How often should an out of state rental be physically visited?

Question

Hi everybody,

This is my first post, glad y'all are here talking about this stuff!

My question is about owning rental properties that are more than 500 miles away. Some RE investors that I have talked to say that an owner should physically inspect a property every 6 months, others say that if you trust your property manager you essentially never have to visit.

I have a property manager that is honest and professional. I'm looking for advice on how often to visit the property physically.

Thanks!!

Henry J. · Answer

Ty Mathews Welcome to BP! I invest out of state and I try to visit my market once a year to see what's happening since last time I was there. I think everyone's visit frequency can be different, depending on how you answer these questions - How well do you know your PM and how much you trust them? How often does your PM inspect the property on your behalf? How often do you communicate with your PM? How in touch are you with the market and submarket? I check in with my PM about once a month just to see how things are going. I ask my PM to inspect about every year and I will schedule a visit every year. This way the property is 'inspected' about every 6 months or so. The visit is an expense that you can avoid, but I think it's important that your PM knows you care enough to visit, and meet them in person every so often, to stay on top of things. Good luck investing! Henry

Account Closed · Answer

Ive been out twice in 5 years. No plans to go anytime soon. If I want to sell, I may go to figure out what needs doing before sale. Otherwise PM handles everything.

Ty Mathews · Answer

Thanks everybody, I so appreciate the different points of view!!! This forum is AWESOME!! We all get stronger sharing with each other! Respect, Ty

Levi T. · Answer

I have some SFH properties me or my managers have not seen in 7+ years. We have no plans to look in on them, unless the proverbial tea leaves start showing signs of issues with the tenants. Tenants will report problems with the property if you fix the problems. If you refuse, or bill the tenant, they will stop reporting it.Tenants not paying rent goes hand in hand with not taking care of the property.. you'll know when you got one, as the property will keep popping up on your radar each month. That's when you start checking in on it.As others pointed out, this is what you paid a PM to think, manager, and deal with. You should only be collecting a check and living worry free, otherwise you should fire your PM.

Andrew Johnson · Answer

Ty Mathews I'm an "every 6 months" guy myself. I have a PM, I trust the PM, but at the end of the day it's my property and my debt that goes along with it! What a lot of people don't think about is that it doesn't hurt to check in on the neighborhood as well. See how it's progressing, see if it looks like you should look to buy more, possibly sell, etc. I don't go inside the units and do any "inspections" myself. I do like to take a look at the exterior, how the grounds look, if there are cars with a flat tire, etc. All of that stuff can be accomplished (in theory) with some photos but I just feel the need to see it for myself. And it gives me a chance to pal around with the PM for a couple of hours face-to-face. Make sure their business still has a storefront, that they still have employees, etc. In short, there are many reasons for a periodic visit (my opinion anyway). That said, I have enough units/income/etc. to justify it. The economics are different for me that someone who paid $35K for a property in Akron that cash-flows $100/month. One trip (flight, car, hotel, food) can kill solid years worth of profit. And if someone had 100 or 200 units in an area I bet they might check on it 4 times a year instead of 2.

Henry J. · Answer

Ty Mathews I forgot to mention - if you have friends / families, you can ask them to do a drive by to check the houses from outside too. I think there maybe online services you can hire to take exterior videos. One more thing - if your property is at a place you enjoy visiting, schedule your trip so you can combine business and personal trip together and do a business expense write off... now - speak to your CPA to understand the details. Henry

Ty Mathews · Answer

Would the video walk-through be interior and exterior? Meaning, notify the tenants and such?Thanks, James!

Ty Mathews · Answer

Thanks, Henry! I so appreciate the help!! I am sort of new at this, so I have been letting my PM advise me. Been visiting the property every 6 months, and would like to have the flexibility to back off and visit once a year without being a "deadbeat landlord"......... Those questions are great (and the suggestions they imply), just what I was looking for, Thanks again!!

James Conaway · Answer

Have your PM send you a video walk through of the unit at some interval you are comfortable with.