How to Succeed as a Long Distance Property Manager
Is your investment property in a different community or city from where you live? Do you have challenges managing your rentals efficiently? If that is the case, by the end of this article, you'll know how to succeed as a long-distance property manager.
There are several reasons you might live miles away from your rental property. For large-scale investors, it's not unusual to have properties scattered around the country. Also, distance can make being a landlord hard if you have to move or prefer to use your second house as a vacation unit. This post looks at some of the most common challenges, helpful management tips, and when to hire a property manager.
Challenges Long Distance Landlords Face
Managing Unfamiliar Territory
One of the biggest challenges for long-distance property management is managing an unfamiliar territory. You'll always have a leg up in your turf, where you understand the realities of the current rental market. Since rental laws vary from state to state, some investors can make negative decisions without the right local knowledge.
Dealing with Slow Responses
Another drawback to investing in a property far from you is your slower response time. For instance, the time zone difference can affect communication if you live on the West Coast and own property on the East Coast. Unfortunately, you can't hop in your car and drive to the location for a prompt answer.
Relinquishing Control
Most landlords need to outsource the management of a long-distance rental to some extent. That inevitably means they have to relinquish some control of their property to the hired help. While that can be great when it works out, it can just as quickly be a disaster. Without the proper support, your rental business could suffer greatly.
Building Contractor Relationships
Another con of being a long-distance landlord is your inability to build beneficial contractor relationships. In other words, it would be hard for you to identify and create an understanding with the best plumber in town. Even if you could locate them without a physical meet-up, they might be less inclined to offer you discounts in the future.
Tips for Managing From Afar
Use Technology to the Fullest
Thanks to technology, landlords can streamline most of their duties by going digital. For example, you don't have to knock on doors to remind people to pay their rent. You can set up an automated e-payment system that saves both parties a lot of stress. Thus, embracing technologically advanced rental solutions would be in your best interest. That might include virtual tours, video conferencing for screening, online applications, etc.
Take Tenant Screening Seriously
It's not easy dealing with a problematic tenant, and it's even worse when you cannot personally reprimand them. Hence, you must take your tenant screening seriously, especially if you're not going to be around. Although, it would be an excellent idea to utilize local property managers to assist in tenant screening.
Establish an Efficient Communication Channel
Establishing an efficient communication channel is crucial when you live far away from your tenants. A good landlord should always be accessible to their renters, so they file complaints, answer questions, or get updates on their property. It would be best if you chose a platform that worked for everyone. For example, if your renters aren't tech-savvy, it might be best to skip property management software portals and stick with calls and texts.
When to Hire a Property Manager
You Need a Physical Representative
A physical representative can oversee house viewings, screening procedures, and maintenance. Hence, it would be a great idea to hire a professional property manager that can assist.
You have Multiple Properties
Even if all your rentals are within the same city, managing it can be a hassle. Of course, that's often the case with long-distance landlords. However, a property management company can free up more time for you to expand your business.
You Find Management Overwhelming
Not every landlord likes the hands-on approach when it comes to real estate. Being a retiree might find it particularly exhausting to keep up with all your duties. That's why having a property manager complete many of your tasks would help.
Conclusion
Contrary to popular belief, investing in rental properties is not a passive venture. Quite the opposite, hands-on management requires understanding the market and resolving issues rapidly. Besides, it's also easier to establish a relationship with vendors and contractors when you can discuss one-on-one. That's why learning how to succeed as a long-distance property manager is essential.
Some helpful tips we highlighted include using technology, working on your communication, and choosing your tenants carefully. Of course, hiring a physical representative is one of the best solutions. An experienced property management company can help you ensure the smooth running of your rental while saving you time and money.
