Blog & Advice

How To Manage an Out of State Rental(s)

Investing in rental properties in multiple states has become a solid strategy for real estate investors looking to diversify their portfolios. But tapping into high-demand markets and managing rental properties from hundreds (or even thousands) of miles away comes with its share of challenges. If you’ve struggled to manage out of state rentals or even let the thought of long-distance property ownership stop you from investing out of your home market, this article is for you!
The fact is that managing out-of-state rentals doesn’t need to be complicated. With the right tools, team, and mindset, you can successfully manage any property from a distance. Let’s break down how to do it the smart way.

1. Do Your Homework Before You Buy

The first step to managing a successful out-of-state rental starts with doing thorough research before you buy. In addition to researching the property, it’s important to take the time to gather as much information as you can about the local rental real estate market. For example, is the area experiencing job growth? Is it landlord-friendly? What are the average rental rates and vacancy trends? These questions are a great place to start.

Also, don’t overlook state and local landlord-tenant laws. Every region has its own rules about things like security deposits, notice periods, accessibility requirements, and eviction procedures. Make sure you have a solid understanding of how these and other regulations might affect your plans. Knowing the legal landscape can save you from future headaches.
And of course, location matters. When searching for out-of-state properties, look for neighborhoods with strong rental demand, low crime, and access to amenities. Even if the numbers add up, it’s important to try and grasp the local nuances of which areas are safe and appealing for renters - and which aren’t. Choosing a property in a desirable area will help you more easily attract quality tenants.

2. Build a Trusted Local Network

Beyond the property itself, one of the most important parts of successfully managing an out-of-state rental property is having a team you can rely on. As an investor, you can’t be everywhere at once. And when you're managing a rental from a distance, having trustworthy boots on the ground is a must.
Your local network for an out-of-state rental property should include many of the same team members you’d rely on to invest in your home market. A team you can rely on should include licensed contractors for repairs, a reliable handyman for minor fixes, a real estate attorney for legal issues, and perhaps a local leasing agent to help fill vacancies. These professionals can help you manage your property and act as your eyes and ears when you can’t be there in person.

Not sure where to start? This is where a professional property management company like Real Property Management can help!

3. Use Technology to Stay Connected

One of the great things about owning investment properties today is that modern technology can make long-distance land lording a lot more manageable. To keep an eye on properties that are out-of-state, consider installing smart home devices like digital locks, remote thermostats, and security systems. These devices can help keep your property secure and efficient.
It’s also important to leverage technology on the ownership side of things. For example, investing in quality property management software can help you monitor rent payments, handle maintenance requests, and track communications with tenants. And if you haven’t already, consider offering virtual walk-throughs and video calls as part of your marketing and management process. Both can help you fill vacancies and add a personal touch even from afar.

4. Hire a Professional Property Manager

Let’s be real - even after you’ve done your research, assembled a trustworthy team, and invested in technology, managing a rental property at a distance can still be a time-consuming and challenging endeavor. Handling tenant issues, repairs, and rent collection remotely is not for the faint of heart! That’s where a property management company becomes your secret weapon.

A professional property manager takes care of everything: marketing your rental, screening tenants, handling move-ins and move-outs, coordinating maintenance, and ensuring legal compliance. In fact, if you choose the right property manager, they can even prepare market analyses for properties you want to buy, give you insider information on the local market, and even direct you to off-market deals. You get peace of mind knowing your investment is in good hands and a savvy local professional ready to support every aspect of your success.

Distance Doesn’t Have to Be a Dealbreaker

Owning out-of-state rental property can be an incredibly rewarding investment, offering strong returns and portfolio diversification. The key is to have the right systems, technology, and team in place to support you.
And you don’t have to do it alone. At Real Property Management, we combine local expertise with national support. So, whether your rental is across the city or across the country, we’ve got it covered.
Ready to take the stress out of managing your out-of-state property? Contact your local Real Property Management office today to learn more about the quality services we offer.