Managing out of state investment repairs

General Landlording & Rental Properties
7yFollow

Managing out of state investment repairs

Allen Lopez
Rental Property Investor · Baton Rouge, LA · Member since 2018 · 151 posts · 13 votes

So I am not sure what to do here. I have a single family home in st augustine that I manage from out of state. Great tenants, no issues there. My issue is as far as managing repairs. My roof needs to be replaced (just the shingles). I have found a contractor that sounds great. Has great review...so on. My question is how do you guys manage or oversee repairs on your out of state properties?

I don’t have a property manager. I also don’t think I should have to take a week off and travel there to oversee the project. I don’t want to micro manage but at the same time I want to make sure that they do a good job.

Has anyone had to deal with something similar to this is the past?

Lastly, since I have a mortgage on the property, my loan company needs to endorse the insurance check and do an inspection on the roof. This is free for me. So I wait until they do this inspection to pay the contractor? I paid the deposit with a credit card so they have my information and can technically charge the rest as soon as they finished the job.

Any advice?

1Reply
15 views

Most Popular Reply

Tyler Jahnke
Rental Property Investor · Oakland, CA · Member since 2016 · 341 posts · 643 votes
7y

Do the numbers still make sense if you were to hire a property manager to take over the property permanently?

If not, maybe you can find a temporary project manager and hire them to oversee the repairs, take photos and give you updates...etc.

The bigger item, in my opinion, is: you are the CEO of your real estate business and if you want to scale, you're going to have to hire individuals (and pay them) to run your day-to-day operations.

-Tyler

1Reply
See this reply in the discussion

13 Replies

Jump to latestLatest
  • Tyler Jahnke
    Rental Property Investor · Oakland, CA · Member since 2016 · 341 posts · 643 votes
    7y

    Do the numbers still make sense if you were to hire a property manager to take over the property permanently?

    If not, maybe you can find a temporary project manager and hire them to oversee the repairs, take photos and give you updates...etc.

    The bigger item, in my opinion, is: you are the CEO of your real estate business and if you want to scale, you're going to have to hire individuals (and pay them) to run your day-to-day operations.

    -Tyler

    1Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    7y

    Contractor isnt going to wait on YOUR insurance company . They could be a day , or a month in doing an inspection .  

    0Reply
  • Allen Lopez
    OP
    Rental Property Investor · Baton Rouge, LA · Member since 2018 · 151 posts · 13 votes
    7y

    @Tyler Jahnke

    So this has nothing to do with the numbers. The numbers are good but since this is an A listing with A tenants I don’t feel like a property manager is required. I do agree that at one point when I get enough properties I will have to hire property managers, but I am not there yet

    0Reply
  • Allen Lopez
    OP
    Rental Property Investor · Baton Rouge, LA · Member since 2018 · 151 posts · 13 votes
    7y

    @Matthew Paul

    I agree, and I can pay them that’s not an issue. As far as verifying the work and making sure it’s good. Do out of state investor just typically trust the contractor and take that risk?

    0Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    7y

    @Allen Lopez  As far as verifying the work being done , taking before and after with a cell phone can do that with ease .  Now making sure the work was done "good" or done "right" that can be subjective . It all depends who is looking at it and their opinion.  

    Yon need boots on the ground . You could probably ask the tenant . 

    0Reply
  • Allen Lopez
    OP
    Rental Property Investor · Baton Rouge, LA · Member since 2018 · 151 posts · 13 votes
    7y

    @Matthew Paul

    Yeah I was thinking about telling the tenant to check it out as he is handy. But I was also thinking about just going over there on the last day before the work is completed. It’s only a 4 hour drive each way but I was mostly curious as to what other people do in this case.

    I am sure not everyone has a property manager when dealing with out of state properties

    0Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    7y

    @Allen Lopez  if this is a shingle roof and its less than 25 square and less than a 6/12 pitch , The subs I use will have it done in a day .

    0Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    7y

    @Allen Lopez

    "Do out of state investor just typically trust the contractor and take that risk?"

    I have dealt with contractors for 40 years and can attest to the fact that "trust" has never been a good business practice. Trust is nothing more than Hope, Hope is just another  word for delayed disappointment.

    You need eyes in the field to insure the work is done right, on time and as required.  

    0Reply
  • William W.
    Rental Property Investor · south Alabama · Member since 2018 · 121 posts · 88 votes
    7y

    About the only thing you can do from far away is to call the local building inspector and explain your situation, so maybe they can stop by and check on the work while it’s being done.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    If you think it's expensive to hire a professional, try hiring an amateur.

    That's one of my favorite quotes because it's true yet so many people ignore it. A good PM will cost you less than $2,000 a year on a $1500 rental. One bad tenant can cost you 5x that without even trying. Why not hire a professional that can ensure you get market rates and the investment is protected without the headaches?

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    0Reply
  • Allen Lopez
    OP
    Rental Property Investor · Baton Rouge, LA · Member since 2018 · 151 posts · 13 votes
    7y

    @Nathan G.

    I do agree with getting a property manager. So with this property, I already have a signed lease and was going to get a property manager after the lease ends later this year. I just don’t know if a property manager can take over as of now

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    @Allen Lopez I take over existing tenants all the time. It never hurts to investigate your options early.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    1Reply
  • Jorge Roman
    Member since 2019 · 74 posts · 12 votes
    7y

    I'm actually quite familiar with a company that coordinates maintenance repairs for landlords. They have a fixed monthly cost that's under $40 where they will take all your tenant calls and even find contractors for jobs if you don't have any. I'd be happy to share my experience if anyone in a similar spot wants to message me.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free