How to Rent Out a House Long Distance: A Guide for Out-of-State Landlords
Owning a rental property in another state can be a wise investment, but managing it from miles away comes with its own set of challenges. From finding reliable tenants to handling maintenance issues, long distance landlords need a solid strategy to keep their rental property running smoothly.
Whether relocating for work, inheriting a property, or simply expanding your real estate portfolio, managing a rental remotely is entirely possible with the right approach. In this guide, we’ll cover 8 essential tips to help you stay organized, protect your investment, and ensure a hassle-free rental experience—even from afar.
Can You Rent Out a House Long Distance? # Tips for Out-of-State Landlords
You can rent out a house long distance, but it comes with various challenges. Here are 8 tips to have a more effortless experience as an out-of-state landlord:
1. Find reliable tenants.
Since you won’t be nearby to check on your property, it’s essential to have trustworthy tenants. That way, you’ll be able to relax and rest assured that your rental is in good hands—even if you are hundreds of miles away. The best way to find reliable tenants is to screen every potential renter thoroughly. During the screening process, you’ll be able to spot red flags and quickly eliminate individuals you don’t think you could trust to care for your property adequately.
Screening involves checking the applicant’s rental history, verifying their employment, running a credit report and background check, checking for past evictions, and contacting references. As an out-of-state landlord, you can also take it further and conduct a phone or video interview with promising prospective tenants. Here are a few questions you could ask them during the call:
- Do you have a reliable source of income and job security?
- Would your lifestyle affect your use of the property (e.g., pets and children may require extra space or solid fixtures)?
- What’s your preferred method of communication, and how often would you like to touch base?
- Can you take some responsibility for maintaining the property (e.g., if you have a pool or garden)?
Ask around to find solid tenants, including family or friends. However, remember that these bonds can lead to a conflict of interest and unnecessary stress. Ensure you’re screening every potential tenant, even if you know them already. Screening potential tenants gives you peace of mind and helps you lay out expectations for renters even if you’re not always physically present.
2. Craft a straightforward lease.
Another aspect of renting out a house long-distance is having a crystal-clear lease agreement. Doing so ensures your tenants don’t take advantage of your property and communicates clear expectations from the get-go. When writing a lease, including who is responsible for what, damage assessment and collections, pet and smoking policies, payment due dates and late fee on late rent policies, and any other relevant concerns. Review the lease terms with your tenant prior to their move-in, allowing time for questions to be asked and clarity for any confusing part. Give them a physical copy of the lease for reference as needed.
If a tenant breaks the lease terms, send a formal, professional letter with a warning or have a property manager deliver the notice. Additionally, having a property manager visit the property or go there every few months is crucial to ensuring the lease is being followed.
3. Ensure clear communication.
Communication goes beyond just crafting a clear lease agreement. Establishing clear communication before tenants move in and while living at your property is key. As an out-of-state landlord, you can just swing by in person every month, but you can set up ways to communicate regularly. Whether by email, text, or phone call, set clear expectations for how often you’ll touch base and which method of communication you’ll use. Regular communication fosters a positive tenant-landlord relationship and ensures your property is cared for according to your standards.
Outline your communication methods and frequency in the lease agreement to ensure clarity from the beginning. Provide tenants with multiple ways to contact you or your property manager in case of emergencies or urgent maintenance issues.
4. Establish local connections.
One challenge of renting out a house long distance is that you may not know where to go for different property issues. What if your rental has a plumbing issue, but you don’t know who you can trust to provide affordable and effective solutions? A list of trusted local service providers can be a game-changer for out-of-state landlords. Look up plumbers, electricians, and other maintenance specialists in the area before placing tenants on the property. Read each company’s reviews, ask friends or locals in the area for recommendations, and even call the service providers to get a feel for their performance. Finding professionals you can rely on is essential since you won’t be there to check if they’ve done the job correctly. Build a list of service providers in the area and print out a copy with their contact information for your tenants. Doing so will help renters feel at ease, knowing they can call someone in case of a maintenance emergency.
If you’re working with a property manager, they likely already have a list of trusted service providers in the area—and often offer discounted service rates. Whether you’re renting out a property on your own or have hired a management company, ensure your tenants have a list of maintenance specialists to call if needed.
5. Set up automated payments.
Automation is a modern tool that makes rent payments seamless for both landlords and tenants. If you’re used to accepting cash or checks on the first of every month, switching to automation may take some adjustment—but the initial setup is well worth it, especially for out-of-state rental properties. Automated payment systems like Stessa, ClickPay, or Rentec Direct make it easy for you to receive your rental payments on time as a long distance landlord. It also prevents late rent payments and makes it easier for tenants to pay on time without even thinking about it. Make sure to send tenants records of each payment and keep a copy for yourself.
If you partner with a property manager, they can often set up automatic online payments for tenants, making the process simple and easy.
6. Inspect your out-of-state property.
Inspections ensure your property is in good condition and ready for new tenants to move in. If you can’t travel to the rental, have a property manager or trusted friend inspect. Your inspections should include:
- A walk-through inspection before a renter moves in
- A final inspection after tenants move out
- Regular inspections throughout the year (according to your preferences)
When conducting move-in and move-out inspections, write down the condition of each room and sign and date it. If you can take the time to travel to your rental, regular inspections can be an extra reassurance, but they’re not always necessary. Remember that you’ll need to notify tenants of an inspection, often a day or two before the visit. If you’ve hired a property manager, they can do the physical inspections for you, lessening the load on your shoulders.
7. Know local laws and regulations.
As an out-of-state landlord, staying on top of local regulations can be challenging. Some states are landlord-friendly, while others have stricter laws. Before purchasing your first rental property, thoroughly research local laws to ensure compliance. Each state has different regulations that may impact you as a landlord. For example, in California, landlords cannot charge more than two months’ rent for an unfurnished property or three months’ rent for a security deposit. Additionally, tenants in California can legally withhold up to 7% of their rent if a landlord fails to pay their local business taxes, which could catch some landlords off guard. Municipal laws can also affect lease agreements, so understanding both state and local regulations is key to long-term success.
8. Consider hiring a property manager.
Managing an out-of-state rental property presents multiple hurdles, including inspections, finding reliable service providers, and ensuring your tenants are dependable. Fortunately, a property manager can help you maintain your property year-round, giving you peace of mind and providing a positive landlord-tenant relationship. Oftentimes, property managers handle the following tasks:
- Screening potential tenants
- Property marketing
- Ongoing in-person inspections
- Rent collection and owner payments
- Professional evictions
- And more
Hiring a property manager can significantly benefit long distance landlords, especially since they know the local housing market and the region’s regulations. They can be the ones you turn to when you’re worried about your property or want to hear how it’s performing. Property managers can also bridge the communication gap between tenants and landlords, which is especially helpful for out-of-state landlords. You can find a property manager by asking for referrals, consulting real estate agents in the state where your remote property is, or hiring a trusted friend to act as a property manager.
If you own a property in Southern California but live out of state or too far to manage it, trust TrueDoor Property Management to handle it. For over 20 years, we’ve managed rentals in the Golden State, earning a reputation as the top property management company in the area. Our Orange County property management services cover Huntington Beach, Irvine, and Anaheim. TrueDoor’s Inland Empire property management solutions also serve Redlands, Rancho Cucamonga, and beyond.
We understand how difficult it can be as a long-distance landlord, and we aim to make it as easy as possible for you. Our team handles tenant screening and placement, rent collection, property marketing, inspections, maintenance by trusted service providers, timely rent collection, evictions, and more. TrueDoor’s comprehensive property management services are the solution you need to become a wealthy long distance landlord. Let go of the stress and trust our team to care for your property like ours. Contact our Southern California property managers to experience how we can make your out-of-state rental ownership experience seamless.