long distance managing

[Miloslav V.]

hello folks,

Newby here, been browsing this site for some time now and i have to say my initial impression is that there are a lot of helpful people here who are more than happy to dish out really solid advise.

I wanted to ask those with experience in managing properties long distance (greater than 2 hr drive away from their home / business), how difficult is it to effectively manage a property without hiring a property manager.

appreciate all advise

[Carson E.]

So the idea of long distance managing is also something I have been grappling with as well.  We currently live in Wyoming and have had to look to other markets to find the type of deals that make sense.  One of these markets has been Rapid City, SD.  I have lived there for 5+ years prior to moving to Wyoming, and know the area well.  

I purchased a 1964 SFH in Rapid City through a foreclosure and actually moved there short term (I was in between jobs) to renovate the property. It's a 3/2 and I essentially went over anything and everything that could break - new light fixtures, new plumbing fixtures, p-traps, updated electrical to include GFCIs, new sewer line, cleaning of furnaces/hotwater tanks, new key code door knob, fixed the gutters, paint, flooring, switches, etc. My idea was to mitigate the likelihood of potential problems before they begin.

After renovation, we advertised for a week, with things culminating in 'one day' of showings for a weekend that we went back for.  During the week prior to showing, we worked to pre-screen applicants on the phone, answer questions, and arrange a steady flow of showings on the one day.

We placed a young family in the property and after the first month, things have been going well... knock on wood.  I also have a network of contacts that include a plumber, electrician, and handyman that I am able to call for when problems come up.  We have set up direct deposit for rents and this has worked for the first month nicely.  Additionally, we still have friends in Rapid City that we visit several times a year and thus have the ability to be in the Black Hills typically every other month or so.  

With this being our second rental property, I have plenty of negative input on how this won't work and is a recipe for disaster.  My reply to many of the potential situations people pose is that we have a plan in place to cover them - most of the ones I can think of.  Additionally, even if I lived in Rapid City, and there was a major problem, I would likely end up calling a professional anyway.  The little things that need to be addressed that I would normally do if I lived there, now cost $35/hr for a handyman to fix - which is not really an issue as of now.  I can also be up there to address non-important issues on a weekend if they can wait - it's a 4.5 hour drive.

My question is, what am I missing?  What can/will happen that I need to account for?  My wife and I are at the point where we are ready to acquire our next property and we have some leads in Rapid City that again make sense.  Is anybody else in this situation and what have you found to be helpful?  I'm strongly opposed to a management company (as of now) because we have made the investments for the property to be as care-free as possible.  Finding the right management company would also be a learning curve in itself.  Any input would be helpful!