Whether you have a vacation property you rarely use or you’re moving and you no longer need your current property, you can add some extra income by renting these pieces of real estate, even if you won’t be living in the same area. Discover how you can successfully manage real estate remotely with the following tips.
Make a List of Repair People
One of the most important steps you can take when you’re remotely managing a real estate rental is creating a list of repair people you can call when something goes wrong. Think of every potential repair or service you might need, including plumbing, electrical, lawn care, snow removal, and roof repair, and then research the best people or companies in your market to contact. Also consider getting the name of a reliable handyman or woman who can make minor repairs to the property as necessary. After all, it’s better to have this information ready before you actually need it.
You can also consider working with a local maintenance company. Some of the systems these companies use will let you see how many tickets get opened for a certain item, which will help you decide when it’s better to replace a faulty item instead of fixing it again.
Consider a Home Warranty Plan
Another option to consider when you’re managing remote real estate rentals is purchasing a home warranty plan. When you have one of these, you no longer have to worry about calling repair people to come out and fix whatever is broken. Instead, you call the home warranty company, and it takes care of everything for you. While home warranty plans are an easy way to handle most repairs in your rental, there are some drawbacks to consider.
First, you have to pay for the plan whether you use it or not. Policies typically cost between $300 and $600 a year, and you’ll be charged a fee for every service call. Second, home warranty plans don’t cover every part of the home. While most plans will typically cover plumbing systems, electrical systems, heating and cooling systems, and kitchen appliances, not all plans will cover faucet repairs, washers and dryers, refrigerators, and outdoor items, like sprinklers or pools.
Work With a Leasing Agent
When you’re getting ready to rent your property, you might need to work with a leasing agent to get your first tenant. However, once you have tenants in place, you can use them to help you find new tenants. When your current tenants tell you they’re leaving, offer them a discount on their last month’s rent in exchange for showing the property to new prospective tenants. The discount you offer will still be less than what a leasing agent charges, and being able to show the property right away minimizes the chances of any gaps during the rental period.
Use E-Signature Software
Once you have tenants lined up, you don’t have to come back to sign rental agreements or contracts with them when you use e-signature software. With this convenient technology, your tenants can use a web browser or mobile device to read the documents. The areas where they need to sign are clearly highlighted, so they don’t miss a spot. Then they simply fill in their secure digital signature, and you get peace of mind knowing that the entire process is easy, flexible, and legal.
Collect Rent Electronically
While collecting rent is one of the most critical parts of renting property, it’s also one of the more complicated parts if you’re doing it remotely. If you don’t live in the area, your tenants can’t drop off the check at your house. Having them mail the check can also cause delays. However, you have numerous options for collecting rent electronically that make the process simple for you and your tenants. There are several websites and apps that will collect rent from for your tenants online and deposit the money straight into your bank account.
With these tips, you can successfully manage real estate rentals even when you’re not actively present and in the same area.
Posted in: Real Estate
Tagged with: Real Estate
