The information age affords investors the opportunity to live anywhere in the world AND purchase rentals anywhere in the world simultaneously. While every job takes some elbow grease, as does the prospect of rental property investing, landlord investors don't have to reside in the same zip code as their rental properties.... as long as they are smart about ensuring that out-of-state cash flow.
Innovative Property Solutions presents five tips for ensuring successful rental profits for investor landlords who live out-of-state:
Look for bargains in zip codes where renters WANT to live. The demand for rental properties will be higher as vacancies in desired locations are rare. While you might find a cheaper property elsewhere, you might find trouble securing a solid tenant. As rental demand hinges on healthy job markets and growing populations, so does the success of obtaining quality renters who are willing to pay whatever price necessary to get into a property in the location they want.
Know the rental value of a property BEFORE you buy it! Consult local property management companies about the going rate for monthly rent and search out online tools such as Craigslist, Facebook Marketplace and Rent.com. You could even perform your own survey to learn what tenants would expect to pay for a home in the zip code in which you are looking for a purchase.
While property management companies are a wise decision in all facets of rental property ownership, they are imperative to the success of long-distance investors. It is difficult to hunt down rent payments, inforce basic policies and simply manage a property while living out-of-state. This will be the most important decision you make, so do the research and take your time find a company that will work for you and value you as a client. Make sure your property management will be accessible and willing to help you succeed as an investor. Look for quality and no just a cheaper bottom line. You will always get what you pay for! A premium property management company will recognize your rentals as assets and work with you to achieve your investment goals.
Once you've secured a premium property in a highly desired area, don't be afraid to ask for top dollar! If the property sits for a while, reduce the rate. Be willing to be patient and make sure that you are presenting strong product that is well-packaged and move forward with confidence!
While property management companies are easy to find, the truly remarkable ones will take some time to locate.
Most tenant placement problems come from having a rental in a low-demand area or incorrect pricing. Increasing rental demand in a city is outside the scope of what most individual investors can do, but our pricing is easy to alter.
In addition, property managers are usually easy to find, though it’s important to note that great ones are very hard to find. Do not be short-sited by zeroing in on the cost. Rather, consider the tremendous value a great company will bring to you and your assets! Do the homework and solve your problems before they occur!