The Zebra reports that 7 out of 10 rental properties were owned by individual investors in 2022.
This means big real estate firms don’t manage most rentals – they’re run by people like you. Being a landlord is challenging, and managing a property from another state adds extra hurdles.
You can’t check on things yourself, so you rely on others for repairs, rent collection, and tenant concerns. You might wonder how to be an out-of-state landlord and still succeed.
The good news is that it’s possible with the right strategy. Below are some simple, effective tips to help you manage your rental and thrive from afar.
Screen Tenants Thoroughly
Dealing with troublesome tenants from afar can be very challenging. They may refuse to answer emails or ignore your calls.
Sometimes, you might even need to make long trips just to communicate with them. Handling tenant evictions from another state can also get costly.
Proper tenant screening can help you avoid these problems. It reduces the chances of renting to someone who might cause issues.
Start by checking their background, credit report, and employment status. Ask for references from previous landlords to learn about their behavior and reliability.
When you’re managing rental properties remotely, good tenant screening ensures that you rent to responsible individuals. It saves time, stress, and money by preventing potential problems before they start.
Establish Clear Communication Channels
When you manage a property remotely, clear communication is key. Without it, problems can quickly grow.
Set up separate ways to reach you. You can use email for general questions and phone/text for urgent issues. Property management software can also help make communication easier.
Let tenants know how to reach you in an emergency. Also, provide an alternate contact like a local property manager or trusted repair person to help with urgent matters.
Having clear communication channels will help you deal with any challenges. As an out-of-state landlord, staying in touch with your tenants will make it easier to keep everything running smoothly.
Maintain a Clear Lease Agreement
A solid lease agreement is crucial to your success as a landlord. It protects you and your tenants while setting clear expectations. As an out-of-state landlord, ensure that your lease is thorough and follows the laws in the state where your property is located.
It should cover:
- Rent due dates
- Late fees
- Security deposits
- Maintenance responsibilities
- Rules regarding pets
- Noise levels
- Subletting
- Utilities and service charges
- Tenant’s right to renew
Creating an ironclad lease helps prevent misunderstandings. It also gives you a clear process to follow if issues arise.
As a remote landlord, having everything in writing ensures smooth communication and operations. It helps avoid confusion and keeps everyone on the same page.
Schedule Regular Inspections and Maintenance
When you’re far from your property, its condition can deteriorate. Tenants may not report minor issues right away.
They’ll usually wait until problems get bigger. By then, repairs can be time-consuming and expensive.
Scheduling regular inspections helps you avoid these out-of-state landlord challenges. You can set inspections every six months or yearly. Adopting this approach can help you catch issues early when they’re easy and cheap to fix.
Invest in preventative maintenance to keep plumbing and electrical systems running smoothly. Regular checks prevent sudden breakdowns, which can lead to expensive emergency repairs. A well-maintained property attracts good tenants and saves money in the long run.
Leverage Smart Home Technology
In today’s world, smart home devices are great tools for out-of-state landlords. They help you manage and monitor your property from anywhere.
Start with smart locks on doors. You can give or take away access from tenants, cleaners, or contractors remotely.
Installing security cameras around your property also improves safety. These cameras help you monitor activity, especially in vacant units.
Smart thermostats, smoke detectors, and water sensors are also useful. For example, a water sensor can alert you to a leak before it becomes a big problem.
With smart technology, you can check on your property 24/7 without being there in person. These devices make it easier to manage your rental property while you’re far away.
Set Up a Clear Rent Collection System
Timely rent payments are key to your property’s cash flow. You need an easy and automated rent collection system when managing a property remotely.
Set up an online payment system where tenants can pay rent easily and safely. It lets you track payments in real time. It also reduces the chances of missed or late payments.
You can set up automatic rent reminders for tenants before the rent is due. Using it can keep your income steady and reduce your workload.
Setting up a good system can streamline rent collection and ensure smooth operations. Your income will be more reliable, and you won’t need to chase tenants for payments.
Build a Trusted Vendor Network
As an out-of-town landlord, one challenge you’ll face is overseeing inspections, maintenance, and repairs. You can’t drive there every time something needs fixing. That’s why it’s good to find trustworthy vendors who can work without your direct supervision.
These professionals might include:
- Contractors
- Plumbers
- Electricians
- Handymen
- Cleaners
Start by asking other landlords for recommendations. Choose vendors who are licensed, insured, and reliable. You want to be sure they can provide quality work.
These trusted professionals make a big difference during emergencies. For example, if there’s a burst pipe, you need a plumber who can respond quickly and fix the problem. With a reliable vendor network, you’ll save time and stress.
How to Be an Out-of-State Landlord: Seek Professional Help
Investing in real estate is one of the best ways to build wealth and cash flow. However, where you live may limit your investment options. That’s why learning how to be an out-of-state landlord can help.
Managing a property remotely can be tricky, but you can simplify it with professional help. With the right experts by your side, managing a rental property from afar can be a breeze.
Next Level Property Management can offer this assistance. We have over three decades of real estate and property management expertise. We serve Riverside, San Bernardino, Orange, and San Diego.
Trust us to provide reliable property management advice. Contact us today to learn more about our services.