Maybe you are a homeowner who has chosen to travel or relocate abroad and would wish to rent out your home. Or maybe you own a property that you rent out either to residential or commercial users. Whichever your case, you have made the right choice of using your property to earn a passive monthly income while you travel, have fun, and create other revenue streams around the world. You can always get your home back whenever you’re ready to move back in.
But managing your property while traveling abroad can be challenging. First, you must ensure that all your tenants are happy and well taken care of. That’s how you will get them to stay. Secondly, you have to ensure that the property stays in perfect condition throughout a tenant’s stay. You, therefore, need to choose a tenant who will take care of it as if it were their own. Thirdly, you must ensure that tenants make necessary payments in a timely manner, even though you aren’t in a position to knock on their door if they default. Those are some of the challenges that make it easy to manage your property when traveling.
To help you achieve your dream of earning a passive income as you travel, here are a few tips for managing your rental properties remotely:
Only rent out your property to tenants you can trust
Whenever possible, only rent out your property to people you know personally and who have earned your trust. That includes family members, former classmates, friends, or friends to people you know and trust. If you must rent to someone you don’t know, do your due diligence to ensure that their rental background is beyond reproach. Contact their referees to confirm that they really are who they say they are. The worst that such a tenant can do is fail to pay rent, which you can always square up with them once you’re back. A dishonest stranger can do worse, e.g. list the property on Airbnb, remove landscaping, do drugs, or even renovate the house without your approval, and then disappear into thin air.
2. Communicate Regularly
Even if you know and trust the tenant, you cannot afford to trust them blindly. You need to maintain open communication lines with them throughout their tenancy. Think of yourself as a lover in a long-distance romantic relationship with the property; make it your responsibility to establish regular communication with each tenant. Call them regularly and get all necessary updates to eliminate the surprises that arise when you can’t get a hold of one another. Encourage them to share images and videos regularly to ensure that the property is in the best possible condition. You’d rather incentivize the tenants to share videos and images by taking the rent down a notch than demand a high rent only to end up spending big bucks on avoidable renovations.
3. Work with a property manager
Even if you know and trust the tenant, you cannot afford to trust them blindly. You need to maintain open communication lines with them throughout their tenancy. Think of yourself as a lover in a long-distance romantic relationship with the property; make it your responsibility to establish regular communication with each tenant. Call them regularly and get all necessary updates to eliminate the surprises that arise when you can’t get a hold of one another. Encourage them to share images and videos regularly to ensure that the property is in the best possible condition. You’d rather incentivize the tenants to share videos and images by taking the rent down a notch than demand a high rent only to end up spending big bucks on avoidable renovations.
4. Get rental property insurance
A good insurance cover will safeguard your property from costly hazards e.g. fire accidents, flood damages, earthquake damages, theft or breakdown of expensive equipment, and slip & fall accidents on the property. Some insurers even cover damages that may occur when the property is vacant.
5. Adopt electronic payment methods
Collecting rent via physical checks when you live in another country can be hectic. Things get a lot easier if your tenants pay their rent electronically through online banking. Your tenants can use online platforms such as Venmo, Paypal, and Zelle to pay rent conveniently.
Final word
When you relocate to a different country or city, it is advisable to rent out the home for an extra revenue stream. Technology has made it possible for anyone to be an out-of-town landlord. Just remember to be creative in the remote management of your rental property.
Post Written By: Lisa Mottins