Property out of state

3 Replies

If you have a property in florida and (for example) you live in California..

How do you go about taking care of the property?
How do you show the property to other possible tenants if it becomes vacant?
and so on --
WITHOUT the use of property management, or is that the only option?

Thanks.

Loving this forum

You make friends with your neighbors in particular an old retired one that likes to talk and sit on the porch.  Don't laugh these people will call you in the middle of the night if they see your tenant sneaking out or doing anything suspicious.  Or buy buildings near property where people whom you trust live nearby.  They will normally let you know what is going on and you can have your tenants contact them for small things.  You do not pay these people a salary just give them a gift card every now and then to let them know you appreciate them.

Go to the local reia and ask neighbors about handymen in the area.  One person I know goes to openhouses in the area. If the house is nice, she asks which contractor do they use.  From there you create a contact list and give to your tenants.  When something serious goes awry either they or you will contact the contractor, plumber, electrician, locksmith to have the problem resolved.  They can email or mail you receipts for the work that was done.  In some states like GA the tenant is responsible for the lawn care, garbage etc.  In other states like NY you can hire someone for $200 a month to take care of the garbage, lawn, and shovel snow.  If you sell the home to lease option buyers they are responsible for the place anyway. 

An experienced realtor (relocation specialists) that your neighbors or the local reia recommends can show your place to prospects. You set up a bank account and have the tenants deposit rent checks in there.   Some hospitals and companies (law firms, brokerages) pay you the rent directly for their new hires.  You can also post ads on hospital and military websites to indicate you have an apartment available for rent.

There may be times when you will have to travel to see the place and for upkeep. If you have under an LLC or DBA you should be able to deduct the traveling expense.

Originally posted by @Joshua Cassino :

If you have a property in florida and (for example) you live in California..

How do you go about taking care of the property?
How do you show the property to other possible tenants if it becomes vacant?
and so on --
WITHOUT the use of property management, or is that the only option?

Thanks.

Loving this forum

Unless you want to fly out there to show the property every time it's vacant or needs repairs, you definitely want to have a property manager. Yes, it's an added expense, but a good property manager is definitely well worth the money. 

We invest remotely with a property manager and it's worked out great, you just need to make sure you're working with a good PM. There are a million awful property managers out there for every good one, so look carefully. There's tons of great info on the forums about how to vet PMs. 

Completely agree with @Mark F.   I do own property where we have onsite staff and property management.  Is it possible to have the management done with a formal management company?  I suppose.  But, to Mark's point I'll gladly pay the 5% for the added professionalism and stability that a good property manager brings.