There are a hundred reasons why you would buy a rental away from home. These reasons may include less or no tax, prime location, holiday home, etc. it is not always easy to manage a property remotely. But it may not be as difficult that you may think it is. Managing a rental property remotely is possible, but you can make this possible easier by applying the tricks most professionals do.
Here are 13 foolproof tips that can help you manage your property efficiently even when you are physically states away from it.
Having A Manager or Representative:
A manager or a representative is not you, but he is a face that will be there in case of an emergency, question, or dispute. Your manager or representative is your eyes and ears while you are away. Tenants and renters need a face to associate with, and an efficient manager can be that and more. Your trusted on-site manager can help you with everything from inspections to maintenance to all emergency-related tasks. All you must do is get daily and detailed reports to keep up.
To run a rental efficiently is do not only need a manager but also a competent team, one that includes the head, i.e., your manager, a contractor, plumber, electrician, etc. A trusted team will make sure that everything works as good as a well-oiled machine in your absence. Such a team does not need supervision.
Rental Payment Collection:
Long gone is the time to collect rent in person, set up an online rent collection system, and you will never have to worry about collecting rent or delays. Auto bill-pay lets you collect rent online and eliminated the hassle of lost, stolen checks, and delayed or late payments. Apart from that, in this new age of technology, it is also a very convenient option for tenants.
No rental is perfect; there will always be repair or maintenance issues, complaints, etc. even if you are managing your rental property from afar, you need to be highly responsive to your tenants. You can't leave them hanging; this only sends the message that you do not priorities your tenant. So, make sure you run your rental on effective and efficient communication. With a high response rate, your tenant will not even realize you are managing the rental remotely.
Apart from that, no tenant wants to stay in a rental that is not efficiently managed. So, by delaying communication, you might lose a good tenant.
For effective communication, you can also opt for a tenant portal. You can use your online to communicate effectively, collect bills and manage all repair and maintenance issues. Such portals help remote landlords stay up to date with their tenants even when they have managers around.
Real estate is only a great earning opportunity when you know how to manage the cash flow; whether you manage your property remotely or in-person, you need to keep bookkeeping on top of your tasks list. Immaculate bookkeeping can give you many tax advantages.
Screening and Tenant Selection:
Screening isn't something any landlord takes lightly, but if you are managing your property remotely, the task does seem a little complicated. However, when you are listing your property, you can stress on specifications and qualities that you require in your tenant. These non-negotiable criteria will help you land the perfect tenant that you are looking for. To stress your requirement, all you need is to add a warning that your screening process will be very strict.
As a landlord, it is highly suggested that you do the viewing in-person, but you can't manage that; your tryst manager will be more than enough to handle it on your behalf. Apart from that, you can also take advantage of the technology that we have, zoom meetings, and Skype calls are great for such purposes. Virtual tours work just fine when you have a stable connection and a knack for handling technology.
Establish the Rules:
Establishing rules is very important, and by doing that, you can make sure that you have done your part in telling the tenants the dos and don'ts of renting your property. However, you will need to do this either in person or with a trust-able representative, as tenants never read the rules or the agreement on their own.
With sign documents digitally, you can easily get your agreements signed online and be done with it. This makes managing property remotely very easy.
Policy And Rent Changes:
Any changes that you want to make in policies or rent charges, you will need to do them with a formal letter. You cannot have a casual call with your tenant to discuss or implement such changes. Apart from that, it is also important not to send any formal letters on special occasions, holidays, and birthdays. Tenants appreciate when a landlord is considerate, this helps landlords make a strong connection with their tenants.
Gifts and cards are small gestures that all tenants may appreciate. Especially when the tenants are moving in, a small fruit basket or a housewarming gift is a very beautiful gesture that is again a sure way to get in the good books of your tenants. Such connections are great if you want your tenants to go for a second lease.
Security System and Cameras:
The first thing your tenants look for is security. Failing to provide your tenants with proper security is the worst thing a landlord can do, especially if you live in a high or middle-range crime area. The easiest way to protect your tenants and keep an eye on your property is to have security cameras. Cameras in prominent places will protect your tenant and keep your property from vandalism.
Visits And Inspections:
For a landlord, even one who is managing the property remotely, scheduling inspection and visits is very important. You can do this once a year, establish a connection, meet your tenants, and settle any arguments or conflicts in person.
Technology makes managing properties remotely very easy; however, to be extra efficient, you will need effective communication and a team to help you manage your property remotely.