Perhaps you inherited a property in another state, or your about to move for profession or personal reasons, and you’re trying to decide what to do with your house. Whatever the case may be, you might be contemplating becoming a remote landlord.
There are a lot of pros and cons of becoming a remote landlord. Consider these points before making your final decision.
Pro: Rental Income
This is simply a pro of being a landlord in general. No one would do it if it weren’t for the income that is possible. Ideally, your tenants will cover any mortgage payment you might have on the property as well as defraying the cost of any maintenance that might arise while they are in the property.
Con: Emergency Maintenance Hassles
One question you have to ask yourself before becoming a remote landlord is not only will you answer the phone in the middle of the night when the air conditioner is broken or a tenant got locked out, but what are you going to do about these issues from where you are located?
Depending on your familiarity with the area your property is located in, and your relationship with maintenance workers in the area, this may become more hassle than it’s worth. You may need to consider finding a quality property management company to handle these types of issues for you and your tenants, but this will be an additional monthly cost.
Pro: Delegate the Daily and Enjoy the Results
In an ideal situation, you would be able to delegate your property management to a company that would handle all the daily ins-and-outs of being a landlord. And if you have the right support system, you will be able to enjoy all the positive results of being a landlord without dealing with too many of small issues, like finding a plumber to fix a minor issue, or advertising the property when a tenant is about to move out.
Con: Distance Makes Checking Up Difficult
Unfortunately, being a remote landlord makes it difficult to check up on your property manager and the property itself. And often just because your tenant seemed to check out, doesn’t mean that your property is being well cared for. Many landlords can recount the horror stories of inspecting a property they thought was being cared for after a tenant moved out, only to find the home completely trashed. And with so much distance between you and the property, it can be difficult to identify bad tenants who might be destroying your property.
Pro: The Property is Inhabited
If you aren’t ready to sell yet, it is best to have the property inhabited during your absence. With the right tenants, this will actually reduce maintenance issues that result from disuse of a property, and can help offset the cost of your mortgage and maintenance. Ultimately, it is better to be a remote landlord than to be a remote vacant home owner which puts the property at risk for vandalism, squatters, fire, and other issues.
Con: Drain On Your Time
Just because you aren’t near the property doesn’t mean you won’t spend hours dealing with problems remotely. And when you do have to visit in person, those visits are a much larger drain on your time because you have to factor in the amount of time it takes you to travel to the property. Being a landlord can be a full-time job. Before you get too deep, evaluate how much time you have to devote to being a landlord and determine if it is a realistic time investment given the other strains on your time such as work and family.
Being a remote landlord is not an ideal situation for everyone, but it may feel like you have no other choice if you can’t sell a property fast enough. Local Cash Buyers is your solution. We can provide you with a cash offer in 24 hours and close on the property in as little as 7 to 10 days. Contact us today by filling out our online form or calling 469-701-1666.