7 Things to Know About Long-Distance Real Estate Investing

Not all neighborhoods offer properties that can help generate passive income through rent payments, but long-distance real estate investing can help you get around that. Thanks to the internet and smartphones, it’s now easier than ever to purchase a property in a different state and manage your properties remotely. 

However, remote real estate investing needs to be treated differently than managing a local rental property, since there’s a higher risk involved. That’s why we outlined seven things to know about long-distance real estate investing to keep in mind when getting started in real estate.

7 Tips for Long-Distance Real Estate Investing

Long-distance real estate investing is a great way to get started in real estate if you live in an area with low demand for rentals. However, there are more risks associated with managing a rental remotely, since you’re not able to be as present as the landlord. 

To help you along the process, here are seven tips on remote real estate investing that are important to keep in mind.

1. Research Markets You’re Interested in

Research markets you’re interested in to check the demand for rentals and the types of properties available. Rental reports, like the Realtor.com® Rental Housing Forecast, share insights on rental market trends and predictions that landlords, tenants, and real estate investors can expect in the upcoming year. 

There are also certain things you’ll want to look out for in a rental property, such as property taxes, local schools, average rents, amenities, and property history before looking to buy. By researching markets you’re interested in and the current rental market, you can get a better understanding of which markets are worth investing in. 

2. Check Your Property’s Profitability

Finding a rental property that meets your criteria is just the first step of real estate investing. You’ll also want to make sure the property can help generate passive income that can cover operating expenses or other property-related costs. 

After totaling your operating expenses and determining a rent price, use a rental property calculator to see if the property you’re interested in would be profitable.

3. Find Reliable Contractors

The key to long-distance real estate investing is finding a team of reliable contractors that can help fix maintenance issues or be the go-to person for your tenants. Platforms like Yelp, Thumbtack, and TaskRabbit are good resources to use to find highly-rated contractors to rely on. 

You can also hire a property manager close to the property to manage all maintenance and repair issues. If you do decide to hire a property manager, you’ll want to ensure they’re aware of local landlord-tenant laws and local ordinances they’ll need to abide by when managing your tenants. 

4. Implement a Solid Tenant Screening Process

Implementing a strong tenant screening process increases the likelihood of finding a tenant that pays rent on time and takes care of your property. You can request a rental application, credit check, criminal check, and eviction check to get a full picture on prospective tenants. Some states restrict exactly how much a landlord can screen a tenant, so make sure the process you implement does not violate local regulations. 

5. Request Videos and Photos of the Property

Thanks to smartphones, you can now request videos and photos of your property from your tenants throughout the lease term. Videos and photos allow you to see the current state of your property or get a better look at maintenance issues. However, it’s important to never rely solely on videos and photos since they can be easily manipulated by the sender. 

6. Schedule Annual Visits 

It’s important to schedule a visit at least once a year to get a closer look at the current state of your rental. Most states do not allow the landlord to show up to the property without proper notice, so your tenants will need to be notified before the visit.

During the visit, you can thoroughly check your property and ask your tenants about any issues they may be experiencing.

Looking for an Experienced Residential Property Manager?

If you have a home to rent in the Orlando area be assured there is no substitute for experience. Covering Clermont, Winter Garden, Windermere, Dr Philips, Kissimmee, Davenport, Champions Gate, Hunters Creek and Haines City. We remain focused on this greater Orlando area to ensure we are able to provide outstanding service to our Clients without sacrificing performance. Looking for an experienced residential Property Manager in the Orlando area with a demonstrable track record – look no further.

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