Being a landlord can be challenging, especially when you're managing a property from a distance. Whether you're moving for work, seizing a remote investment opportunity, or seeking passive income in retirement, managing a rental remotely is becoming more and more common today.
However, despite modern technology, there are unique challenges. To maximize your rental’s potential and minimize risks, here are the key practices from Keller n’ Jadd Realty & Management to help long-distance landlords succeed.
1. Thorough Tenant Screening
Selecting reliable tenants is crucial for long-distance landlords. From afar, it’s harder to manage day-to-day issues and tenant behavior, so it’s important to screen tenants thoroughly. Look beyond surface details and check rental history, credit scores, employment stability, and references.
Speaking with previous landlords can provide valuable insight into how tenants maintain properties and follow lease agreements. While screening may take a little extra time upfront, it will save you significant headaches later on.
Here are some specific things to look for when screening tenants:
- Credit History: Check for signs of financial stability, such as good credit scores and a history of paying bills on time.
- Rental History: Review past landlord references to assess whether they were responsible, paid rent on time, and took care of the property.
- Criminal Background Checks: Ensure there are no serious criminal offenses that could endanger the property or community.
- Income Verification: Make sure your tenants can afford the rent and other living expenses.
It’s better to be thorough now than risk dealing with property damage, non-payment, or legal troubles in the future.
2. Maintain Open and Regular Communication
As a long-distance landlord, maintaining open communication with tenants is key. Since you can’t inspect the property often, encourage tenants to report maintenance issues, like leaks or broken appliances, early.
Prompt action can prevent small problems from becoming costly repairs. Make it easy for tenants to reach you to ensure issues are addressed quickly.
To help maintain clear and open lines of communication, try these methods:
- Provide Multiple Contact Options: Make sure your tenants have your updated phone number, email, and any other communication methods you prefer.
- Set Up Regular Check-Ins: Schedule monthly or quarterly phone calls or emails with your tenants. These check-ins are a great opportunity to ask about any concerns and get updates on the condition of the property.
- Use Technology: Online platforms such as property management software or apps allow tenants to report issues, pay rent, and communicate directly with you, which makes everything more efficient and organized.
The key is to create an atmosphere where your tenants feel comfortable reporting problems early and asking questions as they arise. This proactive approach can help avoid costly repair bills or tenant dissatisfaction.
3. Plan Annual Visits
While you can’t be physically present every day, planning at least one in-person visit to your rental property each year is an important step. These visits let you inspect the condition of the property, but they also allow you to build a personal relationship with your tenants.
A property visit is your chance to:
- Inspect the property for maintenance issues that might have been overlooked.
- Meet your tenants in person, discuss their experience, and gauge their satisfaction.
- Identify any long-term maintenance needs that may require attention soon.
In addition to being an important part of property management, these visits can also offer tax advantages. The IRS allows you to deduct the expenses incurred during a property visit, such as transportation costs, hotel stays, and meals. So, plan a visit, even if it’s only for a few days, to take full advantage of these tax breaks.
4. Stay Updated on Local Market Trends
Being a long-distance landlord doesn’t mean you should be out of the loop. Stay informed about the local rental market and neighborhood trends to keep your property competitive.
Here’s how:
- Follow Local News: Set up Google alerts or subscribe to real estate newsletters to track market shifts and changes in rental laws.
- Connect With Local Professionals: Talk to agents or property managers for insights on pricing and demand.
- Monitor Competitors: Compare your rent to nearby properties and adjust based on market conditions.
By staying updated, you can adjust rental prices and remain competitive.
5. Leverage Local Resources for Maintenance and Repairs
As a long-distance landlord, addressing maintenance issues quickly can be tough without being on-site. To solve this, build a reliable local network of contractors or hire a property management company.
They’ll have trusted vendors on hand to handle repairs, allowing you to resolve issues without being physically present.
