3 Ways Long Distance Landlords Are Vulnerable
Q: We just got back from vacation. While we were away we saw a property that I think would be a great rental investment. What do you think? Caroline, Bogota, NJ
A: Property management is a hands-on endeavor and is challenging enough when your property is located near you. Managing property far away is more challenging and real estate expenses often end up costing more than they would in your local area. This doesn’t mean you can’t handle owning properties in far away places, it just means it’s more precarious. When you are a long distance landlord, the success of your investment is more dependent on your property manager and local team of contractors and handymen on the ground than if your investment is local. Here are 3 ways long distance landlords are more vulnerable than local landlords:
1. More vulnerable to get ripped off by crooked contractors
2. More vulnerable to get ripped off by crooked property management companies
3. Out of town landlords sometimes get less favorable treatment in landlord-tenant court
You can certainly do the long distance landlord thing, but in my opinion it’s much easier to manage rental properties that are closer to where you are.
Thanks for your question, Caroline. For more real estate information and tips visit my blog at geraldlucas.com.