Investing in rental properties in Reno, Nevada is a good way to receive a steady income each month. Some real estate investors start by buying investment properties in their own area because they are more familiar with the local market and can also keep a watchful eye on them. As well as make repairs if needed.
Sometimes there are circumstances that puts you in a position of owning a rental property from out of state. For example, you want to expand your portfolio in a different market or maybe you simply just moved and do not want to sell.
Either way if you have a rental and are looking into being a landlord from out of state there are a few things you need to know to effectively manage the property. You can also hire a property manger in Reno, Nevada to help you, but if you choose to go at it alone or want to know how take the stress out of it, you are in the right place.
In this blog post we are going to discuss how to be a great Reno Nevada Landlord when you live out of state.
Know the Local Market and State Regulations
You always want to know both local and State markets if you wan to buy a rental property. This will better prepare you and enable you to make smarter decisions. The best thing you can do is visit the area yourself to get a good idea and feel for the area. Also, do your fair share of research so you can identify the best areas so you know where to visit. Contacting a local real estate professional will make this process go smother for you.
After you identified the area you want to invest or if you already have a rental property, you need to know city, county and state regulations. Know what you can and cannot do as well as what you should and shouldn’t do as a landlord. Each state is different and they have their own rules and regulations.
You are of course allowed to own rental properties form out of state, but you need to make the necessary disclosures in Nevada. A often overlooked Nevada law is NRS 118A. This law has to do with the disclosure of names and addresses of managers and owners; emergency telephone number; service of process. Which states in summary, “the landlord, or any person authorized to enter into a rental agreement on his or her behalf, shall disclose to the tenant in writing at or before the commencement of the tenancy: The name and address of the persons authorized to manage the premises; A person within this State authorized to act for and on behalf of the landlord for the purpose of service of process and receiving notices and demands; A telephone number at which a responsible person who resides in the county or within 60 miles of where the premises are located may be called in case of emergency.”
As you can see, you can own a rental from out of state but if you live outside the county or 60 miles outside, you will have to designate a trusted associate or manager who does. Staying within the state regulations could save you in the long run. Employing a property manager or desinating an associate will not just allow you to maintain the property, it will also help you take care of your tenant. This will lead to better tenant retention which will lower vacancy costs.
If you live out of state and you are a landlord, you need to be as organized as possible. When you are a landlord, there are many items you need to take care of and are responsible for. Not only will you be responsible for paying the mortgage and property taxes, you will also have to take care of the day to day task. For example, maintenance, repairs, screening tenants, background checks, property checks and more. Getting yourself organized will save you a lot of time a headaches down the road.
Create a Budget
Properly budgeting is key to not only maintaining but grow your financial wealth. Keeping track of your fiances for every rental you own will also you to identify where you can save money and maximize profits. You would need to ensure that the property produces a steady cash flow, or else the investment isn’t worth it. Preparing budget will allow you to do so.
Include all of you expenses. Which will included traveling cost, management fees, mortgage payments and taxes for example. If you want to be a pro landlord, get a repair fund allocated to each property to take care of any costly repairs. Review your budget every quarter to make sure your rental is cash flowing correctly and performing they way it should.
If you want to skip the budgeting and get monthly cost sheet email or mailed to you each month, consider hiring a property management company in Reno Nevada. Property managers will send you monthly and quarterly budget sheets to help you stay on-top of things. You will also have access to you own owner portal so you can check where money is being spent and received.
Keep Up With Technology
If you are dealing with one or more rental properties in one or more states, going high tech will makes you life a lot easier. This will allow you to be a great Reno Nevada Landlord when you live out of state. Not to mention saving you much needed time and energy. There are plenty websites you can use to assist you along the way with general information. They will allow you to research properties and give you the latest landlord tips and trick to help you succeed.
There are also several programs and apps for landlords can use in Nevada.That can help you find more investment properties. Also programs that will help you screen applicants by completing a credit a background check. Also have 24/7 access to you landlord portal to correctly manage each property.
Professional Property Management in Nevada
As we mentioned above hiring a property management company is essential for most people who have one or more rentals. Especially if you are an out of state landlord with multiples properties. Property mangers in the Reno, Nevada area will manage everything for you in addition to checking in on the property. Your tenants will have a close contact who can take care of any lease violations and schedule the proper repairs.
If your property needs repairs, it would be worth hiring a handyman to go to the property to make any necessary repairs or renovations. You can save a lot of time and effort by hiring help to repair or maintain your properties. You can spend more time focusing on your budgeting, and maybe find more rental properties or just living life while you maintain a good rental income.
If you you follow these easy steps you will be able to be a great Reno Nevada Landlord when you live out of state with very little issues.
If you need help managing you rental property, we are here to help. We will manage your rental for a flat fee each much. No additional fees or costs like other property management companies. Everything included.
We are an all in one brokerage that helps individuals successful buy, sell and invest in real estate. See why owners in Nevada choose to work with us.
If you have any questions or would like a free no obligation consultation to see if we are a good fit for you, contact us today.