you to move to a different location, retiring to a different location, or even moving closer to friends and relatives.
No matter the reason, having a steady stream of passive income coming in every month isn’t something you may want to give up easily. Fortunately for you, technology has made it easier for landlords to manage their properties remotely.
That said, certain challenges still abound for long-distance landlords. That’s why in today’s C&C Property Management blog, we’ll walk you through proven tips on how to be a successful landlord.
This is arguably the most important thing for landlords, whether managing a property within or without the locale. Long-distance landlords, however, have much less room for error than landlords with easy access to their units.
As a long-distance landlord, you won’t be able to make a quick drive-by to inspect your property for possible or reported issues. It’s possible that weeks and months could go by without you ever setting foot on your remote property.
Without good tenants, a couple of things could go wrong. Among other things, they might trash the place, sublet the unit without permission, make illegal property alterations, and, in the worst-case scenario, engage in illegal activities on the property.
To prevent such issues, rent to quality tenants. And to do this, you’ll need to have a proper tenant screening process. At a minimum, the process should assess every prospective tenant based on their:
Sure, this process is often time-consuming. However, the benefits are well worth the effort.
Once you have found the right tenant, move to the next step and open up the communication lines. You’ll want the tenant to be your reliable source of information on the ground since you won’t be on-site as often as you’d like.
Whenever there is an issue that needs to be addressed at the property, you’ll want your tenant to inform you as soon as possible. Whether it’s a plumbing leak, a pest issue, a mold problem, or something worse.
The worst thing you could do as a landlord is just sit back and collect rent checks, and not involve yourself with the property’s condition. This could set you up for a nasty surprise when you eventually decide to come back for an inspection.
Provide the tenant with your updated contact information, including your emergency phone number. Also, encourage them to inform you whenever they encounter an issue at the property.
Property inspections are key for the long-term success of your rental investment. By inspecting your property regularly, you could be able to:
Even as a remote landlord, you should make a point of visiting your property at least once per year, to ensure the proper maintenance of your property. The good part is that your out-of-state visits could be fully deductible. This means that you could subtract the cost of mileage, plane tickets, meals, and hotel stays from your rental profits.
You risk getting disconnected from the local happenings when you don’t live in a particular area. You may not be able to keep tabs on the rental market changes, such as on the demographics, and rental rates. And these can have a significant impact on your bottom line.
Not keeping up with the rental rates, in particular, can result in suboptimal returns on investment. If the rental rates rise, it may mean leaving money on the table. When the rental rates lower, you may experience increased vacancy rates.
As a long-distance landlord, it’ll be in your best interest to stay plugged in with your community. And how exactly do you do that? Make sure you consume local news and stay abreast of the area’s trending topics.
Repairs and maintenance are inevitable in the life of a landlord. At some point, it’s given that the tenant will reach out to you with an issue requiring immediate or deferred attention.
That’s why developing a suite of reliable and professional local resources is key to your success.
When managing your property from out-of-state, you won’t be able to simply swing by to fix a clogged drainage system or a leaky faucet.
With that in mind, make sure to do your due diligence before hiring a local contractor and vendor. Of course, go for those with a history of solid workmanship and ratings.
Hiring a reliable, professional property management company is essential for long-distance landlords looking to simplify the complexities of managing rental properties from afar. A full-service property management company offers a comprehensive range of services that make it easier to oversee your investment, no matter where you are.
They handle everything from tenant screening, ensuring you find high-quality tenants, to responding quickly to maintenance requests and addressing tenant concerns. With a professional team managing your property, you can rest assured that rent is collected on time and all financials are handled efficiently.
Additionally, they take care of marketing your property, ensuring it’s advertised effectively to attract the right renters. By outsourcing these tasks to a property management company, long-distance landlords can eliminate the stress of managing day-to-day operations, while maximizing the potential of their rental property.
There you have it. Tips and tricks to help you succeed as a long-distance landlord. These can ensure you enjoy minimal stress and maximize your ROI even when living out of state.
C&C Property Management is a trusted partner to have as a long-distance landlord. We’ll work hard to meet your property management needs and keep your property performing to its fullest. Get in touch to learn more about what we can do for you!
Corporate Office
C&C Monterey PM Inc. DRE 01526734
Kyle Chernetsky DRE 01928366
Kevin Cesario DRE 01953086