Remote investing can be a very profitable venture when done right. However, not all investors are willing to invest remotely because they are unsure on how to keep track of the property. However, this concern can be addressed with these simple strategies:
Self-Managing Vs Hiring A Lettings Agent
Self-managing remote investment properties is, probably, the most popular system used by remote investors.
When you “self-manage” a property, by the way, this means you’re going to: oversee the screening of potential tenants, hiring of local handymen to take care of maintenance, and management of the entire property all on your own, even if it’s located hundreds of miles away from your home.
Believe it or not, some investors drive, take the train, or even ride an airplane just to check on their investments and their tenants, because it’s a cheaper alternative to hiring a third party or leasing agents.
As I’ve said earlier, hiring a lettings agent could take a chunk out of your potential profits, but the upside is you don’t have to make the constant trip to the other side of the country just to evict a tenant or make sure that the house is still in a good condition. Another advantage of hiring a local lettings agent is that they can make sure that the handymen you hire aren’t ripping you off on the price of their services.
But before you rush into hiring third parties, know that many remote investors have been duped by bad letting agents over the years! One of the many horror stories being circled around is of a letting agent, who used the property entrusted to him into his own, personal love nest!
A close friend of mine, who also invests remotely, says that the total profit dictates whether he would go for self-management or hire a lettings agent.
If flying solo would lead to higher profits, then he would take the trip to the moon and back as often as he can, but if hiring a lettings agent would produce the same profits, then he has no problem with a stranger looking after his investment.
Keep It Close To Family
I’ve already discussed that remote investment requires the constant trip out of town. Not only will this cost you energy and time, but also money.
A strategy I’ve picked up along the way is to find a property near family relatives or close friends, so that when you’re going to make the trip out of town, you can stay over at their place during your visit.
You’ve hit 2 birds with one stone, essentially, since you were able to monitor the status of your investment property, while seeing your families and friends when business is done.
Look Out For New Technology
Mobile communication apps, like Instant Messaging, Skype, or WeChat, has made it easier for people to reach one another, these innovations have also helped remote investors connect with their buyers, tenants, and handymen from anywhere in the country within minutes.
One company called, MaxMon, also offers a new application for Android phones that gives owners daily reports on the status of their remote property investment. It also promises to alert the owner of intruders and critical environmental changes that could cause huge damage on your property.