“Landlording” Without Boundaries
"Landlording" Without Boundaries
Choosing to manage rental property into retirement a decade ago was not as possible as it is today. Not only is it feasible, but it can also be an extremely smart and lucrative way to invest your money. Over half of the population wants to relocate in their retirement years. This could easily keep some potential property owners or current property owners from leasing their property from afar. In this day and age there have been many tools created to help tear down this roadblock. It is now possible to make “landlording” from a long distance the same as “landlording” within a short distance of your property. There are a couple of key things to act on if you want to successfully managing property from a remote location.
Something that may seem tedious initially, but could save you from big issues down the road is having each of your potential tenants do a background check. If you are not going to be in the same city or even the same state as your property, you want to make sure it is in the hands of a responsible tenant. These background checks will reveal the individual’s rental history, work history, criminal past, and a credit check. Putting a background check in place can insure that these tenants are coming from a good standing.
Reliable Local Maintenance
If you are considering managing rental property from out of town, then you will want to make sure you set up a good relationship with a reliable maintenance resource that is close in proximity to your property. This should be your point of contact for any emergencies that could occur at the rental property or if the house needs any maintenance work. Use local resources for word-of-mouth recommendations and interview these maintenance professionals in person if possible when you are in town with your property. Meet them at the property and do an initial walk-through together. That way, in the future, when you reference a particular element of the property (eg – the drop-down attic access in the garage), you will both be able to have a true reference point.
As a landlord, you need to make sure you are well informed with the location of your property and fully understand the surrounding area. It is important to know the trends within the city so you can prepare yourself for any transitions and better cater to your tenants. Take some time to explore the city where your property is located and talk to locals about how it has changed over the last couple of years, if at all. The housing market is one that is always affected by the changing trends of a city. You will be better off, as a landlord, if you can stay ahead of these trends.
Efficient Management System
Keep in mind, you are considering managing during your retirement years. You want to make this as easy and seamless as possible. The ever-changing technology industry is now making it possible to hold a personal relationship with someone across the world. Technology is now bleeding into the real estate industry like never before. It is essential to make sure you have a well organized accounting system whether it be something like QuickBooks or integration with a property management software. Find the best system for you and your tenants and make sure to communicate it to everyone who is involved in the management process. Keep in mind, the new incoming wave of renters were raised in a world of advanced technology and this may play a key role in how you decide on a management system.
Managing property from a distant location is possible as long as you are aware of the precautions to take. It is very easy to set up a simple system so you can enjoy your retirement years and bring in an extra source of income.
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