Out of state rentals & professional property management

[David Puente]

BP community, 

BLUF: the current lease of our out of state rental is about to expire and the property is now listed below comparable market value. Should I consider switching property managers for the sake of increasing cash flow with roughly 3 weeks until the property becomes vacant?

Additional context: this was a property purchased under VA loan in 2021. We received military orders for reassignment out of state and chose to keep this property as our first and only long term rental due to its fantastically low interest rate. However, in our haste to ensure the property was occupied ASAP and we wouldn't be completely on the hook for two mortgages, we listed the property at below average rates in 2022. The property (4bd/2ba/2500 sq ft) was at the time listed at $1800 (average rates at the time were $1950). Fast forward to now, comparable rates are $2100 and a home on our block (4bd/2ba/2200 sq ft) has listed at $2300 with decent interaction on Zillow. I had expressed interest to raise the rate to $2000 to our property management company (the largest firm in our area) if the manager believed we could get this amount. My understanding was we'd try and scale it back if it failed to generate any activity. I just found my property listed on Zillow at $1800 despite this conversation. I'm worried to create any conflict with the management company due to our short time remaining until vacancy, the large amount of activity we've already generated at the current list price, and the fact that the managers done an otherwise fantastic job for us over the last year.

Strictly speaking financials, because we purchased under VA and have little equity in the deal, current cash flow is $180/mo which 100% goes to making additional principal payments. Our well-being isn't tied to the cash flow of this property, but increasing cash flow is in our best interest as it brings us closer to utilizing other investment strategies learned here to reach financial freedom.

Should I switch property managers and risk the unknowns or trust the process?

thanks in advance, 

Dave