Do you want to own and lease property but live in a pricy market? Rather than defraying the costs of an expensive home by renting out the basement or pursuing supplementary employment, it may be worthwhile to purchase and lease out rental properties dozens, hundreds, or even thousands of miles away X. In other words, become a remote landlord! To be clear, being a remote landlord comes with its fair share of complications and isn’t something you should do without careful consideration X. However, you may determine that the rewards are worth the risks and the benefits worth the inconveniences.
Homeownership has traditionally been and remains an important way to build wealth in the United States X.
With millennials set to get priced out of the real estate market yet again X, now is an opportune time to be a remote landlord. Much of the pros of homeownership extend to remote landlords—besides having a place to live, of course. Consider this: home prices increased by 35% from 2012 to 2017, with homeowners seeing the value of their real estate investment grow by 7% per year X. Whether you’re residing there or not, that’s quite the return on investment. This is the case for resident and remote landlords alike but in an ideal situation, your tenants would cover mortgage payments you have on the property and a little extra—allowing you to build equity while providing passive income X.
Naturally, being a landlord from a distance has its shortcomings, much of which have to do with the tenants. For example, if your tenant is irresponsible, there is the risk they may not keep the property in a good condition and may even damage it. Moreover, there is the risk of tenant delinquency, or failure to pay rent, which may cost you, the landlord, plenty of money X. Like the positives, the potential risks highlighted are not limited to remote landlords, but it’s safe to say the distance adds a layer of complexity and difficulty.
While managing properties remotely may seem an insurmountable endeavor, with the resources and tools available to you today, it’s a lot more feasible than you may think. To start, you may purchase the property on a long-distance investing platform, such as
For damages that tenants may cause, there exists home warranty service agreements that cover the repair or replacement of many major home system components and appliances X. You don’t even need to have the bandwidth to oversee day to day operations of your property! These days, you may hire a property manager, who will help select your tenants and interact with your renters should they have problems, as well as field maintenance requests and concerns X.
Being a remote landlord might be the move for you if you wish to tap into the wealth building potential of homeownership but are residing in an absurdly expensive market.
Although there’s the risk of irresponsible and delinquent tenants, the gaining of equity and a passive stream of income are certainly worth it. With the many resources of today, including long-distance investing platforms, syndicated listings, home warranty service agreements, and property management services, it’s as easy as ever to do it.