Part I

Investment Property….. Long Distance.    

Home Away From Home

Our world is shrinking. That’s Right! Places may still be the same distance from each other in terms of mileage, but influences such as the internet and a growing mobility within our society have made those distances diminish, at least within our minds. Buying investment property has become easier than ever.

And partly because of this, property owners and investors no longer try to build a “monopoly” by having three adjoining properties along the same street. It is certainly acceptable, and in many cases even advantageous to own “Kentucky Avenue” and “Park Place”. 

It has become increasingly easy to search and find excellent investment opportunities from coast to coast and beyond.  A mountainside cabin or an oceanfront property may be available at a STEAL…. a true investors dream. But buying investment property that is not next door often presents a unique set of circumstances that must be considered before taking possession of a newly acquired home.

Now don’t let that stop you from snatching up that once in a lifetime opportunity, you just have a bit of homework to do. In preparation for managing such a property, you will need to determine if you will be looking for a tenant that is ‘long term’ (usually longer than 30 days) or “short term, which can be for as little as a one night rental.

Finding the right Tenant

Long term rentals can often be done ‘long distance’ rather easily if you are able to locate and screen potential renters and show the property until the perfect match comes along. Once your property has been rented, payments can be handled electronically or by mail. Care, upkeep and repairs to a rental home can be negotiated as part of the renter’s responsibilities.

Making the decision to locate a long term renter can eliminate many of the headaches of owning a property long distance. This is based on the simple fact that someone with a twelve month lease will want the home maintained and kept in good repair because technically, as long as they are paying the lease, it is THEIR home.

Maximizing Profits

But what if your investment is located in a vacation destination such as an oceanfront property? It’s very likely that the best potential for income will be from renting your property for one or two nights, or by the week. Short term rentals are often found to be much more profitable depending on your selected location. But who will change the sheets?

That’s right, short term rentals require a house keeping service. Then there are factors like check-in, deposits, routine maintenance and a whole host of issues that have to be considered. It’s almost certain that your weekend vacationers will not want to be cutting the grass and this is where a local property management service may come in handy.