Let us say you own a property in the US but live somewhere in Canada or maybe Europe. If you were to rent that US-based property of yours, how would you manage it? In fact, can you actually manage a rental property from abroad in the first place?
As of 2023, the US had around 45 million units of housing occupied by renters. There are millions of commercial properties that are being rented out as well. In many cases, landlords who own these properties do not necessarily stay in the country. Even then they can manage these properties of theirs from abroad.
So yes; you can manage a rental property from abroad, but how exactly can you do so? We will tell you.
#1 Work with a Property Manager You Trust
This one might seem obvious, but it is worth stating: Having someone on the ground is often non-negotiable. A reliable property manager can be your eyes and ears, especially when you are thousands of miles away.
The goal is simple:
- Find someone who communicates well
- Make sure they understand local landlord-tenant laws
- Ensure that they can handle both maintenance and tenant issues without needing to loop you in for every minor hiccup
Try to establish a clear process early on – who approves expenses, how often updates should be given and what happens in emergencies. When you have someone competent handling things on-site, it makes managing a rental property remotely a whole lot less stressful.
#2 Get Proper Insurance Before You Leave
Before you hop on a plane or pack up your things, take a moment to review your current insurance situation. Standard homeowners insurance usually will not cut it once you start renting your place out, especially if you are no longer living there. If you are relying on coverage meant for owner-occupied homes, you are setting yourself up for problems down the road.
As a property owner renting out their building or land, you need landlord insurance. Unlike a basic policy, landlord insurance coverage is built to protect you against the specific risks that come with renting out a property. Risks like property damage, liability claims and even loss of rental income, in some cases, come to mind.
Also, it is not just about having any policy; it is about having the right landlord insurance policy in place. You need landlord coverage that actually matches your needs.
Landlord policy coverages may be limited strictly to the dwelling itself and liability protection. Hence, ensure you understand the coverage limits, know what is excluded and speak with your provider about special considerations for being an international landlord.
Landlord insurance is one of those things you hope you never need while you are abroad. Of course, you will be incredibly grateful that you have if something did go wrong.
#3 Set Up Online Systems for Rent Collection and Communication
Did you know that half of the renters in the US pay more than they can afford? This is mostly because of how the country has seen years of surging rents. As a result, many renters struggle to pay rent on time and landlords end up not getting paid for months.
When you live abroad, this struggle can be more concerning. However, at present, there is really no excuse for not having a solid digital setup. Rent collection should be automatic, trackable and hands-off.
Using online platforms makes life easier for everyone. You do not want to be chasing down rent while navigating currency exchange rates or time zone differences.
The same goes for communication. Have a clear channel where tenants can reach you or your property manager – email, a messaging app or a tenant portal. That way, tenants will not feel like they are left in the dark while you are out of the country.
#4 Have a Local Maintenance Team Ready
When something goes wrong – and face it, it will – you do not want your tenant calling you at 3 AM your time. You need a trusted maintenance crew or handyman in your property’s area who can respond quickly.
Try to build this team before you leave. That means researching and vetting local professionals, ideally ones recommended by your property manager.
If your tenant has to wait days for a fix just because you are not nearby, that reflects poorly on you as a landlord.
#5 Plan for the Unexpected And Budget for It
When you are managing a property from afar, surprises can cost you more than they would if you lived down the street. Whether it is a delayed repair, an unplanned vacancy or an issue with local regulations, having a financial cushion is a must.
Make sure you are putting aside enough from your rental income each month to cover unexpected costs. Try to revisit your budget at least once a year.
It is also wise to plan for times when you might not be able to respond right away. A backup contact person can help keep things from falling apart when you are temporarily unreachable.
#6 Stay in the Loop with Local Laws and Regulations
Rental laws change from time to time – everything from eviction procedures to allowable rent increases can vary by city and sometimes by neighborhood. When you are not living locally, it is even easier to overlook changes.
Make it a habit to check in with your property manager or a local attorney at least once a year. Staying informed can save you from legal trouble or fines and it will also help you stay competitive with your rental pricing and policies.
Remember: Being overseas is not an excuse for being out of touch.
So, all you landlords living abroad, what do you think? Is managing your rental properties truly that difficult if you are not within the same geographical boundaries as your properties? No, right?
The idea is simple: You have to be smart about how you oversee these properties. Living away from the rental properties – be it residential or commercial – is not the problem. Keeping yourself out of the loop, especially in terms of maintenance and insurance, can cost you.
