Investing in rental property remotely might seem like a risky endeavor. After all, you are looking for a piece of real estate that you are going to lease and that is going to be far away from you. So, plenty of things might seem to be out of your control. Well, if you take a closer look at it, you will see that there are plenty of reasons to invest in rental property remotely. So, without further ado, let’s take a look at what they are.
Top reasons to invest in rental property remotely
Investing in rental property 30 years ago would’ve been a fool’s errand. Back then, there were simply no easy ways to either find or maintain your property remotely. Not to mention that remote paying was quite difficult, which would make rent collection complicated, to say the least. But, ever since we’ve invented the Internet, we’ve found new ways to handle property remotely. And over the years, we’ve figured out how to make those services safe and efficient.
Finding real estate agents is easier than ever
In order to invest in real estate property, you first need to find a competent realtor to help you out. Now, there are numerous websites where you can find real estate on your own. But, you are usually much better off finding a real estate agent located in the area where you plan on renting, to help you out. With their help, you will have a much better chance of finding a suitable piece of real estate.
One of the reasons to invest in rental property remotely is because finding competent real estate agents is easier than ever. You simply need to go online and see which ones operate in the remote area. Just remember to check their credentials and make sure that they have the necessary paperwork. Also, you’d be smart to have an interview or two before you settle on one.
Online tenant checkup
Once you do find a decent piece of real estate, you will proceed to rent it. The trouble now becomes “How to ensure that your tenant is a decent one?” After all, if there is one thing that experienced landlords will tell you, it’s that having a decent, reliable tenant is paramount. Even if you have a top-notch lease with clever legal protection, you still want to avoid troublesome tenants at all costs. Well, this is again where the internet comes in. One of the reasons to invest in rental property remotely is that you can check your tenants with ease. Just like checking your realtors, you can ask about their credentials and see if they have any letters of recommendation. You should again talk to them, at least via webcam, and see if they seem like decent folk.
Being an out-of-state landlord
Once you find a decent tenant renting your property, you should start seeing a return on your investment. But the trouble is that being a landlord is not all about collecting rent money. Every landlord has certain obligations towards their tenants and their property. And, if you are to fulfill those obligations, you need to be resourceful and attentive. Normally, this would require you to live near your investment in order to have a hands-on approach. Luckily, there are services that can help you deal with your landlord obligations remotely. You can outsource certain obligations, like finding repairmen and settling neighbor disputes by hiring property managers. These folks are one of the reasons why investing in real estate property is viable.
Maintaining remote property
Everyday issues like leaky pipes or broken electric sockets can be dealt with by any repairman. But what are you to do if your remote property requires some major renovation? Do you need to travel there and oversee the whole ordeal? Well, not quite. While it is advisable to check on your property in person from time to time, there is no need to do so constantly. If you wish toupdate your rental property, you can simply find reliable contractors online and have them deal with it. You should at least meet them in personat least twice:once to go over your property and the issues in detail, and again once the job is done. But apart from that, you can rest easily at your home. Just do yourself a favor and prioritize the quality of labor and reliability over price.
Saving for retirement
The beauty of having to invest in rental property is that the longer you have it, the more it pays off. While you are living in your current home, it will be a steady source of income. But don’t forget that it can also be a safe place for your retirement. This is one of the reasons why a lot of people choose to invest in rental property in areas more catered towards the elderly. Renting a summer home or a beach home is not only lucrative, but it is also a great way to ensure that you will have a fun retirement. So, consider this aspect before you decide where to invest.
Ease of financial management
Property values constantly change. Some experience significant fluctuations due to an overall change in the neighborhood. Others experience smaller fluctuations and have a more stable value. But if at any time you wish to sell your rental property, doing so is easier then ever. One of the reasons to invest in rental property remotely is that you are not stuck with it. If you go for mortgage payments, there will be numerous ways that you finance them. And, if you decide to sell, you will be able to tackle a large aspect of that remotely.
Author bio: Matt Harris has worked as a professional real estate agent and relocation adviser for over 30 years. He now focuses or raising his daughters and on writing helpful articles about real estate and relocation for companies like Movers 101 NYC.