Self Managing OOS Rental

[Michael Cox]

Hello All, 

We are coming close to closing on our first long term rental and are faced with the choice of utilizing a property manger vs managing the property ourself. Currently, the property is being leased and we plan to keep the tenants for the time being. Our concern is if they inevitably decide to leave, how do we go about finding a new tenant while being on the other side of the country. We have contact info for a handy man that is known and trusted by our realtor who also owns rental properties in the area, so that aspect is less of a concern. Just curious how we might go about finding a new tenant without being local? Any info would be greatly appreciated! 
Thanks! 

[Nathan Gesner]

Quote from @Michael Cox:

Hello All, 

We are coming close to closing on our first long term rental and are faced with the choice of utilizing a property manger vs managing the property ourself. Currently, the property is being leased and we plan to keep the tenants for the time being. Our concern is if they inevitably decide to leave, how do we go about finding a new tenant while being on the other side of the country. We have contact info for a handy man that is known and trusted by our realtor who also owns rental properties in the area, so that aspect is less of a concern. Just curious how we might go about finding a new tenant without being local? Any info would be greatly appreciated! 
Thanks! 

Who monitors it while vacant? Who will mow the lawn? How will you handle showings? How do you intend to handle inspections while occupied? Who will monitor the home to ensure they don't move in five friends or relatives, start a dog breeding business, break the window, park a project car on the back lawn, convert the home to a vacation rental, etc? How will you stay apprised of market rates, vacancy rates, new state regulations, etc?

Before you make the decision to manage from another state, I recommend you read some books and get a basic understanding of what it takes to manage a property (regardless of location). Then decide if you have the personality, time, and tools to handle it from a distance.

You'll hear a lot of people on these forums say that they self manage and don't have any problems. But did a little deeper and you'll find many of them have very little experience over a very short period of time. If they've only owned the property for three years and had one turnover, they haven't really tested the system. You need to talk to long-term investors that have dealt with a lot of turnover. Over half of my clients started out managing on their own, some for decades, and they all thought it was pretty easy . . . until it wasn't. Most of them make more money after hiring me, and they don't have to deal with the headaches.

Your mileage may vary. Educate yourself and make a sound decision.