Tue, 7 October 2014
It is possible to own rental properties in a different city than you live in, and not have a property manager. Tim Hennessey is proof of that. Tim owns 7 rental properties. He owns 4 in Florida, and 3 in Illinois (where he lives). He manages the Florida properties from Illinois and he does it all without a property manager.
They Keys To Managing A Property From Out Of Town:
1.) Make it easy for tenants to make their rental payments. (Tim gives them addressed, and stamped envelopes with deposit slips, so the tenants can mail the rent checks directly to his bank)
2.) Build a network of contractors that you trust that can deal with repair issues
3.) Be careful to pick long term renters to reduce turnover
4.) Schedule a time to visit the properties, and schedule a fairly intense schedule of showings to try to rent it yourself. If it can't be rented before he leaves town, he hires a local Realtor to rent it out.
5.) Buy houses in nicer areas
6.) Take care of tenants....If carpet is worn, replace it. If the house needs to be painted, paint it.
7.) Try to sign multiple year leases
8.) Raise the rent on a regular basis. Not a lot. Use 3% a year.
9.) It's better to take less money and get a higher quality tenant, than to get more money, and a lower quality tenant.
Tim's Criteria To Find Long-Term Tenants:
1.) Decent credit history
2.) Good prior rental history
3.) Decent job and income
Favorite Real Estate Book:
Rich Dad Poor Dad by Robert Kiyosaki
Buy properties right. What you make on a property is determined by what you pay for it.