Every investor wants to buy properties in competitive markets. But what if there are better opportunities in cities further away from you? Being a landlord requires a lot of in-person work, like showing properties, screening tenants, and performing maintenance. So, how can you invest in properties in different cities while still keeping up with day-to-day management tasks? Today, we’ll discuss how to be a remote landlord, some of the pros and cons, and property management tips.
Contents of This Article:
- What Is a Remote Landlord?
- Pros and Cons of Being a Remote Landlord
- Tips for Being a Good Remote Landlord
- Simplify Operations With Property Management
What Is a Remote Landlord?
A remote landlord is a property owner who manages a rental property from a distance without living near their property. Instead of living nearby to handle day-to-day operations, remote landlords rely heavily on technology and local property management companies to oversee them.
You may think that being a remote landlord takes away some of your control over your property. However, there are still plenty of things you can do to ensure things are running smoothly. For instance, landlords use several property management tools and apps to screen and communicate with tenants, collect payments, and assign maintenance tasks.
If you want to be a remote landlord, it’s important that you have a plan in place to regularly check on your property. For instance, you could have someone nearby, whether that’s a Northern Virginia property management company, a business partner, or a trusted neighbor, ensure your property is in good condition.
Pros and Cons of Being a Remote Landlord
Being a remote landlord presents unique opportunities, but being far away from your property can be challenging. As such, it’s important to thoroughly review the pros and cons before deciding whether or not it’s right for you. Here are a few points to keep in mind.
Benefits of Being a Remote Landlord
- More Investment Opportunities- Being a remote landlord allows you to invest in properties in competitive or profitable neighborhoods, even if you don’t live near them.
- Flexibility and Freedom- When you’re not tied to your rental property, you have more flexibility regarding where you live and your day-to-day work life.
- Passive Income Potential- Remote landlords can generate passive income with little hands-on involvement. This allows investors to focus on more than one investment property.
- Increased Productivity- Outsourcing property management tasks allows you to focus on other priorities, whether that’s your career, family, or other investments.
Disadvantages of Being a Remote Landlord
- Limited Oversight and Reliance on Others- Being away from your rental property can make it harder to monitor the condition, ensure maintenance is taken care of, and meet your tenants face-to-face. You generally have to rely on others to ensure that property and tenant needs are handled.
- Higher Operational Costs- Hiring a property manager can add to your expenses and potentially cut into your profit. Additionally, if something goes wrong that needs your attention, travel costs can increase your overall operational costs.
- Potential Communication Challenges- As a rental owner, you have to communicate regularly with tenants, property managers, and contractors. Sometimes, things can get lost in translation if you’re not speaking with them face-to-face.
- Risk of Property Neglect- Nobody cares more about your property than you. Without regular on-site visits, there’s a risk of neglected maintenance, property damage, or unnoticed wear and tear.
Tips for Being a Good Remote Landlord
Being a remote landlord has its pros and cons. On one hand, you can take advantage of desirable investment opportunities and earn higher profits. However, certain aspects can be nerve-wracking, like not knowing the current state of your property or how your tenants treat it. Luckily, there are several things you can do to be a good remote landlord. Here are several tips to consider.
- Hire a Property Management Company
- Use Effective Technology
- Build a Trusted Network of Professionals
- Conduct Regular Inspections
- Set Firm and Clear Expectations
- Invest in Landlord Insurance
- Automate Rent Collection
- Create a Plan for Emergency Situations
Hire a Property Management Company
If you’re not available to take care of the day-to-day tasks, someone has to be! This is why many remote landlords hire property management companies to help handle daily operations. They do everything, including tenant screening, rent collection, maintenance issues, and legal compliance. That way, you can rest assured knowing your property is well taken care of, even when you’re not there.
Use Effective Technology
Modern technology makes remote property management so much easier. There are several different tools and apps you can use for rent collection, tenant communication, and maintenance tracking. For instance, platforms like Buildium, AppFolio, or TenantCloud allow you to manage your property efficiently from anywhere, saving you time and effort.
Build a Trusted Network of Professionals
Having a reliable network of local contractors and property managers is crucial for remote landlords. These professionals can help quickly address any maintenance issues or emergencies when you’re not nearby.
Conduct Regular Inspections
Even though you’re away, you’ll still want to conduct regular inspections. Whether you travel to the property to perform them yourself or hire someone to do it for you, this is a task that shouldn’t get swept under the rug. Routine inspections help ensure there are no major issues with the property and that the tenant follows the lease agreement.
Set Firm and Clear Expectations
Although you may not be the one directly dealing with tenants, you must set your expectations with a strong lease agreement. That said, a well-drafted lease agreement outlines property rules, maintenance responsibilities, due dates, and more. Setting firm boundaries from the start helps build a positive yet professional relationship with your tenants.
Invest in Landlord Insurance
Landlord insurance is important, especially if you’re not always around. This helps protect your property and finances against unexpected events like property damage, liability claims, or loss of rental income. It’s especially important for remote landlords, as it provides peace of mind when you’re not there to monitor your property.
Automate Rent Collection
Most property management platforms allow you to automate rent collection, and it’s best to do this from the start. Urging tenants to set this up helps ensure timely payments and reduces the hassle of manually tracking each payment. To make things easier, many platforms also allow you to send reminders to tenants so they don’t forget that rent is due.
Create a Plan for Emergency Situations
Unexpected issues can happen anytime, whether it’s a plumbing leak or a natural disaster. No matter the situation, prompt action is necessary, even if you’re far away. If you’re too far to tend to these issues yourself, having a response plan that includes reliable local contacts, tenant instructions, and an emergency fund for urgent repairs is crucial.
Simplify Operations With Property Management
Whether you’re already a remote landlord or want to seize investment opportunities further away from you, there are several ways to make it work. One of the best solutions, however, is hiring a comprehensive rental property management company. Reliable companies, like PPM, help ensure every aspect of your rental property is taken care of 24/7.
If you’re looking for a trusted property management company in Northern Virginia, look no further than PPM. Our team of experienced property management professionals can help you feel comfortable being away from your rental. Whether it’s rental marketing, tenant screening, rent collection, or maintenance, we’ve got it covered. Contact us today to learn more about our services!