When an investor is not geographically close to their rental properties, the risk of owning these homes can seem magnified. You cannot respond to maintenance emergencies from afar, and you’ll have a hard time showing the property, inspecting it, and communicating with tenants when you live in a different state.
Good property management is essential, and when you’re looking for the right management partner, make sure they can respond to all of your concerns. In our experience managing homes for both local and distant investors, we’ve noticed that these are the five main concerns for owners when they’re outside of the area.
1. Long Vacancies
Vacancies are expensive, and it can be frustrating to have your rental home left unoccupied for long stretches of time. Without the consistent rental income you expect, your entire financial picture is disrupted. You’ll need a property manager who excels at:
- Understanding the local market in order to price your property effectively.
- Strategic rental property marketing
- Responsive tenant showings
- Online application processes
- Efficient and complete tenant screening
Avoiding expensive vacancies and turnover will be important for any investor. For out-of-state investors, it offers the additional peace of mind you need that your property is occupied and earning what it should.
2. Unpaid or Late Rent
How can you collect late rent when you’re living thousands of miles from your rental home?
You’ll need to know your property manager has a reliable and consistent rent collection process in place. The rent you receive should also be timely. Talk to your property manager about when you can expect to see deposits. All of the rent collection and payment should be done electronically, especially when you’re out of state. Paper checks in the mail are unreasonable; you’ll need online access to your rental payments.
If rent continues to be unpaid, make sure there’s a plan in place for collection and if necessary – eviction.
3. Broken Lease Agreements
Landlords living out of state are often concerned that their tenants will leave before the lease ends. Broken leases are expensive and frustrating. A local property manager needs to be prepared to enforce your lease agreement and hold your tenants accountable.
4. Property Damage
Paying for minor wear and tear issues after a tenant moves out is something most owners are prepared to do. If there’s damage caused by tenants, those costs will be paid for out of the security deposit.
What if the security deposit doesn’t cover the amount of damage?
This is often a concern for non-local investors who cannot go to the property and see the problems for themselves. It can often feel worse than it is when you’re not actually there.
You’ll need a management team that’s excellent with documentation and able to work with tenants to avoid excessive property damage. You’ll want access to great vendors and contractors who can work quickly to make that property ready for the rental market again.
5. Reaching Your Local Property Manager in Washington
Perhaps the most important thing for out-of-state investors to understand is how they’ll communicate with their local Washington property managers. You’re going to need a way to contact your management team when there’s a question, a concern, or a maintenance issue to discuss.
Most management companies will have an online portal, where you can send and receive messages and access updated information on financial reports, accounting statements, invoices, and maintenance work. This portal is often a lifeline for out-of-state investors who want to stay connected with their properties and their management team.
If you’re investing in Washington rental properties from out of state, we’re a team of local professionals that can help you have a successful and profitable investment experience without a lot of the stress that often comes with owning property from afar. Contact us at Real Estate Gladiators.
