Considering self managing a rental over an hour and a half away

Considering self managing a rental over an hour and a half away

Queens, NY · Member since 2015 · 130 posts · 34 votes

I would like to hear some fresh perspectives and ideas from the community on how to go about making this a feasible situation. Since all I can do during my capital accumulation phase is read and think about REI, I end up giving myself anxiety about imagining all the potential headaches that could occur. I've tried to remain positive and think creatively about how I would solve hypothetical scenarios that come to mind.

Since most emergencies require police, fire departments etc., few situations should necessitate my immediate presence as a landlord. If I get a call about something not working, and they want me to come take a look? Sure, have a video call to see if it's something I can diagnose remotely. Doctors are literally seeing people via phones and tablets nowadays, even prescribing medicine. Landlords should take advantage of this. Contractors need to work on the place while vacant? Install a lockbox outside, install IP cameras inside. Send contractor the code, cameras turn on so you can keep an eye on things from your phone at work. You're good to go. 

I understand that many situations will require my presence, and if I get a bad tenant, or a bad contractor, those methods will cease to work. Tenant could be hostile, contractor could still screw me over. So really, it looks like screening will be the most important factor. I'd be interested if some of you could either poke some holes in all this, or just offer advice based on what you've gone through as a landlord that wouldn't have survived if you were this far away from your property. 

2Reply
206 views

Most Popular Reply

Professional · Atlanta, GA · Member since 2015 · 63 posts · 30 votes
10y

I think it really depends on (a) the network of contractors you can put into place (b) the quality of your property and (c) the quality of your tenant.  

I have a rental around the street for the same reasons you were thinking of.  But I never have to go there - it could just as well be across town or in another state if I had the network set up and a solid property.

See this reply in the discussion

35 Replies

Jump to latestLatest
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    You wont actually have to go to your property that often if it is in good condition.  I have one property I go to about every other month, and the other properties I get to about once every 6 months.  Most things a tenant will call with can be diagnosed over the phone to know if it is something you need to  see your self, or if you should just call a plumber, or electrician. Ive actually self managed one property that is in Boston, and I live in DC. In that situation, I had to get a little creative, and pay someone to go see the issues as they arose.

  • Nathan MillerPro Member
    Property Manager · Grants Pass, OR · Member since 2009 · 429 posts · 201 votes
    10y

    A rental an hour and a half away wouldn't be for me.  I just think about all the times when I was managing my rentals that I would get a call from a tenant about a leaking sink or a furnace that won't heat.  I was always tempted to drop in first to see if it was an easy fix before hiring a pro because a heating contractor visit to push the mode button on a thermostat costs just as much as one to fix a real issue.

    I also subscribe to the theory that I need to be able to frequently see what I own.  If I can't see it, I need to hire somebody who frequently reviews it and inspects it.  Otherwise, without that, you don't own it, the tenants do.

    If you do go for it, having a handy-man on retainer in the area would be a super good idea.  Of course, make sure you screen very well and only put A+++ tenants in there too to avoid the complications of bad tenants.

  • Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    Thanks @Russell Brazil. Do you consider your properties to be A,B or C class? Have you had tenants that have caused you to visit more than normal?

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    My properties are typically A/B nieghborhoods.

  • Professional · Atlanta, GA · Member since 2015 · 63 posts · 30 votes
    10y

    I think it really depends on (a) the network of contractors you can put into place (b) the quality of your property and (c) the quality of your tenant.  

    I have a rental around the street for the same reasons you were thinking of.  But I never have to go there - it could just as well be across town or in another state if I had the network set up and a solid property.

  • Meridian, ID · Member since 2015 · 16 posts · 4 votes
    10y

    As mentioned above, it is all about tenant quality.  We have one two hours away in a B neighborhood and we screened intently.  I go down once in the spring for maintenance and once in the fall again.  We have a retired handyman who we call to go check on small things for us who is very reasonable.  In fact, he just recommended someone to replace our vinyl shutters and he is doing it for half the cost of the other three estimates.  The house is in good condition so we don't get too many call either.  I don't think we would consider if the house was in poor shape.  Best of luck!

  • Lender · Haverhill, MA · Member since 2016 · 60 posts · 21 votes
    10y

    Sean,

    I have friends who have some distance properties. One of my close friend's from Texas is building a portfolio about 4 hours away and purchases houses that need work, that's the hardest part for him. He buys the houses does the work upfront and that way he doesn't have to worry much about maintenance. Also I should mention he does sfr for the distance investing. Also another one of my close friends lives near me (the border of MA/NH), purchases houses to live in rehab and resell locally, but owns a multifamily about 5 hours away. He goes out there maybe once every 6 months for a weekend to do a some work on the place. He's done well by getting longterm tenants that understand upfront that they will be at a distance and wont be seeing them much. I hope this helps. If you want to know more send me a message and we'll talk more.

    Always with my best,

    Chris

  • Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    @Nathan Miller thanks for chiming in and sharing some potential cons to this. When you say handy-man on retainer in the area, I assume you're not referring to a PM. I have thought about getting someone to stop by for things that need further investigation but wouldn't have to pay 10-12% of gross annual rents to. Hopefully I can work something out with an individual that would be willing to do that for a fair price.

  • Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    Thanks @Pam Storm. Experiences do seem to differ. Hopefully I'm able to refine the screening process, and work things out with any tenants to avoid having to constantly visit. 

  • Professional · Atlanta, GA · Member since 2015 · 63 posts · 30 votes
    10y

    @Sean Tracey I've done screening since 2006 and helped vet over 16M applicants for clients.  You'll do just fine.  PM me if I can help.  

  • Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    Much appreciated @Brian Winn. That sounds like exactly the situation I would like to make happen for myself. Great to see you making things work from a bit of a distance. I'll need to check out J Scott's book about estimating rehab costs. I bet there'd be a lot of great info in there to help me understand the conditions of properties. I want to make sure I'm proactive about getting the place in shape, so I don't have to patch things up constantly. 

  • Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    Thanks @Christopher Richardson. I'm considering purchasing houses that need work too, just trying to figure out financing options for that since traditional probably won't work. I'd be about 2 hours away, and my job is pretty flexible. Good to know that your friend made it work while being double the time away. Appreciate you sharing this info, it's very encouraging to read. 

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    10y

    For showings are you hiring a relator just to place someone?  or  will you set up an open house and do it yourself?

    For tenant issues one factor that can contribute is the tenant, not just screening well but if they are overly needy or to put it kindly not the brightest.  These type of tenant you can't necessarily screen out and they can cause more calls.  These are the ones that can't figure out the battery is dead in the thermostat or they replaced it wrong. Or the needy ones who just complain about non issues.  The first can cause you some  problem (and they  won't be able to do  a video chat).   Maybe the heat goes out and they need to push the button because they ran out of oil.   The cure for that is making things as idiot proof as you can, doing anticipated maintenance,  and requiring  that they  use  your video  chat before there is an issue. If that doesn't work don't renew their lease. I do own rentals 90 minutes away so I have run into this type of tenant. Doesn't know how to plunge toilet. etc... you just have to work through it.

  • Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    Thanks @Colleen F. I may consider hiring someone to place a tenant. I'll probably want to try it myself for the first go around, though. Hopefully I can weed out enough people with my criteria e.g. credit score, income to rent ratio etc. 

    I've thought about what you're bringing up regarding tenants that just aren't the brightest. I feel like what may look good on paper as far as a clean record does not translate to someone that won't pester me for every little thing. I've read some good threads about "training" tenants, although I consider that to be a condescending way to put it. I'd hope I can set a tenants expectations accordingly and by my responses let them know whether or not they should be bringing certain things to my attention. And like you say, in the end I can choose to not renew a person's lease if I don't feel they're a good tenant. Thanks again for your input.

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    10y

    @Sean Tracey in my area you can hire property management companies for tenant placement only. They will charge a flat fee like 75% of a months rent, but still that saves you lots of travel getting tenants in. Other emergencies include plumbing leaks so have a local plumber selected that has emergency service. Find a handyman that is local.

  • Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    Thanks @Joe Splitrock. Those are some great tips. 

  • Investor · Albuquerque, NM · Member since 2015 · 29 posts · 9 votes
    10y

    An hour and a half wouldn't worry me. Now, if the property were in poor shape, it would be different. I have a rental an hour away and it causes me no grief. The important thing is to have local workers you can call. In my case, I have a handy man that trusts me to mail him a check to get things done. 

  • Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    10y
    Originally posted by @Russell Brazil:

    You wont actually have to go to your property that often if it is in good condition.  I have one property I go to about every other month, and the other properties I get to about once every 6 months.  Most things a tenant will call with can be diagnosed over the phone to know if it is something you need to  see your self, or if you should just call a plumber, or electrician. Ive actually self managed one property that is in Boston, and I live in DC. In that situation, I had to get a little creative, and pay someone to go see the issues as they arose.

     For rentals?? I don't think I've even been in my rentals in 2015 or 2016. What kind of property rental do you own, that you have to go there every other month?

  • Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    @Andrey Y. he's probably a responsible landlord that wants to keep an eye on his investments. What kind of landlord, not relying completely on a PM, wouldn't visit their properties in over a year? 

  • Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    10y
    Originally posted by @Sean Tracey:

    @Andrey Y. he's probably a responsible landlord that wants to keep an eye on his investments. What kind of landlord, not relying completely on a PM, wouldn't visit their properties in over a year? 

     Lots wouldn't. People with the same tenants for 5-10+ years wouldn't. Out of sight, out of mind. If you have A or B tenants, with frankly not a lot in the unit that could be "destroyed" (although it never would be), then why go to check up on the unit? "Oh by the way, could you fix this? Oh see that little chip of paint, fix this please" etc. you see where I am going with this.

  • Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    @Andrey Y. I would never depend on tenants, no matter what class, to keep tabs on my investment. I'm not saying I would visit frequently, but there would be no more than a 6 month gap before I stopped by to proactively inspect the condition of the property. If they happen to make any legitimate repair requests, I'd be glad to take care of them before they turn into something bigger/more costly down the line. 

  • Investor · San Diego, CA · Member since 2013 · 19 posts · 16 votes
    10y

    I have 9 SFRs in 2 different states, AZ and TX, and I live in California.  I also have a 4plex in California that is professionally managed, as it is in a tougher neighborhood to manage.  But we manage the AZ and TX properties ourselves - we have a really good leasing agent and leasing criteria, and focus on screening tenant, so generally we have great tenants, and they are responsive, prompt payers of rent, and let us know immediately if there is an issue at the property.  We've worked and developed relationships with really good contractors in both areas, and for larger projects over $500 get at least 2 bids, usually 3. 

    Unless you plan to do the work yourself, there really to me is no material downside to managing the properties yourself.  I know there are good property managers out there (we have one in San Diego), but the cost of property management really eats away the majority of your cash flow in the long-term, and ultimately no one is going to be as focused on your property as you are, even if you are long distance.  I visit the properties once a year, but also talk to contractors that go in and do work about how things are looking periodically.  Hope this helps.

  • Surprise, AZ · Member since 2016 · 58 posts · 20 votes
    10y

    Some of these points may have already been outlined...This is how i look at it and it works for me.

    I own all my properties in my LLC's as i want separation between myself and (litigation)...I have property management in place on all my rentals as i:

    1) Don't want a "landlord" job. I'm an investor, not a landlord

    2) Want separation between myself (the owner) and my tenants. We dont need to know each other.

    This is how i look at my investments. I factor in an additional 10% (prop mgmt fee) when i purchase properties.

  • Queens, NY · Member since 2015 · 130 posts · 34 votes
    10y

    Thanks @Brian Wolfe. Your info is extremely helpful. That sounds like a great team and system you've built for yourself. Impressive portfolio to be managing yourself. How far of a drive is it to your properties in AZ and TX? 

  • Fresno, CA · Member since 2015 · 145 posts · 59 votes
    10y
    Sean Tracey I've been managing a few rentals about 4 hours away for close to 7 years. It's do-able. I have a great maintenance guy who works for a large apartment complex (so understands tenant relations) but does my work on the side. It is scary to buy somewhere that takes some time to get to but if that's your only gripe just go for it. A lot of others may disagree but for me I'd rather have a property an hour and a half away than no property at all. I bought in Fresno but lived in LA at the time. Much more manageable market.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.