Recommended max distance for a self managed rental?

Question

I'm trying to find my first property, buy and hold / rental.  What is the maximum distance / time you would recommend my search be contained to?

As a related question, if I bought a duplex, am I on the hook for landscaping, such as keeping the lawn mowed?  Or does anyone have any creative ways to keep this as a tenant reponsibility?  This would be related w/ regards to me having to travel to the property to keep up w/ the work.

Thanks in advance for any input!

Jake C. · Answer

Scott, good point w/ the "3 day notice" example.  Stuff like that could get very frustrating if I'm looking at 1.5hrs or more round trip.  I would also love to invest in my neighborhood, but similarly, it does not make financial sense.  If only life were so easy  :D

- Jake

Scott R. · Answer

Think about it this way, if your managing it yourself, how far do you wanna drive to simply post a "3 day notice" when they dont pay, how far do you wanna drive when they say something is broke. I live about 15 minutes from mine, would go 30 but not more. Now im spoiled and live in a small town of 200k(ish) when I lived in Tucson I drove an hour just to work everyday. Alot depends on your area, Id love to invest where I live (neighborhood) but it doesnt make sense to, so I dont. 
 -Scott

Jake C. · Answer

Thanks you all for your replies, much appreciated.  I think I'll definitely be trying to keep it within 45 minutes.  Hopefully, if I end up with a duplex, I can find a reliable 3rd party to handle the lawn maintenance.

Frank, out of curiosity, you said, "back when I was doing rentals", what are you doing now (as far as REI is concerned)?  Any particular reason you got out of the rental game?

Rich Schroeder · Answer

I live 35 minutes from mine, and that is definitely doable. I personally wouldn't go more than 45 minutes. Make sure you are always prepared...keep tools in your vehicle, all rental forms, business cards...at all times. You never know when you will need something. I do single family homes, so they mow their own lawn, shovel snow, etc. For a duplex you can just split up the yard in half. One unit does one side, the other mows the opposite side. Read up on this forum for more tips, there's plenty of information here!

-Rich

Frank Adams · Answer

Back when I was doing rentals I wouldn't even look at anything more than about 45 minutes away. Even when I was doing multi-year leases (leads to better tenants and even longer stays) I didn't modify it.

This was back before cell phones so before heading home after a showing I'd have to go to a nearby phone booth and check my messages.

On the lawn maintenance I'd probably go with an outside service (unless you're going to do that yourself) for the simple reason is that having one tenant doing something while the other doesn't just sounds like a great way to have problems between them; "John pays less than I do", "Yeah but he does the yard", "yeah but I'd do it better and cheaper", or "he doesn't do a good enough job".

No thanks, build in a proportional amount and eliminate that problem.

Just my two cents.

Frank

Richard J. · Answer

Hello!  Happy 2010.  In regard to common expenses of a rental, these are negotiable between the Tenant and Landlord, whether written on a napkin like in the old days or by using a more formal legal looking form, as long as there is a meeting of the minds and the document is fully executed without duress, you have a bonafide contract. So if you state in the written agreement that tenant is to pay all utilities to include but not limited to, blah, blah, blah, and if all adult parties sign, you have a legal contract.  Good Luck! -- Dawn