Looking to connect with landlords who manage from out-of-state
Hi BP Community!
I am an investor based in California and I'm in the process of offering on small multi-family properties in Cincinnati. I was originally going to hire property management, but for a number of reasons I've decided that I will self manage these properties from out-of-state.
I'm looking to connect with other investors who are landlording from out of state. I'm interested in sharing goals/systems/stories and most of all, to just connect with like minded investors who are tackling the same issues who'd like to chat.
Looking forward to hearing from you all!
I have out-of-state properties, but all are single-family homes that my family and I lived in for a few years and then turned into a rental when the military sent us to a new duty station. Because of that, we have a 'hybrid' approach that we use for managing those properties.
We hire a leasing agent to manage all the items up until the point the tenant moves in (photographing the home, listing the home for rent on the MLS, coordinating showings, accepting applications, screening tenants, accepting security deposit, etc). On the tenant's move-in date, the leasing agent meets the tenant at the property, provides them with the keys and a welcome package that we provide, reviews the lease with the tenant, and conducts a walk-through inspection with the tenant.
As soon as that walk-through inspection is complete, the leasing agent officially hands over management to us and we are self-managing for the remainder of the tenant's occupancy. Since we have previously lived in the homes/areas for 2+ years each, we have built a trusted group of contractors (plumbers, HVAC, electricians, etc) at each location that I can call whenever a maintenance issue needs to be addressed.
This 'hybrid' approach allows us to have the necessary boots on the ground during initial tenant on-boarding & exit. We pay the leasing agent a one-time leasing fee once the tenant is placed, and it eliminates the ~10% monthly property management fee.
@Joel Allen How do you handle evictions?
I’ve been fortunate to not have any evictions so far, although it’s a reality of being a landlord that I’m sure I’ll have to tackle at some point.
Due to the location and marketing of the homes, I typically have military families as renters. That also provides me a couple avenues of recourse (communication with the chain of command, etc) to rectify the situation before we get to the point of eviction.
Quote from @Joel Allen:
I have out-of-state properties, but all are single-family homes that my family and I lived in for a few years and then turned into a rental when the military sent us to a new duty station. Because of that, we have a 'hybrid' approach that we use for managing those properties.
We hire a leasing agent to manage all the items up until the point the tenant moves in (photographing the home, listing the home for rent on the MLS, coordinating showings, accepting applications, screening tenants, accepting security deposit, etc). On the tenant's move-in date, the leasing agent meets the tenant at the property, provides them with the keys and a welcome package that we provide, reviews the lease with the tenant, and conducts a walk-through inspection with the tenant.
As soon as that walk-through inspection is complete, the leasing agent officially hands over management to us and we are self-managing for the remainder of the tenant's occupancy. Since we have previously lived in the homes/areas for 2+ years each, we have built a trusted group of contractors (plumbers, HVAC, electricians, etc) at each location that I can call whenever a maintenance issue needs to be addressed.
This 'hybrid' approach allows us to have the necessary boots on the ground during initial tenant on-boarding & exit. We pay the leasing agent a one-time leasing fee once the tenant is placed, and it eliminates the ~10% monthly property management fee.
Thanks for the insight, @Joel Allen. I am planning on doing a similar approach. Hiring out the tenant placement, then picking up the property management from there.
Hey, I am also a long distance investor out of California. At the end of last year I closed on my first duplex in Minneapolis MN. I have used property management the whole way, tenant screening and actual management of the home. It has gone pretty well so far, definitely a few hiccups, but I don't have the guts to try and self manage out of state. My goal is to use property management until I can move to Minneapolis and begin house hacking (I am staying in Cali until my student loans are payed off). Once I'm down there I'm going to try my hand at self managing to learn the skillset and save a bit of money. What are your long term goals, and what made you choose Cincinnati?
If you use a PM it's really easy but I still recommend walking it at least once a year and having bi weekly check ins with the PM on the state of affairs. Definitely review the monthly statement with a fine tooth comb. @John Dickinson and I have a monthly meeting when ours comes back for our houses in Louisville.
@Liam Delumpa
O am in Israel most of the year
What's my real estate is in Ohio Kentucky and Indiana.
I do everything online including evictions
Posting notices appearing into the cold room etc I hire out per occurrence.
And mind you my expertise is working the c - neighborhoods.
Hello! I live in Alaska and self manage a property in California and one in Indiana. I have used some property management companies, but it has worked best to use a realtor or handymen to do specific tasks for me "a la carte" rather than pay a property manger a monthly fee to do nothing except collect rent and issue a monthly statement. I just had a process server post a 30 day notice to vacate at my place in California. I'm a little nervous about how I will handle getting keys back if the tenant decides to leave on time and not get evicted, but I think I'll figure it out with the help of some local people in a facebook group for real estate investors or possibly with the help of a handyman or process server I know.
@Joel Allen Hi Joel, did you work out the arrangement with your PM when you signed the contract that the PM would handle the exit of the tenant as well as the tenant placement?
I am not an out of state landlord, but I would like to offer my services to potentially help you or others on this post.
I own a construction management company (Mainstay Construction) and have project manager to stay on top of my rehabs in Indianapolis, Louisville, and within a month Cincinnati. My group specializes in working with out of state or remote clients and have the resources to schedule/take pictures of properties, schedule inspections, and refer property managers and realtors who are well-known in any of the three above areas on top of managing all your construction needs.
I would be more than happy to help any/all of you with whatever your needs might be!
Thanks!
How do y’all work out the pay structure with your “a la carte” folks working for you?
@Kelly Bankes I try to figure out what they expect to get paid per hour and then come up with a per visit rate I can offer them. For example, one PM whose office is about 30 minutes from my rental home in IN told me she didn't really want to take on my house because she pays her people a set hourly rate plus mileage. She figured it would cost $30-$35 per visit to go out to my property. Then I found someone who lived in the same town as my property and offered her $35 per visit to go to my place for inspections or to meet a repair person. Maintenance / lawn care people people are used to bidding by the job. So you can talk to them on the phone and describe the work and sometimes get a rough estimate by phone if it is something simple. Like lawn care for a back lawn that is about 40 ft x 30 ft and front lawn is 30 ft x 10 ft is going to be $30 every 2 weeks, etc