5 Tips for Being a Long-Distance Landlord

In the military, frequent moves are a reality. Sometimes this means you have to leave your dream home behind, moving many states (or even several countries) away, for a short (or extended) period. If you aren’t ready to sell but need to move, renting out your property to others can be a great option.

Here’s what you need to do if you are going to be a long-distance landlord:

1. Get Eyes on the Ground

If you’ve been thinking about renting your home and have consulted with current landlords, you’ve likely heard horror stories of properties being vandalized, burglarized, and otherwise destroyed by tenants. If you aren’t within a day’s drive of your property (and even sometimes if you are), you’re going to need eyes on the ground who can help manage and maintain your property. If something happens, like you end up with tenants who aren’t treating the property well or you can’t be there quickly, your property (and therefore your investment) will suffer.

Consider getting help from a trusted friend or relative who is staying in the area. You may also choose to partner with a property management firm that will perform regular inspections alongside other services. Make sure your local contact is willing and able to drive by the property on occasion and inspect the interior from time to time as well. If you choose to hire a property management firm, choose one with a solid reputation and strong real estate portfolio, because scams are abundant and you won’t be around to ensure the property manager is doing the job well.

2. Have a Plan for Maintenance

Your property is going to need maintenance, even if you have the area’s best tenants. It’s not the tenant’s job or responsibility to keep the property well maintained—it’s yours. You will need a plan when maintenance needs arise and you can’t be the one to fix the problem. Consider partnering with a local handyman who can do the repairs and send the bill to you. You will need to do this step before you move away because you’ll want to interview your maintenance professional and ensure you can trust him or her.

3. Proactively Communicate With Tenants

Satisfied tenants are those tenants who know their landlord is going to be responsive when they have a problem. While you may not be able to drop what you’re doing and drive by when a problem arises, you can keep your tenants satisfied by communicating with them proactively. For example, if you’re regularly checking in with your tenants, either using phone calls, text, or email, you can avoid the discontent that occurs when your tenant ignores a repair problem until it becomes unlivable, at which point they are angry that you have not fixed the issue.

4. Set Up Auto-Payments

Many times, tenants who rent from an individual will send a check on the first of the month. However, that’s going to get tricky if they have to mail the check. Who’s to say what happened if the check got lost in the mail? To avoid these problems, set up an automatic payment through a bank draft or online payment portal. Wire transfer is another option. If your tenant is signing a fixed-term lease, like a six-month lease, consider collecting post-dated checks to cash every month, as another option. The key is to make it easy to be paid in a way that is not subject to the whims of the postal system.

5. Document, Document, Document

Make sure everything about your rental home, lease, and any other agreements you make is well documented. This includes a signed statement from you and your tenants about the condition of the property when they moved in. If you are going to perform regular inspections or have your trusted local contact person do this, consider having a rental inspection report signed at these times.

Managing rental property from afar is not impossible. It can be done well as long as you have the right protections in place to ensure your tenants remain happy and your properties stay safe.