Being a long-distance landlord presents unique challenges, but with the right strategies, it can be a successful and rewarding venture.

What Does Being a Long-Distance Landlord Mean?

Being a long-distance landlord refers to owning and managing rental properties that are located in a different city, state, or even country from where the landlord resides. This situation often arises when a property owner moves away from an area but chooses to retain and rent out their property instead of selling it.

It can also occur when an investor deliberately chooses to purchase rental properties in a different location, often due to more favorable market conditions, better returns on investment, or diversification of assets.

Benefits of Investing in Rental Properties Away From Your Home City or State

Investing in rental properties outside of one’s home city or state can offer several advantages. Here are some of the key benefits:

  • Diversification of Investment Portfolio: Investing in different geographical locations can spread risk. If one market experiences a downturn, your investment in another, more stable market can offset potential losses.
  • Access to More Lucrative Markets: Your local real estate market might not always offer the best investment opportunities. Other cities or states may have higher rental yields, better appreciation potential, or a more robust rental demand.

  • Taking Advantage of Market Conditions: Some regions may offer lower property prices, higher rent-to-price ratios, or be in an early stage of growth. By investing outside your local area, you can capitalize on these favorable market conditions.
  • Tax Benefits: Investing in properties out of state may offer unique tax advantages. Different states have varying tax laws, and some may be more favorable for property investors.
  • Learning and Growth Opportunities: Managing properties in a new location can be a learning experience, offering insights into different real estate markets, tenant demographics, and management challenges.
  • Potential for Passive Income: With the right management strategies, such as hiring a property management company, long-distance landlording can become a source of passive income, allowing you to earn without the need for daily involvement.
  • Building a National Network: Investing in different locations allows you to build a network of contacts, including real estate professionals, investors, and service providers across various markets.
  • Personal Flexibility: Owning properties in different areas can offer personal flexibility. For instance, if you plan to move or retire in a different state, owning a property there in advance can be advantageous.
  • Enhanced Market Knowledge: Managing properties in various locations can enhance your understanding of different real estate markets, making you a more knowledgeable and versatile investor.

    Tips on How to Be a Long-distance Landlord

    Consider the following tips if you plan to invest outside of your home city or state:

Choosing Tenants

  • Thorough Screening: The success of remote landlording heavily relies on the quality of tenants. Rigorous screening, including credit and background checks, is essential.

  • Screening Services: Utilize high-quality tenant screening services to filter applicants and find suitable tenants for your properties.

Communication and Management

  • Open Communication: Establish clear and consistent tenant communication. Encourage them to report issues promptly and maintain regular check-ins.
  • Property Management: Consider hiring a local property manager to handle day-to-day tasks, including marketing the property, conducting tenant screenings, preparing lease agreements, and collecting rent.

Local Assistance and Connections

  • Trusted Local Contacts: Have reliable people nearby, like friends or property management services, to assist in emergencies and conduct routine checks.
  • Network of Vendors: Build a network of vetted local vendors for maintenance and repair needs.

Property Oversight

  • Regular Inspections: Visit your property at least once a year for inspections and to ensure tenant satisfaction. These visits can be tax-deductible.
  • Understanding Local Dynamics: Stay informed about the local market, including government policies, demographic changes, and rental rates, to remain competitive.

Additional Tips

  • Local Community Engagement: Get to know neighbors and community members near your rental property. They can be valuable sources of information and assistance.
  • Stay Informed: Familiarize yourself with the state and local laws governing rental properties in the area where your property is located.

  • Automate Payments: Set up an online system for rent collection to streamline the process and ensure timely payments.

How Can a Professional Property Management Help?

A professional property management company like American Dream Realty and Management can be an invaluable asset for long-distance landlords, offering a range of services that facilitate efficient and effective property management.

Here are several ways in which a property management company can assist:

  • Tenant Screening and Leasing: They ensure reliable tenants through thorough screenings and manage all leasing activities.
  • Rent Collection and Financial Reporting: They handle rent collection, payment issues, and provide detailed financial reports.
  • Maintenance Coordination: Property managers oversee routine maintenance, emergency repairs, and conduct regular inspections.
  • Legal Compliance: They stay updated on local laws, handle legal disputes, and reduce legal risks for landlords.
  • Tenant Communication: Serving as the main contact, they address tenant queries and complaints, maintaining a positive relationship.
  • Market Insight: They provide knowledge of local rental markets, advising on competitive rents and property improvements.

  • Emergency Response: They offer 24/7 services for urgent property issues, ensuring quick resolution.


Being a successful long-distance landlord requires a combination of careful planning and building a strong support system. By following the tips above, landlords can manage their out-of-state investments efficiently and profitably.

Hiring a professional property management company can significantly ease the burden of managing a rental property from afar. It offers peace of mind knowing that the property is in capable hands, while also potentially increasing the profitability and longevity of the investment.

Contact American Dream Realty and Management if you need help, and we’ll be happy to help you.