You’d love to start investing in rental real estate, but the market where you live isn’t conducive to this type of investment. Your next idea is to look in remote cities. Investing in remote property opens up new markets and gives you the opportunity to find the ideal investment.
It can be a challenge to manage property remotely, though. If you don’t diligently manage your rental property, you risk facing some costly issues. Try these ideas and make your remote real estate investment a financial success.
Hire a Property Manager
The smartest thing you can do as a remote property owner is to hire a local property manager. This gives you someone who you can trust and rely on to handle the routine tasks of being a landlord.
They can find and vet tenants, collect rent, manage repairs, and initiate eviction processes. Look for a full service property management service that can handle it all for you.
Have Strict Tenant Qualification Standards
If you’d rather take a DIY approach, then the first priority is to have a strict tenant screening process in place. You need to find the most desirable tenants so that you can reduce the chance of having problems.
Look for tenants that have high credit scores, low debt to income ratios, perfect rental histories, and glowing references. These tenants are least likely to cause problems.
Automate the Process
Technology is your friend, so embrace automation for as many tasks as possible. This is especially true if your living in a foreign country or even a different time zone as your property. Your tenants can pay rent, submit repair requests, and do any other communication through an online portal.
Have Strong Handyman Relationships
Establish a working relationship with a general contractor before you leave. Negotiate pricing and sign a service contract. That way, once you are out of town, you have a repairman contact for when tenant issues arise.
Doing it this way prevents you from having to locate someone while out of town and not knowing their quality. It also speeds up the repair process since you already have someone in place to do the work.
Think of this as any other long-distance relationship; for success, you need to communicate effectively and often. Agree on a method of communication with your tenant at the beginning of the lease. Then regularly reach out to your tenant through that method to maintain a line of communication.
It can help to provide your tenant with an alternate person should you not be available. It’s even better if this alternate person is more local and able to respond in person to an emergency.
Have a Strict Zero Tolerance Policy
If you live locally, then you could let things slide here and there. But you aren’t local, and you don’t know what happens at your property from day to day. Having clear and strict rules about your property will protect your rental from damage. Enforce a strict no-tolerance policy to prevent small issues from becoming major ones. The most common policies to enforce are no smoking and pet rules.
Either you or someone you trust should check-in on the property regularly. At the very least, you need to visit the property at least once a year. It doesn’t matter how much you trust the tenant or your proxy; nothing will replace you seeing the property with your own eyes.
Manage Your Rental Properties Remotely
If you decide to manage property remotely, the smartest thing you can do is hire a property management company. This will take the pressure of active management off of you and let you passively manage the property. It will also let you take advantage of the property management company’s experience, relationships, and established procedures.
Contact our team today and let us help you manage property remotely in Davis County.