Having rental properties is a great way to have a steady monthly income. Beginning real estate investors typically stick to rental properties in their own area because they are familiar with the market and can easily check on their properties and make some repairs if necessary. Once you have enough experience and the means to expand your territory, here are 6 tips to be a great San Antonio landlord when you live out of state.
Know the Local Market and State Regulations
It is important to know the local market of San Antonio in Texas. This will require a little bit of research and possibly a reconnaissance visit or two to get a good feel for the area. Give Big Buck Home Buyers a call today at (210) 920-5280 to discuss the local market of San Antonio to find the best place to look for rental properties. You will have to know the area’s regulations to make sure your property is following the proper code at all times. It may also be necessary to include certain verbiage in your leases as well to make sure the tenants also follow the regulations.
You are responsible for several things as a landlord including the mortgage payment, property taxes, maintenance and repair work, selecting tenants, and checking up on your property to name a few. It may be wise to employ a property management company in the San Antonio area top help you with some of these items, but you should still be prudent and double-check all of your ducks are in a row because you are ultimately responsible.
Prepare a Budget
Using a property management company doesn’t replace the need for you to maintain your own financial records. You need to make sure that you are receiving timely (full!) rent payments and that you maintaining cash flow otherwise the property is not a good investment. Be sure to include travel expenses and management expenses in addition to your mortgage and tax expenses in your budget. Also, a modest repair fund should be available for each property as well. At minimum, review your budget every quarter, to ensure that your real estate investment is performing as it should.
Be sure to stay in the loop with the latest real estate technology, especially when dealing with multiple properties in multiple states. This technology will save you a lot of time and energy. Websites can be used for general investment knowledge and property research, find landlord tips and tricks, access market area analytics, find additional rental properties, locate the latest legal advice and forms, perform credit and background checks, and be in contact with local real estate professionals and lenders. Also, encourage your property management company to use a property management portal. This can give you another way to keep an eye on the property’s rent collection.
Professional Property Management
If you invest in an area outside of your home state, it would be a good idea to budget for a professional property management company in your budget for each property. It is impossible for you to travel to a property for every little problem and you certainly can’t be in two places at once. This is where a property manager can become extremely valuable. Property managers in the San Antonio area can check on your properties regularly to make sure that any problems are addressed quickly and professionally. Your tenants will likely having this local contact since they will know that any violations or urgent repairs can be taken care of quickly.
Repairs on a rental property are inevitable. If the property management company cannot hire a handyman for you then it may be necessary for you to find a local handyman that can take care of most repairs. This can save you a ton of time, energy and money. Lets be honest, you don’t have the time to fly across the country to fix a toilet! Hiring help will free up your time so that you can focus on on your budgeting and maybe finding more rental properties!