Many property investors choose locations far away from their real-world homes. And, it is perfectly feasible for them to have a lot of success. That said, there are many problems they can encounter. You need to make yourself aware of them if you plan on buying and managing a property in an entirely different location.
We’re going to go through some of these issues with you today. Read on to find out how you can make long distance real estate investing work – and about some of the benefits. Let’s get started right now with some of the basics.
Not everyone has the chance to live in a beautiful area – but everyone has a chance to invest in a property somewhere more attractive. By and large, you have complete freedom to find the perfect location anywhere in the country – and in most places across the world. So, if you are looking to fund a future home or even enjoy some tax deductions, try investing in real estate in another location.
Learning about the new area
Your first step is to make sure you know the area like the back of your hand. Do your homework, and get the help of a local real estate agent that knows the local housing market. You can also learn a surprising amount from online services like Trulia.com, of course, but always back it up with knowledge from a local.
Getting to know the locals
A good realtor is only one service on the list of people you will need to rent out property. The simple fact is that you won’t be around when your tenants have an issue – and you will need to rely on local service people. Plumbers, handymen, and electricians are essential, of course. Review their services and find someone who you trust. This way, your property will be in the safe hands of professionals.
Set up regular payments
Rent collection can be tricky when you are living on the other side of the country. So, it is vital that you set up automatic payment systems for your tenants. As long as the money hits your account on a particular day of the month, you know that everything is covered. Getting paid on time is always a critical part of a successful property rental business. So, set up automatic reminders for your tenants, too. A simple text message or email is a great way to remind them of their upcoming rent.
Finding a management firm
You can also look for a local management firm to work on your behalf. They will take care of most things for you, on a day-to-day basis. Of course, there will be a charge for using their services, but if it frees up your time, it can be worth it. Expect to pay anything from ten percent of your rental charge – so make sure you aren’t running at a loss after you pay your home loan.
OK, so that’s all we have time for today. We hope these tips help you realize that, yes, it is possible to buy and manage a property from a long distance. Good luck!