How Property Managers Deal with Owning Out-of-Town Properties

In a perfect situation, property managers would live near each property they own; this would make handling any situation pretty simple. Unfortunately, it's not always easy for a person to invest in property in their own city.

Additionally, an individual may invest in a retirement home in a different city.

Many retirees choose to rent out their future retirement home before moving in themselves, in an attempt to pay off some of the mortgage so it's more manageable later.

Whatever the reason, there are a few things property managers can do to make their lives a bit easier when the property they manage is out-of-town.

It All Starts Before the Purchase
Properly managing an out-of-town property starts before that property is even purchased.

It's first important to speak with a few real estate agents in the area who are regularly involved in the selling of investment properties.

An interview over the phone should suffice, and then agents can send property listings over for the manager to review.

Once a real estate agent has been chosen, it is important to make a trip to the city to view properties.

Before going, an individual should pick out ten homes in which they are interested.

A property could be snatched off the market between the time it is seen on paper and then in real life, so picking several homes to view is essential.

Also, it never hurts to consider short sales or foreclosures.

While these properties may require some tender loving care, their initial low price could help make up for some of the impending expenses that are always related to owning out-of-town properties.

Get References from Real Estate Agent
Property managers who don't want to make repeat trips to a city other than their own will need to find local service providers that can handle issues at a property when they arise.

These include handymen, electricians and plumbers, amongst others.

It may seem like a hassle to track down and vet all of these professionals from a different city, but fortunately, the real estate agent can help with this task.

When working with the real estate agent to buy a property, finding local service providers is as simple as asking.

These professionals often work in a localized area, and they usually have good connections to other nearby professionals in different industries.

Inquire about small local companies; they are often more honest about necessary repairs.

Make sure to contact these businesses to let them know you'll be using them and to set up arrangements.

Take Advantage of Technology
Once an out-of-town property has been decided upon and local service providers chosen, it becomes necessary to find the right tenants for a property.

Fortunately, much of this and the interactions following this decision can be easily handled, thanks to advances in technology.

There's property management software out there, for instance, that will provide tenant screening and legal forms for each state. This information is imperative when investing in non-local properties.

When it comes to collecting rent, there's no need to wait long periods for a check to be mailed between cities and states.

Most banks allow for transfers online, and if a property manager's bank has a location in the city where their new property is located, a tenant could actually just go into the branch and make a deposit.

Of course, this setup may carry disadvantages for both property manager and tenant, so it's often a better idea to just use online rent payment to handle the issue.

Consider Outsourcing
While there's no doubt that technology has made it simple and affordable to manage an out-of-town property, some may opt to make their life even easier by hiring their own property manager.

Many real estate companies offer property management services, so it doesn't hurt to ask from the outset.

It's important to recognize, though, that this option could cost upwards of 10 percent or more of the monthly rent.

While there are undoubtedly some downfalls to managing out-of-town properties, many of the benefits outweigh the disadvantages.

Fortunately, it has become quite easy to manage out-of-town properties for those who have initiative.

Posted on Dec 29, 2014


The Landlord Tenant Board: What it is and When it is Needed

Many times, there are issues between a landlord and a tenant that need to be resolved but are failed to do so, because both parties have gone too far with their actions, and have retaliated in the... More

How to Create a Residential Lease Agreement

Where there is a landlord, there will also be a tenant, and it is no surprise that these two parties can only work together once there is some sort of agreement, contract or a binding deal in place.... More

The Best Sites for Rental and Lease Agreement Templates

Many landlords find it difficult to write and draft a lease agreement. Since every State has its own general template, it can also be difficult to make sure your lease agreement meets all the criteria... More

Landlord Obligations: The Responsibilities of a Landlord

Becoming a landlord is a major deal and no one can simply get up and think, “well, yes I think I should be a landlord and rent out my flat.” If you are thinking that you would like to be a landlord,... More

The Best Landlord Associations for Landlords to Join

If you’re a landlord and want to manage your business in a better way, you should endeavor to get in touch with those industry experts who have the experience and the skills to help you do it. This is... More

The Best Landlord Forums

Landlords and aspiring landlords, do not become as such, without guidance and advice. There is a lot that goes into being a landlord nowadays; in fact, there is so much to learn that it often confuses... More

The Biggest Landlord Problems and How to Fix Them

Renting out an apartment or a house can become a constant revenue source for landlords, but at the same time, it gives rise to several problems. It is a fact that high standards, a strict lease... More

Landlord Tenant Disputes

If you are currently thinking of becoming a landlord only because it helps you have a constant stream of income, you should think twice. It’s not that you should not consider offering your property... More

Unpaid Rent

When you talk about the most common disputes arising between landlords and tenants, nonpayment of rent has to be there in the list. People rent their properties to earn money, and when a tenant... More

Section 8 Landlord Pros and Cons

If you have ever rented a living space and have had to move many times, you’d already know how difficult it is to find decent, affordable and secure living premises. A person has to deal with the same... More