Disclosure: This is a collaborative post.
You just bought a property in Los Angeles- well, congratulations! But how will you manage it if you live overseas? After all, it determines whether the property you invest in comforts you or further costs you.
The benefits of owning properties overseas are many. If managed wisely, it diversifies your investment portfolio and reigns in high long-term yields.
With that in mind, we’ve curated a list of simple steps to manage your rental property effectively and prevent the possibility of drowning you in unexpected pitfalls.
Hire A Property Manager
The best way to streamline the property management process is to let someone else do it for you. Most homeowners in Los Angeles who have tried to manage their overseas property on their own say that the time spent isn’t worth it.
Therefore, hiring a property manager from a reputable Los Angeles Property Management Company can be your best bet, the homeowners in LA remark! The professionals perform the day-to-day operations from maintaining the home to finding the right tenants for you. They can also take care of tenant evictions by strictly following the state laws.
Screen Tenants Virtually
While living abroad, determining whether a tenant is right for your property can be difficult and slow when relying on written communication.
If hiring a property manager is not an option, you may consider screening tenants virtually via Skype, Zoom, Google Meet, etc. It is the best way to meet your tenants face-to-face before approving or declining their application.
Get Landlord Insurance
A landlord’s insurance can protect you from situations you and your property manager can’t control, such as floods, storms, accidents, etc. Know that a landlord’s insurance policy includes building, contents, and property coverage, as well as premises liability.
Premises liability coverage is necessary for you. For instance, a tenant who has injured himself during your stay could sue you for negligence. However, premises liability coverage can protect you from such accusations, and he may pay off your legal expenses for you as well.
Set Up A Home Maintenance Schedule
Consider setting up a maintenance schedule with your property manager to maintain your property overseas. Home maintenance schedules must include replacing water heaters, fixing wall cracks, cleaning the gutter, etc.
Pick A Preferred Payment Method
There are many payments involved in managing rental properties overseas, including mortgage, insurance, property manager fees, and more. To keep things organized and maintain the natural flow, you can consider picking a preferred payment method to avoid payment confusion.
It’s easy to lose track when managing all invoices, property taxes, etc. Therefore, arrange which payments your property manager will be responsible for and which ones you will be. With that, you’ll be putting off the pressure of bills and invoice collecting to your manager if that is permitted and agreed upon.
Owning a property is great, but managing it can be tricky if you live a thousand miles away. After all, repeatedly flying to deal with a toxic tenant or home maintenance is never a sound option.
However, following the above five tips can streamline the overseas property management process.