Can you successfully self-manage a long term rental as an out-of-state investor?

Question

Hey all,

I’m looking at investing in a duplex in Indianapolis. I currently self manage an in-state property, but was curious what it “takes” to successfully manage an out-of-state one. When I look at using a company, the fees just don’t seem to be worth what they offer. However, I know I need so “boots-on-the-ground.” Any advice on how you’ve successfully done so would be appreciated.

Janice Carter · Answer

First, verify whether out-of-state self-management is even allowed. For example, in Georgia it is not. Out-of-state landlords must hire a licensed real estate broker or property manager
(reference HB 399). If Indianapolis does allow out of state self-management, it would be advisable to build a local support team before you close on the property.

You will need:

• A reliable handyman/repair crew who can handle emergencies, send photos/videos and keep the unit rent-ready.
• Local leasing agent or broker for tenant placement. With tenant fraud on the rise, paying a professional to screen and place the tenant is worth it. You can self-manage afterward.
• Clear systems for rent collection, communication and annual walkthroughs

With the right local support, out-of-state self-management can run just as smoothly as in-state.

Jimmy Lieu · Answer

Hey Taylor, totally get where you’re coming from — managing out of state can definitely feel intimidating at first, especially when PM fees seem high for what you’re getting. The biggest thing it really takes is having a solid team on the ground that you can actually trust. When I first started investing, I was living in Portland and buying in Columbus, and I learned pretty quickly that you don’t need to be there in person if you have a reliable handyman, inspector, and someone who can put eyes on the property for you when needed. A lot of investors still self-manage long distance by building that small “boots-on-the-ground” crew and using tech for everything else. Also, Columbus has been amazing for long-distance investors because the macroeconomics are on fire here with population growth, job growth, and massive companies like Intel, Amazon, Google, Microsoft, Honda, and Anduril building and expanding here. You can still find rentals in the $120–180k range that hit the 1% rule and stay cash-flow positive, which makes long-distance management even more worth it. If you buy in a market with strong fundamentals and affordable price points like Columbus, long-distance management becomes a lot smoother than people think. Happy to connect and answer any questions you have!

Henry Lazerow · Answer

As long as its in a good area its very easy to self manage out of state, now if its in a working class area forget it. Class A the tenants auto pay and are easy to work with your handyman for repairs with these type of tenants you should never even have late payments and very little wear between turnovers. Just hire a leasing agent and handyman to do touch ups when someone moves. I run a 4 long distance and have many clients doing the same. Property managers really are a rip off unless your in a headache type tenant area or have 40+ units.

Drew Sygit · Answer

@Taylor Hassel can be done!

Recommend setting up Tenant Placement Only services with an Indy PMC.

We offer that in Mewtro Detroit, but will NOT supply maintenance without a full management contract - too much liability exposure & headaches.

So, you'll also need to source your own handyman and contractors. - Very easy to get screwed via overcharging and shoddy work:(

Travis Timmons · Answer

The biggest factor for success that I have seen in my own out of state self management and from conversations with other investors is tenant quality. If you have a tenant with a 700+ credit score and a property located where there is real rental demand (people with options want to live there), you have an exponentially better chance of success.

Don't buy a sub-$150k house in Indy and expect to self manage long distance without issue. Either way, tenant placement is going to be your biggest problem to solve. Prospective renters are going to want to see the place before signing a lease, and you are going to have to find someone to unlock the door and let them in.

Jeremy Tallman · Answer

You can certainly manage from out of state, but not as well as a good PM. PMs SHOULD lease your home faster and for more money. They SHOULD provide better maintenance efficiencies to improve resident satisfaction and reduce turnover.

The key is to find the right PM.

Let me know if we can help.

Ryan Spath · Answer

@Taylor Hassel

I totally get where you’re coming from. Once you step into out-of-state investing, the biggest shift isn’t the property — it’s the systems and people you put in place.

I self-manage a few long-distance properties, and here’s what it really takes to make it work without losing your sanity:

1. Build your “boots-on-the-ground” team first.
Before you even close, make sure you have at least:

• A reliable handyman who answers the phone
• A plumber and HVAC tech (emergencies don’t wait)
• A cleaner
• A lawn/snow service
• A leasing agent or someone local who can show unitsI looked into “tenant turner” and never pulled the trigger, it is a service that has a digital lockbox on the door, and gives access to unit for qualified people.
• I looked into “tenant turner” and never pulled the trigger, it is a service that has a digital lockbox on the door, and gives access to unit for qualified people.

• I looked into “tenant turner” and never pulled the trigger, it is a service that has a digital lockbox on the door, and gives access to unit for qualified people.

2. Treat it like a business, not a side task.
Self-managing from afar works when you have:

• An organized rent collection system (Baselane, Avail, RentRedi, etc.)We currently use RentRedi, and used to use schedulemyrent.com
• We currently use RentRedi, and used to use schedulemyrent.com
• A screening process you follow every time
• A communication system (templates, auto-reminders, clear boundaries)

• We currently use RentRedi, and used to use schedulemyrent.com

The moment you “wing it,” out-of-state becomes a headache.

3. Expect to pay something
for convenience.
Whether it’s a leasing agent fee, a handyman who charges a premium, or a one-off showing service — you will pay a little more than in-state. That’s okay. You’re buying back your time.

The key is paying for tasks, not full management if the PM fees feel too high.

4. Still do annual or semi-annual check-ins yourself.
Even with systems, flying out once or twice a year keeps your eyes on the property, maintains relationships with your local team, and reminds you this is a real
asset, not a spreadsheet.

• Make it an annual trip, videos and others input helps, but there is nothing like putting your own eyes on your property.

It isn't impossible to do with the right systems, best of Luck!

Crystal Smith · Answer

Here is how we've done it in the past.

1. We've established a partnership locally to invest with us.  This means spending a little time in the market & establishing relationships up front.  We've only done this when the objective was multiple properties, not just a one off.  While we may be out of state, we would have local investors with skin in the game with us.

2. Vet, vet, vet, local property management. Yes it eats in to bottom line, but our goals are to be passive investors and not create another job by self managing.

Good luck

Arman Ahmed · Answer

@Taylor Hassel

You can successfully self-manage out of state, but the key is having reliable boots-on-the-ground who can respond quickly when something comes up. For most investors I work with in the Midwest, the system that works best is lining up a solid handyman, cleaner, and leasing agent you can trust, then using software like RentRedi, Buildium, or AppFolio to handle tenant screening, rent collection, and maintenance tickets.

Steve K. · Answer

Can it be done? Yes absolutely. However I might put this in the same category as using nuclear transmutation to turn lead into gold. It can definitely be done, but whether it will be practical or profitable is another story. Most often not. The folks I know who do it successfully all fit into these categories:

Class A/B properties in great locations with high tenant demand and quality tenant base.

Owner used to live in the area, or in the property, or has close relatives or friends nearby/ personal connections and familiarity to the area.

Owner is well capitalized/ can absorb negative cashflow indefinitely.

Without the above, the risk increases substantially.

I used to invest up to an hour away, now any purchases I make are within 20 minutes of my home.

Can you successfully self-manage a long term rental as an out-of-state investor?

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