How Close Should You Live to Your Rental Properties?
Written by: Veronique Hart, Property Management Specialist - Published: Oct 06, 2022
What is the ideal proximity between an investor and their rental properties? Depending on the location, managing your rental properties can be as involved as you prefer. In some cases, property owners and landlords are heavily involved, regularly visiting their properties, interacting with tenants, and even assisting with property upkeep. Others rely almost entirely on the oversight of property managers to run day-to-day operations. Under the right circumstances, both approaches can result in successful rental property investment.
How can you decide what geographic distance is right for you and your rental properties? In other words: how far is too far? There are many benefits to both keeping your investments close and branching out into new markets. The following guide can help you decide how close you should live to your rental properties
Benefits of investing locally
Most investors’ first rental property is within half an hour of their home. In fact, many first-time property owners choose to only invest in properties in their nearby real estate market. The peace of mind offered by local investments is especially attractive to property owners with no prior experience renting to tenants, collecting rent, or addressing maintenance requests.
Familiarity with the local rental housing market
As a local, you have invaluable insight as to which rental property investments are most likely to make a return. Before investors from other markets are able to learn of recent trends, you can easily identify which neighborhoods are experiencing high rental demand and the needs of renters in your area. This local perspective is invaluable and can mean you have the edge over out-of-state real estate investors.
Ability to screen and interact with tenants yourself
For some property owners, having regular facetime with tenants is crucial. Before renting out your valuable investments, you can conduct interviews, discuss the stipulations in the lease agreement, and develop a relationship with prospective tenants. Having a friendly relationship with your tenants is more likely to result in reliable, long-term renters and raise the overall value of your property. Additionally, tenants are often attracted to properties owned and managed by individuals or small businesses rather than large corporations.
Regular in-person check-ins
If your rental property investments are nearby, it is easy to stop by your properties to ensure they are functioning correctly. For example, if you have ordered HVAC maintenance, you can personally check in on the progress of repairs. The ability to quickly check in on the condition of their apartment complexes, duplexes, or rental homes is important to many property owners.
Investing in long-distance properties
There are many obvious benefits to local investments. In fact, some real estate investors never branch out of their local markets. When does it make sense, then, to invest in rental properties outside of your geographic location? Many real estate investors can grow their rental property business by strategically widening the geographic range of their investments. By keeping in mind the following information, you can decide if investing in long-distance properties is a good option.
Turnkey properties
If you are not limited to your local real estate market, you can jump on excellent investment opportunities no matter where they occur. Ready-to-rent, in-demand turnkey properties are listed every day in real estate markets across the country. You can benefit from growth opportunities beyond those offered by your local market if you are ready and willing to invest in these turnkey properties when they appear on the market. You can start generating a passive income immediately with multiple turnkey properties in your portfolio. In some cases, this will result in you seeing profits sooner than if you were to invest in local fixer-upper properties.
Stress-free property management
If experienced property managers manage your rental properties, you won’t need to worry about a lack of firsthand access to your properties. Hiring a property management firm will ensure you receive regular communication regarding the state of your property, that vacancies are promptly filled, and maintenance requests are promptly addressed. Property management firms often supply a ready workforce of experienced contractors or on-site maintenance staff, saving you the hassle of trying to find local workers long-distance.
Keep growth manageable
Long-distance properties offer investors many unique opportunities. However, it is important to keep careful stock of your business to ensure you are not overextending yourself. The last thing you want is to throw away potentially profitable rental investments because you are not able to upkeep the property. In most cases, rental properties within half an hour to an hour away will not strain investors’ resources. However, if a great rental property is listed over an hour out, it is important to be realistic about your ability to effectively manage that property before investing your money.
Make long- or short-distance work for you
Successful local and long-distance rental property investments have one thing in common: excellent property management. However far you live from your rental properties, it is important to make sure that your investments are properly maintained. With the right property manager, you can rest assured that your long or short-distance rental properties are protected. With the help of PropertyManagement.com, you can find an excellent property manager for all your rental properties– no matter how far.