Manage an out of state rental by myself?

Manage an out of state rental by myself?

Real Estate Investor · Boston, MA · Member since 2008 · 102 posts · 10 votes

I am moving out of state and am trying to decide how to manage a rental. I have spent a lot on maintenance and improvements over the past few years so I do not anticipate any major issues. I have a list of trusted ppl I have used over the past few years, including a plumber, handyman, electrician. I am planning on screening and finding the next set of tenants for a one-year lease, who ideally would renew in 1 year, but otherwise finding new tenants hopefully won't be an issue until that time.

I thought about paying a person as a property manager but it doesn't seem like there is much for her to do. Even if I only paid 5% of rents/month, I would have to pay 5% + the cost of any necessary work, but if I self-managed it, I could try to diagnose the kind of problem over the phone and instead use the 5% to actually pay for costs and use the existing team that I have. I cannot hire the current handyman I use to manage the property as well as he is well paid and is always booked several weeks out so he couldn't see the property on short notice. 

So if I pay a property manager to not do very much, how much should it be? I know someone who manages rentals nearby and also lives nearby that I could ask for this position. She is more knowledgeable about handywoman sort of stuff than I am, so potentially she could also fix things if needed but I would have to clarify as I don't know her skills.

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  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    11y
    I've heard of out of town investors using a PM only for finding and screening tenants. All other issues are handled by the owner over the phone and then delegated to the various contractors. The PM collects a or time fee for the service.
  • San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    11y

    @Donald M. I think since you know this property, you should start off just managing it yourself.  Most anything can be done with a few phone calls and emails.  And then if you end up needing help with a move-out or move-in, and you can't take time off to fly back and deal with it yourself, you could then do as @Max T. suggests.

    Get some vendors figured out, so you have a list of people to call.

  • Real Estate Investor · Boston, MA · Member since 2008 · 102 posts · 10 votes
    11y

    Thanks for the advice, will plan to manage it remotely and see how it goes!

    @Sue Kelly, I think this is the most important part, will work on getting a list of ppl to call while I am still in the area.

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