How to Manage Out-of-State Rental Property Remotely [A-to-Z Guide]

If you’re an out-of-state investor, you must face the harsh truth that you cannot do it alone.

Having a great team of professionals and vendors who you can rely on is crucial to your success.

But here’s what your local agents bidding for your business won’t tell you: the team you need shouldn’t change whether you’re investing locally or from out of state.

If you are investing close to your home, where you can drive to and check up on your assets easily, you should still be working with a team.

Have you ever heard someone say that to work on your business, you can’t be working in your business? The same goes for real estate investing.

If you want to grow your portfolio, you can’t be the person handling every tenant showing, leaking toilet, or collecting rent.

You need to create systems and work with professionals to handle these jobs.

So, what local professionals do you really need to help run your real estate investment business?

Exactly who you will need will depend on the type of business you’re building — whether you need to manage an Airbnb property remotely or if it’s just traditional long-distance property management.

Below are the four crucial aspects of your rental business that better be facilitated by local professionals.

#1 Maintenance

From time to time, appliances, fixtures, and other components of your property need repair.

When this happens, the renter submits a maintenance request, and it’s your responsibility to have the problem fixed in a timely manner.

When managing property from a distance, you need a local contractor you can trust, who’s going to deliver quality work, and who is affordable.

Finding a contractor is when due diligence and your network come into play. Vet your contractors with the same rigor as you would a new business partner because, in essence, that’s what they are.

They hold the power to dramatically increase the value of your investment or jeopardize it with subpar work.

Owners of vacation rentals need to have a dependable team of cleaners who can maintain their rental units in impeccable condition, easily adjusting to the heavy tenant traffic.

But if you use Airbnb or similar platforms, they provide these services via their app.

#2 Marketing

You need someone who advertises your property for rent, conducts showings, and facilitates paperwork matters when signing a lease.

This is a job for a local real estate agent specialized in rentals — a leasing agent. They will handle the aforementioned tasks with the expertise you may not have at a commission based on your rental rate.

#3 Lease Guarantee

Lease guarantor companies, such as The Guarantors, protect you from your tenant not paying rent. They take responsibility for rent and pay it for the renter should the tenant lose their payment ability.

These companies are often used when a tenant fails to fully meet your tenant screening requirements, but you are willing to rent to them if they use a guarantor.

This is convenient because your revenue is protected while it’s the tenant who pays for the guarantor’s services.

You can find a local lease guarantor or go with a company from this list of the best lease guarantor companies nationwide.

#4 Legal Counsel

When you decided to become a real estate investor, did you think you would need an attorney as part of your team?

While you shouldn’t need a lawyer for every deal or year, legal disputes are inevitable once you build up a reasonable portfolio.

What you don’t want to do is wait until you’re in crisis before you start connecting with lawyers.

Once you start investing in a market, you want to make sure you have the support you need in the event something goes wrong.

If you wait until you’re in the middle of a legal dispute, you will be rushed to find representation.

As a result, you’re going to be stressed for time, and you’re not going to find the right professional for the job.

The right time to connect with a local real estate lawyer is when you enter the market.

Establishing this connection early paves the way for smooth navigation through the legal aspects of property investment.

A competent real estate attorney will defend against litigation and proactively guide you in contract reviews, negotiations, and compliance with local real estate laws, fortifying your business against potential legal pitfalls.

When aligned with a sharp legal mind, you ensure that your contracts are airtight, your transactions comply with the law, and your rights as an investor are firmly upheld.

This isn’t about waiting for trouble; it’s about preemptive action. Engaging with legal counsel should be viewed as an investment in your business’s infrastructure — one that delivers returns by minimizing risk and enhancing your negotiating position.

I’ve seen many property investors lose money and even properties because they didn’t have the right protection in place from the start.

In real estate, the stakes are high. Get the right legal support so you can manage a rental property from out-of-state with confidence and the protection you need.

To manage your vacation rental remotely with more efficiency, you must turn to property management software for landlords, including one of the most important marketing tools for a real estate business — a property management CRM.

They will help you save time, avoid errors, and easily manage a large number of rental units.

Here’s a list of valuable tools for residential and commercial types of real estate investors to use when managing rental property remotely:

Local Rental Market Monitoring

• RentCast provides rental price data, allowing landlords to compare their rates with comparable properties.

• DealCheck, along with local rental rates, informs you on property comps, helping you buy and sell rental properties wisely.

Advertising

• Social media & Craigslist: don’t underestimate the power of Craigslist and Facebook Marketplace for advertising rentals.

• Avail is a part of the realtor.com network. Among other functions, this rental listing syndication site allows you to list your property to multiple for rent by owner websites at once.

Tenant Application and Screening

• RentPrep offers affordable tenant screening services for landlords.

Full-Service Property Management Tools

• Baselane and Buildium are some of the best property management tools offering a complete landlord suite, including real estate accounting software, rent collection software for landlords, and more.

Bookkeeping and Accounting

• Stessa, as one of the leading landlord bookkeeping software platforms, offers financial tracking, reporting, and operational management specifically for real estate.

• Landlord Studio is also widely used as property management accounting software and for financial management.

• Mesha.club is one of the best vacation rental accounting software tools.

• FreshBooks is another good Airbnb accounting software.

Acquisition and Deal Analysis

• DealMachine helps users identify off-market investment opportunities. It’s among the most popular driving for dollars apps.

• PropStream offers insights into local rental trends as well as property prices, helping you make right acquisition decisions. This is among the most popular investment property analysis software tools for real estate investors.

Booking Engines for Vacation Rentals

• Airbnb is all-in-one short-term rental booking software and a vacation rental by owner website for managing vacation rental reservations. It’s very convenient, but using it is even easier with these third-party Airbnb management apps and Airbnb automation software.

• Vrbo is also one of the best vacation rental software platforms, but it specializes exclusively in standalone vacation rentals.

Vacation Rental Analytics Software

• Mashvisor is the most popular short-term rental analytics software tool and Airbnb data website. You can use it to see vacation rental property trends and adjust your rates accordingly.

Multifamily Management Software

• DoorLoop is among the most popular property management software for multifamily homes.

• Innago is another leading vendor in the realm of residential and commercial property management tools, including tax software for real estate investors.

Document Signing

• DocuSign is a leader in electronic signatures.

• Dropbox Sign also enables legal document sharing and signing.

Rather than doing everything described above for managing rental property remotely yourself, you can hire a trustworthy local property manager.

This individual or company becomes your eyes and ears, ensuring that your property is well-maintained and generates income.

What do property managers do for you exactly? In short, they are going to handle the everyday tasks, including:

• Marketing — This involves executing targeted marketing strategies, ensuring your property captures attention in the marketplace.

• Showings — They arrange and conduct property showings, efficiently bridging the gap between potential tenants and your real estate.

• Tenant relations — Building and maintaining strong tenant relationships are at the core of their duties, essential for low vacancy rates.

• Rent collection — Streamlined rent collection process that secures your cash flow with professionalism.

• Market adaptation — Your property manager is a market expert aware of economic shifts, allowing you to adjust pricing and positioning strategically.

• Maintenance — They oversee property maintenance, promptly addressing issues to preserve the property’s value and tenant satisfaction.

• Crisis management — In times of unexpected challenges, your property manager ensures quick resolution and minimal disruption to your investment’s performance.

Not all rental management firms are created equal. Choosing a property management company that meets your expectations is pivotal.

Look for a firm with a robust track record, transparent processes, and glowing client testimonials.

Inquire about their tenant screening methods, maintenance protocols, and communication practices.

Before an interview with a potential company, make a list of questions to ask a property manager, such as:

• How do you handle tenant disputes?
• What is your average vacancy rate?
• How do you determine and collect rent?
• What is your screening process?
• How do you approach routine maintenance?
• What’s your tenant response time?
• How do you handle after-hours emergency calls?

Being a remote property investor can open up incredible opportunities for strong returns at an affordable price point. Your rental management company is your strategic partner.

Select a top-notch property management company to safeguard your investment and free up your time, so you can focus on growing your portfolio.

If you still feel a lack of confidence and expertise being an obstacle to buying a property out of state and managing it remotely, you can always compensate for it by learning from experts.

Here are a few resources that can help you become a more skillful landlord:

• best landlord courses
• best multifamily investing courses
• best real estate investor courses