Are you an out-of-state landlord? Is it really worth it?
While real estate investments can be profitable, being an out-of-state landlord can be challenging at best and a nightmare at worst. Local landlords experience far less stress and financial expenditures than absentee landlords. Here are some reasons you might want to consider dumping your out-of -state property and selling your house today.
- What’s Going on in the Market? Even if you used to live in the area or lived in the house and decided on renting versus selling when you moved to another state, you’ll never be as keenly aware of market nuances from a distance as you would be if a local resident. As we have seen in the past few years, markets can change dramatically in a short amount of time. Not having an intimate knowledge of the local real estate market can impede sound investment decisions.
- What’s Going on in the Neighborhood? It doesn’t take much for an entire neighborhood to experience property devaluation. Maybe someone down the block is neglecting their lawn, not painting their property when needed or otherwise neglecting their responsibilities. A few bad apples introduced into the neighborhood in the form of new owners or renters can turn the personality of an area around quickly. Without the opportunity to talk with neighbors from time to time, it is impossible to know if unemployment has hit the area hard with the potential of upcoming foreclosures. It is difficult, at best, to monitor trends that occur over time that could negatively impact the value of the property.
- What’s the Tenant Up to Now? When the cat’s away, the mice will play. It’s human nature. Tenants who know their landlord is out-of-state and unlikely to be paying regular visits may be less inclined to be on their best behavior and to maintain the property in good repair. Even if you have a lease that holds the tenants responsible for maintenance and repairs, they may not be motivated to invest in a property they do not own. And, if you are not around to inspect the property, who is going to notice?
- Extra Costs. Unless you are Houdini, you can’t escape your out-of-state responsibilities to be available for onsite events such as minor repairs and maintenance, candidate interviews and the other tasks that could be performed quite easily by a local landlord. As a consequence, you probably have to rely on the services of a property management firm. The fees charged by property managers, often in the 10% + range, eat into your profits.
- Travel. There may be times that travel is simply unavoidable. Legal issues can occur, whether eviction proceedings, arbitration hearings or lawsuits that may require your presence. In the event of damaged property and needed repairs, you’ll want to inspect the property yourself, unless you have a highly trusted contractor that you work with on a regular basis.
If you want to avoid the headaches and uncertainty associated with an out-of-state rental, you can sell your house today to a real estate investor for fast cash. If you want to stay in the real estate investment market, you can sell your house today and invest in a more manageable rental in your local area.
Do you have a piece of property (house, lot, or land) you’d like to sell fast? Fill out our Sell Fast Form and get a cash offer within one hour of us viewing the property.