How To Manage A Rental Property Remotely

Posted Dec 16, 2022

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Marketing, finding tenants, signing the lease, maintenance, unexpected repairs, the list of tasks that go into managing a rental property is extensive. So, how can you manage a rental property remotely if you don’t live locally? 

Real estate investors buy out-of-town rental properties for many reasons. Maybe there is an area with a stronger rental market, a city with more affordable real estate, or the desire to diversify your investment portfolio. No matter where the property is located, it still needs to be managed. 

Who Will Manage The Rental Property? 

As an owner of a rental property, you can manage the property yourself or hire a property manager. It depends on if you want passive income, where you are mostly hands off, or if you want to be involved in the day-to-day operations, even if remotely. In the United States, about 44% of landlords that own rental property have someone else manage it and 45% of owners manage the property themselves, according to TransUnion Smart Move

Managing a rental property has many facets, including: 

  • Understanding the local landlord/tenant laws
  • Preparing the rental for showing to potential tenants 
  • Marketing 
  • Screening tenants 
  • Rent negotiation and lease signing 
  • Maintenance 
  • Unexpected repairs 
  • Potential evictions 

The list is long, but there are different ways to manage the tasks of owning a rental property either by doing it yourself, or by hiring a property manager. 

Essential Tools For Remote Management 

New tools for landlords are developing all the time, making remote management more convenient. Many of the tools are the same that a property manager uses and can make managing your rental properties less stressful. 

Showing the property - sometimes people will rent a property sight unseen, but this isn’t likely. It might seem impossible to show a property when you don’t live locally, and don’t have a property manager, but there are solutions like making a virtual tour video or having someone local that you trust access the property using a lock-box. Some landlords will allow potential tenants to enter using the lock-box, but that is up to your discretion. 

Online application and paperwork - if you have ever sat down and signed a lease, you know that there is a lot of paperwork involved. Now, there is online software where tenants can apply online, look over the lease documents, and even sign digitally. This allows you to complete the application process remotely. 

Digital payments - the days of walking the rent check to the landlord’s office are over. Now, there is digital payment software where your tenants can submit their rent online. This is convenient for them and makes it possible for you to manage your property remotely. 

Tenant website portal - if you have multiple properties, it's helpful to set up a tenant portal. Here, they can pay their rent, communicate with you, and even request service or report a problem with the property. 

Having a local network - when a tenant reports a problem, or if you need routine maintenance, having someone locally to service the property is essential. If you are managing the rental property remotely, there is no way to handle these requests yourself unless you want to spend a lot of time traveling. 

Hire A Property Manager 

If managing a rental property sounds overwhelming, but you still like the idea of potentially making a passive income, you can hire a property manager. This gives you an all-in-one solution for making sure every aspect of owning a rental property is covered. It does come with a cost. Some costs associated with hiring a property manager include the following: 

  • An initial fee for each unit they will manage 
  • A percentage of the monthly rent, usually between 8% to 10%, or a flat monthly fee per unit 
  • Lease signing bonus for each tenant they sign 
  • Lease renewal fee when they secure the continuation of a tenant's lease 
  • Extra fees for handling evictions. 

The costs can vary widely based on how much you want the property manager to handle. And, if you want to manage your properties remotely with little stress, this might be the best choice for you. 

This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.

Resources: 

https://www.mysmartmove.com/SmartMove/blog/todays-landlord-characteristics-infographic.pagE

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