How To Be A Long-Distance Landlord

Are you a long-distance landlord? You have come to the right place!

Great investment opportunities often appear where you least expect them. Perhaps you moved away and chose to keep your home as a rental property. Maybe you found a unique investment opportunity across the country.

While managing a rental property from out-of-state can be challenging, it’s not impossible by any means.

The experts at RedSail Property Management will review everything you should know to become a successful long-distance landlord. Let's explore 6 top tips that will increase your ROI and decrease your stress as a long-distance landlord. Keep reading to find out more!

What Is a Long-Distance Landlord?

A long-distance landlord is a real estate investor who owns and manages rental properties located in a different city, state, or even country from where they reside.

Long-distance landlords can enjoy many benefits, including a steady passive income and portfolio diversification. However, it comes with its fair share of challenges and risks, including maintenance, repairs, and potential tenant issues.

Top Tips for Becoming a Successful Long-Distance Landlord

Nowadays, technology allows investors to monitor their rental properties, even from afar. However, becoming a successful long-distance landlord requires more than that.

Here are some of our top tips and best practices for successfully managing a rental property from out of state:

Research the Local Market

Researching the local market is key to a successful real estate investment. Market research provides investors with relevant insights into property values, rental demand, and other key trends.

Before listing your out-of-state property for rent, you must thoroughly research the local real estate market. This will help you assess if there are any potential rental increases, determine whether there is a high demand for rentals in the area, and spot potential competitors.

With this information in hand, you’ll be able to make informed decisions and ensure the profitability of your investment.

Conduct Thorough Tenant Screening

Renting your property can be daunting, especially if you live in another city or state. Luckily, there are many things you can do to keep your investment protected, such as screening prospective tenants.

When renting out a home remotely, you cannot meet potential renters in person or schedule regular inspections. However, you can conduct a thorough screening process to ensure only responsible tenants occupy your property.

By checking the applicant’s credit and employment status you’ll be able to ensure they’re good-quality tenants.

Write a Solid Lease Agreement

In addition to screening tenants, writing a solid lease agreement is a great way to keep your investment protected.

Given that leases are legally binding documents, you’ll have the peace of mind of knowing you can take legal action if any tenant fails to comply with the terms of the lease.

A well-written lease agreement should include the following details to protect both landlords and tenants:

Parties Involved: Clearly identify the landlord and tenant.
Property Description: Specify the address and details of the rental property.
Term and Rent: Define the lease duration and monthly rent amount.
Security Deposit: State the deposit amount and the conditions for its return.
Maintenance Responsibilities: Outline who is responsible for repairs and upkeep.
Utilities and Services: Clarify which utilities are included and any shared costs.
Rules and Restrictions: Cover rules related to pets, smoking, noise disruptions, subletting policies, and other key behaviors.
Termination Clause: Explain whether either party can end the lease and the condition to do so.
Legal Disclosures: Include any mandatory disclosures, such as lead-based paint or asbestos.
Signatures: Both parties should sign and date the agreement.

Leverage Technology

There are many ways real estate investors can use technology in their favor, from automating payments to keeping their properties safe.

As a long-distance landlord, you can greatly benefit from using technology to manage your rental property. For instance, you can get property management software to streamline tasks such as rent collection, maintenance tracking, and even financial reporting.

Other components like security systems allow you to keep a close eye on your rental property even if you live out of state. If you don’t have one already, consider investing in a security system that includes features such as motion sensors, door and window sensors, and surveillance cameras.

Communication

As a long-distance landlord, maintaining open communication with tenants is essential. It helps ensure tenant satisfaction, property upkeep, and the success of your rental.

Even if you don't meet them in person, allowing tenants to call, text, or email you with any inquiries or requests they may have is a great way to promote open communication and make tenants feel heard.

Partner with a Local Property Management Company

If you’ve never owned a rental before or don’t have the time to keep tabs on your out-of-state rental, you should consider parenting with a local property management company, such as RedSail Property Management.

These professionals can take over tasks such as tenant screening, inspections, maintenance, and rent collection for you. Their knowledge of the local real estate market can help you make better choices for your investment.

Property managers can save you time, hassle, and stress while protecting your investment and maximizing returns.

Bottom Line

Becoming a long-distance landlord can be an incredibly profitable venture. While managing a property from afar has its unique set of challenges, there are plenty of tools and resources that can help you overcome them.

To succeed as a long-distance landlord, you should conduct thorough market research, screen tenants, draft a good lease agreement, and leverage technology.

Additionally, hiring a trustworthy property management company can help you elevate the potential of your investment.

Are you looking for a property manager in Hampton Roads, VA? Contact RedSail Property Management today!