Remote self-management of LTRs...a pipe dream, or a possibility?

Question

What are folks' thoughts / experiences about remotely managing a B-class (or higher) single fam or small multifam LTR in a mid-sized (or larger) city?

(I specifically say B class or higher in a mid-sized or larger city, because lower class properties, and properties in more rural areas would be exponentially more difficult to manage remotely...I may not be the brightest bulb in the chandelier, but I'm smart enough to avoid that trap...).

I've self-managed my local LTRs for years, and the task that requires my physical presence more than any is showing property to prospective tenants (I can't easily hire this out to anyone other than a PM, so I'm stuck doing it myself)... but, I have heard of owners using smart locks, security cameras, and Zoom to remotely supervise/monitor prospective tenants who walk the property without anyone else physically present...Does anyone have experience/opinions about managing viewings remotely?

As for repairs / maintenance tasks, I can (and often do) coordinate repairs / maintenance tasks from my phone, and my repair / maintenance people rarely need me to be physically present (of course, it helps that I have a decent team of repair/maintenance people in my area)...but in theory, if I can do that from down the street, I should be able to do it from across the country...

...very interested to hear folks' thoughts on this...

Leo R. · Answer

Already on it, @Kenny Smith --been listening to the audiobook!

Nathan Gesner · Answer

I never recommend self-management for a beginner. For someone with experience, it really depends on the level of experience and what your time is worth.

There are many problems to consider as a long-distance Landlord:

- showing empty houses

- staying current on rental trends

- inspections (drive-by and interior)

- you'll never be able to visit and trouble-shoot a maintenance request before sending a vendor

- knowing local laws

I could go on. In the majority of cases, hiring a good PM will bring as good a return or better because they know the market better, can demand higher prices, can reduce losses through active monitoring and swift action, reduced turnover time thanks to their network of vendors, etc. Most owners are "saving" the management fee but spending more than that in other areas. Stepping over dimes to pick up nickels because they look bigger.

Where there's a will, there's a way. I use lockboxes and show empty rentals all the time without any problems. I use ShowMojo which has an identify verification system, codes can be changed remotely, and other great features. However, someone still has to put it on the house. Someone still checks the house at the end of the day to ensure lights are out and it is secure. And what happens when the lockbox fails or someone accidentally walks off with the key?

Drew Sygit · Answer

@Leo Ray Most investors can remote manage a Class A property/tenant.

Those with a decent amount of experience can handle Class B property/tenant.

To handle Class C property/tenant and below remotely, an investor would need to be an expert AND have trustworthy boots on the ground. Otherwise, their investment will collapse.

Colleen F. · Answer

@Leo Ray I have to say my bigger headache recently is the undiagnosable problem, in this case with the furnace. To complicate the matter the normal furnace company is insisting you must buy oil from them so I found a new guy proactively since buying from them was a 2k upcharge. I had him clean the furnace. Then when the furnace went out there were 6 visits in 10 days for heat issues. Now is he just no good or was it a difficult issue? They replaced the breaker, the control panel, the circulator pump, a zone valve, bled the furnace and water heater. Was there a lightening strike as the electrician suggested that burned out the components, I don't know. I thought I would lose my mind, not sure what I could do differently but it is a concern. Now I am looking to see if I can get an alert from the furnace/water heater before it goes critical so at least I know before everyone is out of hot water and heat.

Joshua R. · Answer

I haven't tried that yet, I don't trust strangers on their own much. I have mainly done private rental listings though, it would probably be fine with an MLS rental listing with agent chaperones, which is what I'll try next time around.

In my case, it was not being able to tell if the tenant was actually leaving on their own, like they said they were, or if they needed to be encouraged to get out (via getting the county officially involved). And afterwards, assessing the repairs needed would have gone better in person than they did remotely. The property managers that I temporarily employed had different opinions of what acceptable property condition was, I probably could have gotten higher rents and the new tenants had to deal with some annoying things for a few years that I would have happily fixed before they moved in if I'd known about them.

Leo R. · Answer

@Joshua Ryan have you ever tried to let prospective tenants view a property on their own? (for instance by using a remote lock and/or security cameras and/or zoom)? ...if so, how did it go, and is it something you'd recommend trying?

Also, what is it specifically, that makes doing long-distance evictions harder than normal?

Joshua R. · Answer

I've done the self manage from a distance dance for around 15 years now on two properties, your gut is already pointing out one of the main hard parts, "showing property to prospective tenants". I still haven't found a great way to handle that, favors from friends + video calls or traveling get the job done, but they're clearly not as good and/or are more painful and/or expensive.

Evictions are never fun, but they are extra hard from a distance. I had to do one and after losing an extra month's rent than if I had been there eventually gave up and hired a property manager to handle it. A related problem is that properties can get beat up more without you realizing it unless you or someone you trust is able to visit the property from time to time.

Maintenance really isn't much harder at a distance, especially if you've already got maintenance people that you trust.

Kenny Smith · Answer

@Leo Ray

I don't have experience long distance property management..but I'd recommend reading David Greene's Long Distance Real Estate Investing book! I'm sure there are plenty of nuggets in that book to help.

Remote self-management of LTRs...a pipe dream, or a possibility?

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