Managing rental properties remotely can be just as challenging as it is freeing. While you don’t need to be physically present, it does take time and effort to manage everything from a distance. There are also unique challenges you’ll face, and it’s important to have strategies and systems in place to ensure long-term success.
If you’re managing rental properties remotely, here are four tips to stay organized and streamline your responsibilities.
Hire a property management company
No matter where you own property, there are local property management companies who will take over your responsibilities and take care of your properties and tenants. A professional team can offer you everything you need to run your real estate investment business. For example, Green Residential is a team in Texas that provides everything landlords need to be hands-off. Some of their investors live in the area, but many live across the country in other states. When you have a professional team working on your behalf, there’s no need to worry about your properties, and you don’t have to spend money on plane tickets just to check in every couple of months.
Outsourcing your landlord duties is essential when you manage properties remotely. Not only is it convenient, but it helps you stay in line with landlord-tenant laws that vary between locations. This is one area where you can’t afford to make a mistake. The consequences of breaking the law can be severe. You might get sued and forced to pay a big judgment to your tenant, and that can set back your profitability by months.
The truth is, when your property is far away, you don’t have any immediate control, and it costs money to constantly fly out to visit. You need someone reliable that you can trust with essential duties, like repairs, maintenance, and tenant emergencies. That’s exactly what a property manager will do for you.
Use property management software
If you’re going to manage properties remotely on your own, without help from a property manager, using software is essential to track your obligations and take care of your tenants. At a minimum, you’ll need applications that offer the following:
- Online rent collection. While you might be required to allow tenants to mail you a rent check, 69% of tenants prefer paying rent online and will use the service when offered.
- Repair and maintenance tracking. Scheduling and monitoring repairs and maintenance will keep your tenants happy.
- Financial reports. Tracking your income, expenses, and profitability is crucial.
- Tenant portal services. Managing properties remotely is easier when tenants can log into a special area to pay rent, check their lease terms, and send you requests.
There’s no need to worry about your investment properties just because you live far away. Software will keep you organized and profitable while helping you meet your tenants’ needs.
Develop clear communication
Strong communication with your tenants is fundamental to your ability to successfully manage properties remotely. From the beginning, set clear expectations for communication, and be sure to honor it both ways. Be responsive to your tenants’ needs and don’t leave them hanging. Make sure they know they can reach out to you with questions, concerns, or maintenance requests and always respond promptly. Even if you can’t fix something at the moment, let them know you’re on top of it and will get back to them when you schedule a repair.
Inspect your property regularly
Thorough inspections are critical for maintaining your rental property in good condition. Inspections are the only way to spot signs of damage that your tenants may not tell you about, and in some cases, they may not even notice. For example, an inspection can help you identify water damage from a leaky roof, a rat or termite infestation, and structural damage.
Inspections should be scheduled periodically, although not intrusively. If you have a property manager, they’ll take care of this for you. If you hired an individual, you may need to tell them how often you’d like them to perform inspections. If you’re working with a professional property management company, they’ll create a regular schedule that works best based on their experience
Remotely managing your property doesn’t have to be hard
Self-managing your rental properties can be profitable as long as you have the right systems in place. With the right software and some help from a local property management company, you can be a successful real estate investor while managing your properties from afar.