Avoiding Frightening Incidents in your Out of State Rental Property
It is common as a landlord or investor to have one or more rental properties in other states. Even though most investors try to avoid buying properties in other states, they cannot be blamed for falling in love with an investment opportunity just because it is not in their own state. No matter how you owned such a property, here are some steps you need to take to avoid finding yourself in a nightmarish situation with your out of state rental property.
Have a clear understanding of the market
If you cannot resist the temptation of closing the deal, you should at least get a deep understanding of the local market. There is a great variation in rental markets across even a local area. You must do your homework to know the prevailing rental rate in the market before buying a property. Don’t go by the claims of the owner as setting rental rates too high will lead to a high vacancy rate. It is better to talk to local people to get an understanding of the actual monthly rents in the area.
Try to meet tenants personally if you can
You may find it inconvenient, even awkward to meet strangers, but it is in your own interest to have a one on one chat with potential tenants. It allows you to know them better. Your tenants also get a reassuring feeling that their landlord is with them even though he lives in another state.
Develop a network of local handymen and contractors
You know you cannot fly out to reach the premises in times of emergency. Therefore, it is very important to have reliable and honest team of vendors and handymen to attend to the emergency issues of your tenants. This way you can relax and breathe easy as you know the problems of your tenants will be looked at quickly by your chosen team members. This list should include electricians, plumbers, contractors, and mechanics for appliance repairs.
Make payment of rent easy for your tenants
If your rental property lies in another state, you cannot hope to drive and collect the rent personally every month. Asking tenants to send checks through mail can cause problems for you. It is much better to have a local bank account and ask your tenants to deposit their rents in that account. You can also request your tenants to make online payments using their credit or debit cards. Streamlining the rent payment process can help in avoiding a lot of problems.
Hire services of a property management company
This is perhaps the best way to deal with a rental income property in another state. Sign a contract with a property management company to look after the upkeep of the property. They will also screen tenants and collect rent on your behalf. This company will address all the issues of your tenants to allow you to have total peace of mind. Being local and having experience in this field, this company can be very useful for your out of state rental property.
If you’d like to talk more about the value of inspections, or you need help with Everest Property Management, please contact us at Everest Realty.