Sometimes, you can’t live close to a rental investment property that you own. Physical proximity certainly simplifies things, but with the right preparation, being a long-distance landlord is possible. The modern economy offers services and technology that let investors buy property nearly anywhere. That means you can maximize your portfolio. Being a landlord over remote properties is also possible, and doing so has both advantages and drawbacks.
One of the foremost advantages of trying out the long-distance landlord option is more opportunities for investment. If you live in a local area without great profit potential, you can find better possibilities online and then invest in them remotely. Look for places with diverse pools of possible renters, job growth, median income growth, and robust population growth.
On top of expanded investment possibilities, you can also seek additional income. Owning more rental homes means more streams of monthly income. Using a local property management service provider lets you rake in the rent from afar.
Tax deductions can add up to your profitability from a distance. Travel expenses might be involved at times, and if you spend wisely and track all your specific expenses with the right paper trail, you might be due for some write-offs come tax time.
It’s not all fun and games, though. A crucial part of being a successful landlord is picking great locations. Doing this long-distance can mean a lack of familiarity with local markets, leading to possibly questionable or even inferior investment decisions.
In the event of tenant emergencies, you won’t be able to just hop in your car and drive over there. Response times in crucial circumstances will be stunted.
You won’t have as much control over your property. Relying on local help is going to be necessary.
Vendor relationships often make or break investment properties, and if you’re an absentee landlord, you’re going to be at a disadvantage. How often are you going to be there to see how effectively they work? Can they take advantage of you because of the distance?
Using long-distance property management is crucial to your success if you want to manage investment properties from another part of the country. Doing so means you can live where you like without being tied to the local markets you invest in.