Investing in an out of state rental property can be a great way to diversify your portfolio and generate passive income, but since you are not there to supervise it, how do you find the right property manager?
As an investor, you know how important it is to act on a great investment when you find one. And, sometimes, that investment may not be conveniently located. It may even be in another state where the marketing seems to be showing incredible growth.
So, does that mean you should ditch the great investment because it isn’t local? No. As an investor, you have the world at your fingertips. It is easier now than ever before to expand your investments in property rentals. All you need to do is find the right property manager to handle your out of state rental property. Here’s what you should be looking for.
If you are investing in out of state rental property, then you also need to invest in a property management team to care for it. It is not feasible to try to be a landlord from a distance — whether that distance is 300 miles or 3,000 miles. You need to have someone available at all times to be able to address the needs of the property, whether it is showing the property to new potential tenants, dealing with a broken air conditioner, collecting rent, etc.
A full-service property manager will be able to handle all aspects of your rental property for you – while you remain in your home state. How do you know if they are a full-service company? Well, think of all the things that come with managing a rental property — and make sure they offer it. For example:
Your property management team should also take advantage of available technology and have a portal that you can log into from wherever you are and see the status of your property and any financial transactions concerning it.
Keep in mind that if you have a specific type of investment, such as multifamily or commercial property, then you will want to make sure the property manager you choose specializes in that type of rental. After all, not all rentals are handled in the same manner.
Another important aspect of finding the right property manager for your out of state rental property is finding someone who has a deep understanding of local and federal housing laws. You never want to find yourself in hot water due to issues concerning discriminatory practices and such.
Even though you may not be the one doing the lawbreaking, the property management team you hire is representing you and your property — and you don’t need the risk. Not to mention that the legal battles that may ensue can be time-consuming and very costly.
Do your due diligence when hiring a property manager to make sure they have an understanding of the laws and have protections in place to ensure they are being followed at all times. Don’t be shy to ask about this. Those companies who take following the law seriously will have no problem showing you how they do so successfully.
Before you turn the keys to your rental property over to anyone, you want to make sure the property manager you choose has the proper credentials to be in business. These requirements will vary based on the location of your property. Be sure to check for what is needed — and then confirm the property management team has it before you commit.
You need a property management team that has proven success. You want to know that you are hiring someone who will be able to market your property and find high-quality tenants. And when something breaks, you need to feel confident that your manager has a network of repair technicians to take care of it properly. And so on.
Taking care of an out of state rental property doesn’t just involve being reactive, but proactive, too. As you head out on your quest for the right property manager, make sure that the one you choose has a thorough and proven process in place to surpass the needs of your rental property. You should be able to feel confident that it is being cared for just as you would if you were local – or even better.
Communication is key for nearly everything in life – including your relationship with your property manager. Nobody wants to work with someone who is not responsive – whether the manager or the owner.
The only way to effectively manage a property involves communication. As the property owner, you need to know that when you have a question, someone is going to answer that phone call or email. The job of a property manager can be very busy and tiresome, but there should always be time set aside to communicate openly with property owners about the status of their out of state rental property or to address any concerns.
Discuss this process with your future property manager and lay out any expectations you may have.
A well-known property manager is going to have a lot of satisfied clients. And that means they should have information online for you to read and put together an image. And what you are looking for is a healthy reputation.
Ask about their experience, their years in business, their specialties, and so forth. Do enough research and you should easily be able to see whether or not you are dealing with a property management team that can truly meet your needs.
Sometimes you just find the right property manager and you just know that the relationship will be a success. With over 30 years of experience and thousands of satisfied customers, you know you are getting professional, thorough, and successful Phoenix property management.
Investing in out of state rental property should never be limited by borders. Now that you know what to look for, if you find a great opportunity in another state, rest easy knowing that you can find help through a professional property manager.