Any real estate investment has the potential to be lucrative, and owning rental property is no exception. However, entering the market thinking that it is a passive income earner would be erroneous as owning rental property requires a great deal of commitment and attention.
Being a landlord becomes more challenging when the property you are renting out is in another state, and you need to cover long distances to visit it. Here are some points to consider before you commit:
Help is at hand
The idea of renting out a property while they are thousands of miles away is daunting for many landlords. Absentee landlords rarely fare well with tenants and often find out about the consequences when it is too late. Tenants who know that the owner is far away and unlikely to come and inspect the property might be more careless about looking after it.
Hiring an affordable property management company like APM in California can take much of the stress of renting property out of state out of the process. Agents are close by to deal with any issues, including complaints, repairs, non-payments, and evictions. Many property owners find property managers the best solution to renting out homes in another state.
HOA assistance
While many people associate homeowners’ associations (HOAs) with being nosey neighbors, that is not what most are about. An HOA has the mandate to ensure that residential properties within its purview are clean and well-maintained.
Speak to the HOA board about your rental property and ask them to advise you of any issues that crop up. This allows you to deal with them promptly before the situation deteriorates. Good relations with the HOA can save you time and money as an out-of-state landlord.
A local support network
As a landlord who is out of state, it is challenging to know who to contact when something goes wrong at your rental property. Unfortunately, when a plumber, electrician, contractor, or handyman becomes necessary, there is no time to spare.
Develop relationships with local companies that can assist with work at your property when the occasion arises. Use the time you spend in the area to get recommendations from locals, contact these companies, and have their details at hand should their services be required.
Arrange visits to the property
As a landlord, you can arrange to visit your property while you are in town. However, do not arrive uninvited and expect a warm welcome from your tenants. Such behavior can put a strain on your relationship with them.
Schedule your visits with tenants in advance. When you go to the property, avoid making it seem like an inspection. Instead, make tenants understand that you are checking in to ensure that everything is in order and safe for them.
Secure long-term tenants
Long-term renters are most rental property owners’ dream for several reasons. Typically, these tenants are more invested in maintaining the property because they plan to continue living there. Therefore, they are less likely to engage in behavior that could cause damage. Some tenants even help landlords by overseeing maintenance and offering to pay extra rent for some improvements.
If you want to avoid a revolving door of tenants at your out-of-state property, look for renters with the potential to form a long-term relationship. In most cases, parents with children will want to remain in one home for longer.
This is an essential part of providing their kids with a stable home environment and no disruptions to their education. Profile the type of tenant you think would become a long-term renter and recruit such candidates via your listing.