How to own investment properties when you travel.
Owning investment properties can be a fantastic way to build wealth, especially if you’re someone who loves traveling or finds yourself on the move frequently. However, managing these properties remotely can pose unique challenges. Don’t worry, though – with the right strategies and tools, you can make your investment work for you, even when you’re exploring new places or living in a different time zone.
Seven helpful tips for nomad real estate investors
Here are some tips to help you manage your investment properties successfully while still spending your time doing what you love: traveling.
Leverage technology
Technology is your best friend when it comes to managing properties from a distance. Use online platforms and apps that allow you to communicate with tenants, collect rent, and monitor your property’s condition.
For example, video calls and virtual tours can help you inspect your property and address any issues without needing to be there in person. Then you can also have a reliable system in place for online transactions, so rent collection is a breeze, no matter where you are in the world.
Build a trusted network
Having a reliable team on the ground is crucial when you’re managing properties from afar. This team might include a property manager, a handyman, a cleaner, and perhaps a landscaper. These individuals can handle day-to-day operations, from tenant inquiries and repairs to routine maintenance.
Choose people you trust and who have good reviews or were recommended by other property owners. This gives you your own set of eyes and ears at your property, ensuring everything runs smoothly in your absence.
When choosing a property manager, find a local company with boots on the ground. That means if you have a property in Dallas, Texas, you’ll want a Dallas property management company. If you’re in Upstate New York, you’ll want a New York-based company, etc.
Communicate clearly and often
Good communication is key to successful property management, especially when you’re not physically present. Keep in touch with your tenants and your team regularly. Make sure they know how to reach you in case of emergencies, and establish clear channels of communication, whether it’s email, phone, or a messaging app.
Being responsive and available, even from a distance, will help you build a good relationship with your tenants and team, making them more likely to cooperate with you and take care of your property.
Stay organized
When you’re juggling travel plans and property management, staying organized is key. Keep all your property-related documents, such as lease agreements, tenant contact information, and maintenance records, in one place, preferably in a digital format that you can access from anywhere. We recommend using tools like cloud storage and property management software to keep everything organized and accessible. This way, you won’t miss a beat, even if you’re on a different continent.
Understand local laws and regulations
Each state has its own set of laws and regulations regarding rental properties. Make sure you’re familiar with these, especially concerning landlord responsibilities and tenant rights. This knowledge will help you manage your property effectively and avoid legal issues.
If you’re unsure about anything, it might be worth consulting with a local real estate attorney or a property management company that can guide you through the legal landscape.
Automate where possible
Automation can make your life much easier when managing investment properties from afar. Set up automatic payments for recurring expenses like mortgages, insurance, and property taxes. Use technology to automate reminders for rent payments and lease renewals. The more you can streamline in a hands-off fashion, the less you’ll have to worry about missing important deadlines or payments while you’re enjoying your travels.
Schedule regular visits
While technology and a trusted team can handle most of the day-to-day management, there’s no real substitute for being there in person every now and then. Plan to visit your property periodically, not only to inspect its condition but also to maintain a personal connection with your tenants and local team. These visits give you a great opportunity to address any larger maintenance projects, update the property, and ensure that everything aligns with your expectations.
Adding it all up
Managing investment properties while traveling frequently might seem daunting at first, but with the right approach, it’s definitely possible. In fact, some would say it’s the best way to manage investment properties, as it forces you to remove yourself from the day-to-day tasks of the business and hand those time-consuming, stressful tasks off to someone else. Give it a try and see what you think!
