The fear of being tied down by one’s real estate investments probably limits you more than it should. Some people pass on real estate investment opportunities because they think they’re going to be moving within a couple of years. Others simply feel that managing real estate investments and domestic or international travel are simply incompatible.
Undoubtedly, being freed from managing one’s property investments begins and ends with successfully delegating responsibility.
Remote Property Management
The task of successfully managing one’s own property requires a fair bit of work at the outset, but it can be a rewarding alternative that can allow one to travel or to live in a somewhat distant community. A number of investors in Temecula properties live in either San Diego or Los Angeles. What are the secrets to doing this while not compromising the performance of your properties?
Establish Quality Contacts
On one level, the difference between handling problems when you’re in town versus when your away can be easily overstated. If you’ve established contacts with a number of handymen, electricians, plumbers, and HVAC repairmen, then you can quickly send one over to complete a specific repair when it becomes necessary. It doesn’t really matter whether the call is coming from your own San Diego residence or from another country.
Simplified Rent Collection
When it comes to tenants paying rent, setting up an account that they can deposit the rent directly into is a solution. An investor can be traveling anywhere, and as long as you have access to the Internet, it is easy to check whether the rent has been paid or not. Nowadays, tenants can select from a number of means to have that money transferred into such an account. The collection of rents essentially gets more and more automated, and monitoring is really quite simple.
The final issue, filling vacancies, is a bit more challenging. However, this does not become that much of a problem unless you’re away for many weeks or months at a time. There are a number of effective strategies to fill vacancies from afar. First, one can use the MLS system to find renters. This is admittedly a higher cost option but realtors will often find you higher-quality tenants in the process. Consider offering above-market commissions to generate momentum when using this approach. It’s important to realize that the traditional methods, like signs, or the use of Craigslist can work if you simply have a relevant handyman available to head over to the property and open the door when it’s time to show a prospective tenant a unit.
Managing Real Estate Investments
Nowadays, a smart phone or a tablet with Internet access allows one to remotely manage most of the tasks that require attention. Liberating real estate investors from their property investments so that they can more freely travel or live in distant communities is more possible than ever before. It does demand an organized and disciplined approach, especially at the outset, to having the right people and systems in place.