Are you a landlord about to move to another city or state? Will you be leaving your rentals behind? Managing remote properties is not impossible, but there are some things to consider.
What Can You Do with Your Rental?
There are two options available to you:
1. Hold onto Those Properties
Whether you are relocating, or you inherited a rental in another state, you can manage your rentals from afar. Some difficulties will present that need to be addressed. For example, regular maintenance and repairs: your tenants can notify you of issues, but you cannot be hands-on anymore.
Another issue is collecting payments from tenants who are late and carrying out evictions. Also screening new tenants, managing lease agreements, and protesting property taxes – these are all responsibilities better handled in person, or by someone you trust to act in your best interests.
Remote landlords often hire a property manager to manage the rentals in their place. They handle property showings and inspections, maintenance issues and repairs. They also keep you in the loop and carry out your decisions.
If you hire a manager, you’ll have to pay them out of your rental profits.
2. Sell Your Rental Properties
Landlords who move often sell their rentals because the long-distance work is too much stress. They then use the sale proceeds to buy new rentals wherever it is they are moving to. You can sell to your tenant, another landlord, or a real estate investor.
Things to Consider if Selling
If you’re thinking about selling to your tenant or another landlord, there are some things to consider. First, when are you moving? Are you moving in a few months, or a few days?
A traditional sale takes time. Traditional buyers need to get mortgage approval, and lenders require warranties and house inspections. The sale is further delayed if the buyer or lender wants you to make repairs.
Sometimes a landlord buyer will not close till bad tenants are evicted, and evictions take time and money. Even if the lease is up, and you get your tenants out, you still have to clean and repair the property after them.
Do you have the time to jump through these hoops? It’ll be more difficult to manage a sale long distance if you do not settle it before you move.
Instead, Sell to a Real Estate Investor
Most investors offer cash for rental properties “as-is,” no repairs or renovations necessary. They will take on the rental with its tenants still living there, whether they are non-paying or filed for bankruptcy.
Investors do not require warranties or inspections, and will close on a date of your choosing, be it in 30 days or less. You can enjoy a quick closing with less paperwork and hassle, and use the profit to buy a new rental in your new market.