New member about to be a long distance landlord
Member since 2024 · 1 post · 0 votes
New member about to be a long distance landlord
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Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
2y@Michael Smythe
Let go of it (the house) emotionally. Tenants will never treat it like you do. Remember they are tenants for a reason. After that, consider the advise given above carefully. I would say an agent who is a property manager should always say hire a property manager or they should not be in the business. A good property managers saves you their fees. An average property manager will cost you more than their fee but you should be able to make money with them. A bad property manager is worse than a bad tenant because you will likely end up with a bad tenant as well.
8 Replies
- Member since 2024 · 25 posts · 9 votes2y
Hey Anthony,
Welcome to the BiggerPockets community! It's fantastic to hear that you're taking the leap into becoming a long-distance landlord. I've navigated this path myself, and I'd be happy to share some insights.
Managing the Property Yourself vs. Hiring a Property Manager
Managing Yourself:
- Control: You have direct control over tenant selection, maintenance decisions, and overall management style.
- Cost Savings: You save on property management fees, which can range from 8-12% of monthly rental income.
- Challenges: Being across the country means responding to emergencies or maintenance issues can be tough. You'll need a reliable network of local professionals (plumbers, electricians, handymen) you can trust.
Hiring a Property Manager:
- Peace of Mind: They handle day-to-day operations, tenant communications, and legal compliance.
- Local Expertise: They understand the local market trends and rental laws in Colorado Springs.
- Cost: While there’s a fee, many find it worth the reduction in stress and time commitment.
Lessons Learned from Experience
- Build a Strong Local Team: Even if you manage the property yourself, having a dependable local handyman and a real estate attorney can save you headaches.
- Leverage Technology: Utilize property management software for rent collection, maintenance requests, and tenant screening. Tools like Cozy or Buildium can streamline processes.
- Understand Legal Obligations: Stay updated on Colorado landlord-tenant laws to ensure you're compliant with security deposits, lease agreements, and eviction processes.
- Effective Communication: Set clear expectations with your tenants about communication channels and response times.
- Regular Inspections: Schedule periodic visits or hire someone to conduct property inspections to catch minor issues before they become major problems.
Final Thoughts
Weigh the pros and cons based on your circumstances. If your new job in New York is demanding, a property manager might be the way to go. However, if you have the time and resources to manage it remotely, it can be a rewarding experience.
Feel free to reach out if you have more questions or need recommendations for property managers in Colorado Springs.
Wishing you all the best on this new journey!
John
P.S. Did you know that Colorado Springs is consistently ranked among the top places to live in the U.S.? According to U.S. News & World Report's 2023 rankings, it's highly sought after for its quality of life and booming job market. 1 This popularity could mean great things for your rental property's demand!
- 2yPreston DeanBusiness MemberRealtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
We had a rental house for a year here in Fort Worth and I never had to show up to the property. We had to have 3 major things done while we had it rented out.
1.The fridge went out so we ordered a delivery and haul away service from Lowes.
2.The oven went out and we also ordered a delivery and haul away service from Lowes.
3. The condenser for the AC went out so I called my HVAC guy and he was there in 3 hours to replace it.
Other than that it was fairly simple and hassle free. But we also had fantastic tenants and they took care of a lot of small issues.
My opinion. As long as you have quality tenants then you should be okay. There are plenty of resources for you to use nowadays or services that can take care of the small things. I would make sure to talk to your local handyman and explain to him you are about to move out of state and would call him if you needed something.
United Real Estate DFW Properties 565 Reviews - Real Estate Agent · Colorado Springs, CO · Member since 2021 · 279 posts · 121 votes2y
Hello @Anthony Abruzzo,
You have some great advice above and managing your own property from another state is definitely doable if you the network in place to address problems as they arise!
As a property manager myself, I would also strongly recommend engulfing yourself into the landlord/tenant legislation that has been put into place over the last couple of years. Many investors claim Colorado is now more restrictive for landlords than California! Although, there is really nothing to be feared as long as you know the laws and treat people fairly.
As mentioned above, finding a quality renter is really where all the heavy lifting is done. Having a robust system in place to vet tenants for the right fit is key to long term success. If you can place the right tenant, many of your other issues will be virtually non-existent.
I would be happy to discuss some of the processes that I use to find quality tenants who want to live in and maintain a quality home. I wish you the best of luck in your journey!
Talk soon!
- 2yMatthew CrivelliBusiness MemberLender · MA · Member since 2021 · 1k+ posts · 1k+ votesYou need someone on the ground in CO to help you if it's needed. Either a property manager, possible family member, or good friend. My cousin rented out his primary in Springfield MA, he moved across the country due to being in the military. If something is needed he calls a family member to in the local area to help / check out the situation. If he didn't have this luxury he would have hired a PM.
Quote from @Anthony Abruzzo:
Hello BiggerPockets community,
I was referred to this community by a local real estate investor in Colorado. I am moving in about 6 months from Colorado Springs to New York for work purposes. I currently own a property in Colorado Springs and I am planning to rent it out as we depart the area. Currently, I am in the phase where I am doing minor fixes to the property and plan to begin looking into property managers. I am still unsure if I truly want to hire a property manager, or if its something I can do myself. I am mostly looking for some advice and lessons learned from others on how leaving their residence and becoming a landlord from across the country went.
Thanks everyone,
Anthony
Freedom Capital Funding, LLC523 Reviews - Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes2y
Quote from @Anthony Abruzzo:
Hello BiggerPockets community,
I was referred to this community by a local real estate investor in Colorado. I am moving in about 6 months from Colorado Springs to New York for work purposes. I currently own a property in Colorado Springs and I am planning to rent it out as we depart the area. Currently, I am in the phase where I am doing minor fixes to the property and plan to begin looking into property managers. I am still unsure if I truly want to hire a property manager, or if its something I can do myself. I am mostly looking for some advice and lessons learned from others on how leaving their residence and becoming a landlord from across the country went.
Thanks everyone,
Anthony
As person who manages (with a decent sized team) over 400 units in 4 states, I would highly recommend you handing off to a property manager. There is literally nothing you can do when you are on the other side of the country. You are being penny wise and pound foolish. Colorado is a very liberal State. You may not legally be able to manage the property from New York.
- 2yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
@Anthony Abruzzo while it is possible to remotely DIY manage, VERY difficult to do with zero experience.
Logical Property Management4.9454 Reviews - Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes2y
@Michael Smythe
Let go of it (the house) emotionally. Tenants will never treat it like you do. Remember they are tenants for a reason. After that, consider the advise given above carefully. I would say an agent who is a property manager should always say hire a property manager or they should not be in the business. A good property managers saves you their fees. An average property manager will cost you more than their fee but you should be able to make money with them. A bad property manager is worse than a bad tenant because you will likely end up with a bad tenant as well.
- 2yNathan MillerPro MemberProperty Manager · Grants Pass, OR · Member since 2009 · 429 posts · 201 votes
We need the little up-arrow emoji to reference other posts here! The advice here is perfect. I too would recommend highly considering a property manager. If you are not there to manage it in person, you have no idea what the tenants are doing to your investment. You need somebody dedicated to managing the property in your absence that already knows, and keeps up with the ever changing landscape of landlord-tenant laws. The cost of a PM is absolutely nothing compared to the cost of placing or keeping a bad tenant or making one legal misstep.
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