Self-managing in Indiana from out-of-state

Managing Your Property
3yFollow

Self-managing in Indiana from out-of-state

Adam S.
Rental Property Investor · Louisville, KY · Member since 2020 · 36 posts · 25 votes
Hello.  I'm considering self-managing a rental in Indiana from out-of-state.  However, Indiana Code 32-31-3-18 (IC 32-31-3-18) states that landlords are required to disclose in writing the names and business addresses of: a person residing in Indiana authorized to manage the premises and a person residing in Indiana who is reasonably accessible to the tenant and who is authorized to act as agent for the owner for service of process and receiving notices and demands.  Does that mean that I cannot self-manage?  Do I need to hire a property manager in Indiana?  Thank you in advance.
1Reply
109 views

Most Popular Reply

Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Adam S.:
Hello.  I'm considering self-managing a rental in Indiana from out-of-state.  However, Indiana Code 32-31-3-18 (IC 32-31-3-18) states that landlords are required to disclose in writing the names and business addresses of: a person residing in Indiana authorized to manage the premises and a person residing in Indiana who is reasonably accessible to the tenant and who is authorized to act as agent for the owner for service of process and receiving notices and demands.  Does that mean that I cannot self-manage?  Do I need to hire a property manager in Indiana?  Thank you in advance.

They want someone local that can respond when called, that watches the property, etc. Long-distance Landlords typically let properties deteriorate or allow bad tenants to damage a community.

A good PM watches your property, inspects the interior regularly, choose solid renters, removes bad renters quickly and efficiently, reduces vacancy, handles maintenance quickly, keeps your property at market rates, stays current on the laws, and much more. Very few Landlords can manage from a distance and match the performance of a good PM. On top of that, you'll get your time back and won't have to stress about it.

Doing it yourself may actually cost you money instead of saving you 10%.

The DIY Landlord Book4.7247 Reviews
WebsiteView Page
3Reply
See this reply in the discussion

17 Replies

Jump to latestLatest
  • Brennen Thompson
    Investor · Tampa, FL · Member since 2020 · 52 posts · 42 votes
    3y

    Hey dude!

    We're actually in the process of starting to do some more self managing as well (by making some hires). If you're going to be using a platform like Rent Ready or Apartments.com to manage the rental and you want to stay hands off it might do you some good to find an agent in the area that places tenants/can be your boots on the ground when you need them. Usually they'll take a fee for their services, but it might be a way for you to get over the legal hump 

    2Reply
  • Adam S.
    OP
    Rental Property Investor · Louisville, KY · Member since 2020 · 36 posts · 25 votes
    3y
    It might be something I need to look into. In my case, I'm right across the river. I may not reside in Indiana, but I can respond quicker than someone in northern Indiana. Thanks!
    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    I advise against self managing, especially when you're out of state. Too many local laws and too many hands you are putting trust in, depends on how passive you want to be i guess. 

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Adam S.:
    Hello.  I'm considering self-managing a rental in Indiana from out-of-state.  However, Indiana Code 32-31-3-18 (IC 32-31-3-18) states that landlords are required to disclose in writing the names and business addresses of: a person residing in Indiana authorized to manage the premises and a person residing in Indiana who is reasonably accessible to the tenant and who is authorized to act as agent for the owner for service of process and receiving notices and demands.  Does that mean that I cannot self-manage?  Do I need to hire a property manager in Indiana?  Thank you in advance.

    They want someone local that can respond when called, that watches the property, etc. Long-distance Landlords typically let properties deteriorate or allow bad tenants to damage a community.

    A good PM watches your property, inspects the interior regularly, choose solid renters, removes bad renters quickly and efficiently, reduces vacancy, handles maintenance quickly, keeps your property at market rates, stays current on the laws, and much more. Very few Landlords can manage from a distance and match the performance of a good PM. On top of that, you'll get your time back and won't have to stress about it.

    Doing it yourself may actually cost you money instead of saving you 10%.

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    3Reply
  • Clay SmithBusiness Member
    Investor · Louisville, KY · Member since 2013 · 419 posts · 244 votes
    3y

    When I read the following it tells me that if you do not have someone in Indiana then you become the "someone". Michelle Rawn or John with Rawn Law Firm handles LREI Property Management LLC evictions in Indiana and they can answer more. I do not believe this ever comes up in court.

    (c) A person who fails to comply with subsection (a) becomes an agent of each person who is a landlord for purposes of:

    (1) service of process and receiving and receipting for notices and demands; and

    (2) performing the obligations of the landlord under law or the rental agreement.

    LREI Property Management LLC4.6453 Reviews
    WebsiteView Page
    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Adam S.:
    Hello.  I'm considering self-managing a rental in Indiana from out-of-state.  However, Indiana Code 32-31-3-18 (IC 32-31-3-18) states that landlords are required to disclose in writing the names and business addresses of: a person residing in Indiana authorized to manage the premises and a person residing in Indiana who is reasonably accessible to the tenant and who is authorized to act as agent for the owner for service of process and receiving notices and demands.  Does that mean that I cannot self-manage?  Do I need to hire a property manager in Indiana?  Thank you in advance.

     I highly recommend you hire a PM co. Do you know how to evict? What about repairs, most get ripped off without even knowing it. What about permits, and inspections. You want the Sunday morning call, NO heat, or water leak etc. How are you going to screen the tenant, who's going to do the move in, and move out ?  Why deal with any of the headache, the PM fee is meaningless. Its all great until there is an issue, then the aggregation far out ways the small PM fee 

    All the best 

    0Reply
  • Will Fraser
    Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
    3y
    Quote from @Nathan Gesner:

    Doing it yourself may actually cost you money instead of saving you 10%.

    Well said!
    0Reply
  • Tyler LingleBusiness Member
    Real Estate Consultant · Indianapolis, IN · Member since 2021 · 440 posts · 292 votes
    3y

    Don't self manage. What's the value of your time? You'll give up about 1-2k max per year but free yourself up from all the emotional drain. Emotional drain = limited amount of bandwidth to pursue later deals. 

    [email protected]
    Roots Realty Co. 562 Reviews
    WebsiteView Page
    0Reply
  • Pam Brown
    Real Estate Agent · Indianapolis IN · Member since 2022 · 144 posts · 65 votes
    3y
    Quote from @Adam S.:
    Hello.  I'm considering self-managing a rental in Indiana from out-of-state.  However, Indiana Code 32-31-3-18 (IC 32-31-3-18) states that landlords are required to disclose in writing the names and business addresses of: a person residing in Indiana authorized to manage the premises and a person residing in Indiana who is reasonably accessible to the tenant and who is authorized to act as agent for the owner for service of process and receiving notices and demands.  Does that mean that I cannot self-manage?  Do I need to hire a property manager in Indiana?  Thank you in advance.
    Hey Adam.  Yeah, I think that you would be happier to hire a local pm company.  I can help you with that if you like.  I can have our pm BDM reach out to answer any of your questions.  You do have the option to dispatch your own contractors if that part is important to you.  They just have to be licensed and added to the vendor list. Let me know if you would like more info.  
    0Reply
  • Adam S.
    OP
    Rental Property Investor · Louisville, KY · Member since 2020 · 36 posts · 25 votes
    3y
    Thanks, everyone!  I will take all your opinions under advisement.
    0Reply
  • Jack Mawer
    Lender · Member since 2022 · 338 posts · 374 votes
    3y

    Be sure to have people you trust located near your investment property that can check in on things

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    You'lll need to hire someone local that can be your "agent", who should also be prepared to represent you in court (accompanied by an attorney of course).

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
    WebsiteView Page
    0Reply
  • Luke H.
    Real Estate Investor · Dallas, TX · Member since 2013 · 388 posts · 174 votes
    3y
    I'm not a lawyer, but

    "states that landlords are required to disclose in writing the names and
    business addresses of: a person residing in Indiana authorized to manage
    the premises and a person residing in Indiana who is reasonably
    accessible to the tenant and who is authorized to act as agent for the
    owner for service of process and receiving notices and demands. "

    sounds to me like you just need to disclose in writing name and business address of someone in Indiana authorized to manage the premises."  Couldn't you hire a friend for a few bucks to use their name, and you can use your own po box in Indiana?
    0Reply
  • Darin MoonBusiness Member
    Real Estate Agent · Indianapolis, IN · Member since 2020 · 18 posts · 5 votes
    3y

    Hey Adam, 

    Sounds like you are getting a lot of different advice. I am a BP preferred agent, local investor, and property manager. Not looking to have you hire us but I do have contacts and GC lists and I would be happy to help and advise where I can as long as its in range of me. Message me directly if you want to connect. 

    Thanks

    Darin

    [email protected]765-618-0867
    Darin-Moon Sycamore Realtors4.817 Reviews
    WebsiteView Page
    Sycamore Realtors and Managment
    WebsiteView Page
    0Reply
  • James Sebastian
    Member since 2021 · 58 posts · 27 votes
    1y

    So I have essentially the same question as the original poster, and I understand the well-meaning advice, but this is more a case of trying to stay legal while renting to a friend of my daughter... Does the statute require an Indiana resident property manager, or simply the disclosure of contact information if there is a manager?  Thanks!

    0Reply
  • Becky KlingeleBusiness Member
    Terre Haute, IN · Member since 2017 · 8 posts · 0 votes
    1y

    What part of Indiana is your property? I may be able to recommend a more flexible and affordable option than full-service property management.

    Preferred Realty51 Review
    WebsiteView Page
    0Reply
  • Ryan RomingerBusiness Member
    Real Estate Broker · Indianapolis, IN · Member since 2018 · 340 posts · 144 votes
    1y

    Hey! Good on you for digging into the legal side—IC 32-31-3-18 doesn’t mean you can’t self-manage, but it does mean you’ll need to designate someone in Indiana to fulfill those two roles:

    1. Someone local to manage the property (this can technically be you if you live in Indiana—though in your case, you’re out of state).

    2. Someone in Indiana who can legally receive notices or service of process on your behalf (basically a local contact or registered agent).

    So nah, you don’t have to hire a full-blown property manager, but you do need to have a local person—could be a friend, relative, attorney, or even a registered agent service—on file and accessible for those legal responsibilities. Hope that helps!

    [email protected]317-935-0075
    Intrigue Real Estate & Property Management4.6285 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free