How to self-manage out-of-state property

Question

Hi! I'm just starting out an RE journey and am thinking of my first property this year. The thing is, I will be moving out of the current state leaving myself to either self-manage or hire a PM for my property. I am leaning towards the self-manage option and got several questions regarding self managing a property while living out of state. I will be buying a multifamily property in a landlord-friendly state without any rent control. My questions are:

1. How should you handle showing of the units?

2. How do you conduct move-out inspection and cleaning once a tenant moves out?

3. Is there specific tool you like to use in order to manage your property in regards to rent collection, report maintenance issue etc.?

4. Any other stuff that I should be aware of when trying to self-manage a property?

I think a lot of people here in biggerpockets like to advise people to have a PM. I do understand how PM can handle all the hassle, but I would appreciate if someone could provide me an insight with 'self-managing' as I already have found abundant resources around using a PM! Thanks in advance.

Eric Fernwood · Answer

Hello @Yooni Choi,

While managing an out-of-state rental property yourself might seem like a money-saving strategy, the reality is much more complex. Drawing from my experience delivering over 550 investment properties, I can say with certainty that self-management isn't practical for most investors. In fact, even with my extensive experience, I choose to have all my properties professionally managed.

Here's why:

Tenant Selection Is Critical

The most valuable service a property manager provides is selecting reliable tenants. The wrong tenant can lead to non-payment, evictions, and property damage. Finding someone with the expertise to screen and place tenants properly is rare. Personally, after working with numerous property managers in Las Vegas, I only trust two to handle this task for my properties.

Compliance Is Complicated

Property management involves navigating a maze of city, state, and federal regulations. Professional property managers stay updated on legal requirements through memberships in state or national organizations. Unless you're monitoring these regulations full-time, it's easy to make costly mistakes. Even a single error could cost you more than years of property management fees.

Understanding Tenant Behavior

Properties don’t pay rent—tenants do. A skilled property manager understands tenant segments and their behaviors, which helps attract reliable renters. They can also guide you in choosing properties that appeal to dependable tenant demographics.

Access to Reliable Vendors

Property managers have established networks of cost-effective contractors for renovations and repairs. Without these connections, you’re likely to spend more time and money finding reliable help.

Enforcing Lease Terms

Proactively managing tenants and enforcing lease terms reduces the risk of evictions and other issues. This requires consistent oversight and experience, which most investors simply don’t have.

The Bottom Line

If you want to lose money and risk expensive legal fees, go ahead and self-manage. Otherwise, leave it to the professionals who have the experience, systems, and resources to do it right.

Travis Biziorek · Answer

Hi Yooni,

I’ve been self-managing my 12 Detroit doors for the last 2.5 years, and while I’ve made it work, it’s been far from easy. I lived in Detroit for 5 years before moving out of state, and during that time, I built a strong network of contractors, handymen, and other boots-on-the-ground contacts. Without that network, self-management would have been nearly impossible for me.

Here are a few thoughts based on my experience:

1.	Showings: From out of state, you’ll likely need to rely on a trusted person to handle this. For me, it’s been a mix of local friends and paid contractors. Some landlords use lockboxes or smart locks to grant temporary access, but that has risks if you don’t have someone to oversee things.

2.	Move-out Inspections/Cleaning: Again, you’ll need boots on the ground for this. I hire local professionals for inspections and cleaning, but even then, I’ve run into issues where things were missed because I wasn’t physically there.

3.	Tools: I use software like Tenant Cloud for rent collection and maintenance tracking, but no tool can replace having someone who can physically check on properties. Even with Section 8 inspections (if you’re in that space), you’ll find that they don’t catch everything. I’ve had deferred maintenance pile up because I couldn’t be in the homes myself.

4.	Other Considerations: There’s a lot that can slip through the cracks when you’re managing from afar. Even with a network, I’ve had delayed repairs and tenant issues that would have been easier to resolve if I were local. Over time, I’ve realized there’s no substitute for being able to walk through the property and stay on top of maintenance proactively.

Ultimately, I’m in the process of transitioning my properties to a property manager. Self-managing from out of state has been doable, but the challenges have added up, and I’ve realized I’ve missed things that could have been avoided with closer oversight.

If you’re just starting and don’t already have a strong local network, I’d advise against self-management from out of state. Hiring a good property manager may cost more upfront, but it’s often the better long-term choice, especially if you want to avoid burnout or costly mistakes.

Happy to dive deeper into any of these points if it helps!

Drew Sygit · Answer

@Travis Biziorek we've been on the same page about that forever:)

Seems we both want people investing the RIGHT way in Detroit, so they brgin family & friends!

Drew Sygit · Answer

@Travis Biziorek you got me!

I can't edit my response or I would.

I did compliment you though:)

Travis Biziorek · Answer

Gotta work on that reading comprehension, Drew.

The second and third sentences of my post are literally:

"I lived in Detroit for 5 years before moving out of state, and during that time, I built a strong network of contractors, handymen, and other boots-on-the-ground contacts. Without that network, self-management would have been nearly impossible for me."

I'm not the type to leave out key information.

Jonathan Small · Answer

@Yooni Choi Self-managing out-of-state properties is totally doable with the right systems in place. First, find reliable local vendors—plumbers, handymen, etc.—so you’re not scrambling during emergencies. Building relationships with them early is key.

For tenant communication and rent collection, tools like Buildium or Avail can make life easier. Also, set clear expectations with tenants upfront so they know how to handle issues like maintenance requests.

How do you plan on finding all your contractors?

If you can, visit the property occasionally to check on things. If not, consider hiring a part-time property manager for boots-on-the-ground support while you handle the rest remotely.

How do you plan on keeping eyes on your property?

Good luck—you got this!

Travis Biziorek · Answer

Yes, I want people to be successful.

It's a challenging enough market with an abundance of bad actors. Can't change Detroit if we aren't being the change, right?

Travis Biziorek · Answer

I appreciate that.

Wasn't trying to call you out. I just like to keep the record straight. I'm always very transparent about my experience, living in Detroit, the pros AND the cons to investing there.

Don't want people think I'm hiding something by omitting any of it.

Drew Sygit · Answer

@Yooni Choi managing from out of state (OOS) with ZERO previous landlord experience - probably won't go well.

You WILL make a lot of mistakes that will cost you money. Hopefully, not an expensive tenant or Fair Housing lawsuit.

100% of what @Travis Biziorek states is true, but he left out a key fact - he lived in the Detroit area when he started investing here, so was able to self-manage and meet everyone he had to hire face-to-face. So, he already had people & processes in place when he moved back to California and continued to DIY manage his rentals.- It's also interesting that he doesn't want to DIY manage anymore. Most likely due to wanting to invest his time more wisely:)

If you can move in with family or friends RIGHT NOW and rent out your house and start DIY managing it BEFORE moving out of state, that would be best.

Otherwise, handymen, cleaners, agents, etc. are highly likely to take advantage of you once they find you you live OOS.