The Zebra reports that individual investors owned 70% of rental properties in 2022.
As one of these landlords, you might own a property far from home. You may also invest in high-growth areas away from your home, like Memphis, TN.
The city attracts investors due to its strong job market and low cost of living. Population growth and business expansion drive demand for rentals.
You may become an absentee landlord due to relocation, inheritance, or multiple property ownership. Managing rentals from a distance comes with challenges. Late payments, maintenance issues, and tenant disputes can be harder to handle.
What can you do to overcome these struggles? Here’s how to excel as an absentee landlord in Memphis, TN.
Automate Rent Collection
Handling rent payments from a distance can be stressful. Late or missed payments hurt cash flow. Automate collections to make payments easy for tenants and consistent for you.
Use online payment systems that allow automatic transfers and track payments. A clear process reduces confusion and keeps income steady.
Set firm rules on:
- Due dates
- Late fees
- Payment methods
- Grace periods
- Consequences for missed payments
Automatic reminders help tenants stay on schedule. Reliable rent collection is key to remote property management.
Offer multiple rent payment options to avoid delays. Some tenants prefer bank transfers, while others use online wallets. A smooth system keeps rent flowing without issues.
Encourage Long-Term Tenants
Frequent tenant turnover leads to lost income and extra costs. Finding new renters takes time and effort. Vacant units mean missed rent and added expenses for advertising and screening.
High turnover also creates uncertainty in your rental income. Encourage tenants to stay by offering lease renewal incentives.
A small discount on rent or a gift card can make a difference. Check-in with tenants before their lease ends.
Let them know you value them and would like them to stay. A stable tenant saves you time and money.
Long-term renters reduce vacancy rates and keep rental income steady. Treating tenants well motivates them to renew their lease.
Set Clear Lease Terms
A strong lease prevents disputes. It sets clear expectations and protects both you and your tenant. A well-written lease helps avoid misunderstandings and legal trouble.
Review it with a property management expert to ensure it follows local laws. Outline rules on:
- Rent payments
- Maintenance responsibilities
- Tenant duties
- Pets
- Subleasing
- Noise limits
- Property use
Explain each rule in simple terms. Make sure tenants understand their responsibilities before signing. A detailed lease supports successful rental strategies by keeping everything organized.
Put all agreements in writing, including security deposits and lease renewal terms. A signed lease gives you legal protection if issues arise. Update the lease as needed to reflect changing laws or policies.
Build Positive Tenant Relationships
Good communication prevents misunderstandings and builds trust. Tenants feel valued when their concerns are heard. Responding quickly shows you care about their comfort and well-being.
Use email, phone calls, or messaging apps to stay in touch. A dedicated communication platform makes it easier to track conversations. Let tenants know the best way to reach you and when to expect a response.
If you’re unavailable, have someone handle messages on your behalf. A property manager or assistant can step in when needed. Delayed responses can frustrate tenants and lead to bigger issues.
A positive relationship encourages tenants to care for the property and pay rent on time. Clear communication creates a smooth rental experience for both you and your tenants.
Plan for Vacancies
One big challenge of owning properties miles away is dealing with vacant units. A rental without tenants means lost income. You still need to pay for:
- Mortgage
- Taxes
- Upkeep
- Utilities
- Insurance
A long vacancy hurts your cash flow and lowers your property’s value over time. Finding tenants can be hard, especially in a competitive market. Without the right strategy, your unit may sit empty for months.
Too many vacancies make real estate investment in Memphis less profitable. To overcome this, market your property before a lease ends.
Offer incentives like a discounted first month’s rent. A strong marketing plan helps fill vacancies faster.
Tenant placement services can also help. Reedy & Company offers expert services to find tenants fast.
Our team knows how to market rentals and screen applicants. With our help, you can keep your unit occupied and your investment secure.
Build a Reliable Local Team
Getting a call about a broken sink or leaking roof can be stressful. As an absentee landlord, handling repairs from miles away is tough. Finding contractors in an unfamiliar area takes time and effort.
You may end up hiring someone unreliable who does poor work. Poor repairs lead to more problems and unhappy tenants.
A reliable local team makes property management easier. They handle issues quickly and keep your rental in good shape. Your team may include:
- Property Manager
- Plumber
- Electrician
- Handyman
- Attorney
- Landscaper
- Cleaning service
Each person plays a role in keeping your property running smoothly. A good team prevents small issues from turning into costly repairs.
They also help with key landlord responsibilities like legal compliance and tenant management. A trusted team saves you time and protects your investment.
Invest in Preventive Maintenance
Ignoring minor property problems can lead to costly repairs. A leaking pipe may cause water damage. A clogged gutter can weaken the roof.
Regular upkeep helps you catch issues early and avoid significant expenses. Schedule routine inspections to check HVAC, plumbing, and roofing.
Look for signs of wear before they turn into bigger problems. A well-maintained property attracts responsible tenants and keeps them satisfied. Happy tenants stay longer, reducing turnover costs.
A proactive maintenance plan makes remote property management easier. It ensures your rental stays in good condition even when you’re far away. Preventative care also lowers the risk of emergency repairs, saving you time and money.
Use Smart Technology for Remote Monitoring
Managing a property from far away can feel stressful. You can’t check on things in person. Problems may go unnoticed until they become expensive repairs.
Technology helps you stay in control no matter where you are. Smart tools make remote management easier. Install:
- Smart locks for keyless entry
- Security cameras for property safety
- Leak detectors to prevent water damage
- Online portals for rent payments and maintenance requests
These tools improve security and keep you informed. Tenants also benefit from easy access and faster problem-solving. Simple upgrades can prevent major issues and reduce stress.
Smart technology is among the property management tips that can give you peace of mind. It keeps your rental running smoothly.
Screen Tenants Thoroughly
Dealing with difficult tenants when you’re out of town can be challenging. Problem tenants may damage property, miss rent, or disturb neighbors.
Handling these issues from miles away takes time and effort. The best strategy is to avoid bad tenants from the start.
A strong screening process helps you find responsible renters. It reduces the risk of evictions, property damage, and lost income. Proper screening makes remote property management easier and more reliable.
Screen tenants by:
- Running background checks
- Verifying income and employment
- Checking rental history
- Contacting past landlords
Look for tenants who pay on time and follow the lease rules. A detailed screening process protects your investment and keeps your property in good hands.
Stay Updated With Market Trends
Rental markets change, and staying informed helps you make smart decisions. Memphis rent prices go up and down based on demand.
Setting the rent too high can drive tenants away. Pricing too low may hurt your profits.
Check local news sources and real estate websites for market updates. Follow Memphis housing reports and rental listings.
Join landlord groups on social media to hear about trends. Watching market changes helps you adjust rent prices and attract tenants.
Local laws also change, affecting landlord rights and tenant protections. Stay updated on rental laws to avoid legal trouble.
Read City Council updates and follow property management blogs. If unsure, consult a local real estate attorney.
Economic shifts can affect tenant demand. A major employer leaving town may lower demand. A new business hub can increase rental interest.
Use news updates to plan and protect your investment. Staying informed helps you adjust your strategy and maximize returns.
Have a 24/7 Emergency Contact
Emergencies can happen anytime. A burst pipe or power outage needs immediate attention. Delayed responses can cause costly damage and put tenants at risk.
A 24/7 emergency contact ensures quick action. Tenants need someone to call when urgent issues arise. If you manage the property yourself, handling late-night calls can be stressful.
If you don’t have a property manager, hire a reliable contractor for after-hours emergencies. Build a list of trusted professionals, including plumbers, electricians, and HVAC technicians.
Provide tenants with clear instructions on who to contact in an emergency. Make sure they understand what qualifies as urgent.
Review your lease to clarify emergency responsibilities. Set clear guidelines on what repairs you handle. A strong plan ensures smooth remote property management and fewer tenant complaints.
Get Proper Insurance
Property owners face different risks, such as:
- Fire and natural disasters
- Theft and vandalism
- Tenant-caused damage
- Liability claims from injuries
- Loss of rental income
Being miles away from your property makes these risks harder to manage. You may overlook minor issues before they become costly problems. Insurance helps protect your investment from financial losses.
Landlord Insurance (Basic Coverage)
Landlord insurance covers rental-specific risks. Standard homeowner’s insurance may not protect you if tenants cause damage. The policy helps cover repairs from fire, storms, or vandalism.
It may also cover legal fees if a tenant sues you. Some policies include medical coverage for tenant injuries. Choosing the right plan reduces financial risks.
Property Insurance (Building and Structure)
Property insurance protects the physical structure of your rental. It covers damage from fires, storms, and other disasters. Some policies include coverage for attached structures like garages.
Repairs can be expensive, so having proper coverage is important. Read the policy details to find out what is covered.
Liability Insurance
Liability insurance protects you if someone gets injured on your property. A tenant or visitor may trip on broken stairs and sue you. The insurance covers medical bills and legal costs.
It also protects against accidental property damage caused by you or a contractor. Without it, you may face expensive lawsuits.
Loss of Rental Income Insurance
If a covered event makes your property unlivable, this insurance replaces lost rent. Fires, floods, or major repairs can force tenants to leave. Lost income can hurt your cash flow.
The policy helps cover expenses until the unit is rentable again. It provides financial security during unexpected vacancies.
Worker’s Compensation Insurance
If you hire employees for maintenance or property management, you may need worker’s compensation. It covers medical costs if a worker gets injured on the job.
It also helps with lost wages during recovery. Some states require landlords to carry this insurance. Check local laws to stay compliant.
Rent Guarantee Insurance
Some tenants fail to pay rent on time. Rent guarantee insurance protects against non-payment. The policy covers missed rent for a set period.
It helps maintain a steady income even when a tenant defaults. This coverage reduces financial stress and protects your investment.
Have an Eviction Plan
Evictions are brutal but sometimes necessary. Being far away makes the process harder. You can’t check on the situation in person or attend court hearings easily.
Delays can lead to lost rent and property damage. If a tenant stops paying or breaks the lease, act fast. Know Memphis eviction laws to follow proper procedures.
Missing a legal step can extend the process and cost you more money. A property manager or attorney can handle various legal steps on your behalf.
They ensure paperwork is correct and deadlines are met. A clear plan saves time and prevents lost income. Having support makes remote property management easier.
Expert Tips for an Absentee Landlord
Managing rentals from afar comes with challenges. An absentee landlord often needs to stay organized to succeed. Strong systems for rent collection, maintenance, and tenant screening make a big difference.
A reliable local team helps handle issues fast. Proper insurance and legal knowledge protect your investment.
Trust Reedy & Company for expert property management. We manage over 3,500 Memphis rentals and have been helping property owners since 2002. Contact us today!
