Investing in Las Vegas is a smart financial idea, even if you don’t live in the local market yourself. At New West Property Management, we work with investors from outside of the city, outside of the state, and even outside of the country. We also work with people who once lived in Las Vegas but moved out of the area and instead of selling their home, they’ve decided to rent it out. It’s easy to feel nervous about how tenants are going to treat your home. We help you feel better about it.
Investing in diverse geographical markets is easier than ever, thanks to technology and the growth of expert property management in local areas.
It’s easy, but it’s not completely without risk. When you’re not geographically close to your investment property, you need more than regular rental income and long term ROI. You also need peace of mind.
We don’t want you to hesitate. If you’re interested in buying Las Vegas investment properties, our job is to help you. Here are some of our best ideas for how to protect your out-of-state investment home.
Logistical Concerns for Out of State Investors
A lot of investors, particularly those who are new to real estate or buying an out-of-state property for the first time, wonder how it will work. How can they feel safe owning expensive assets that are hundreds or even thousands of miles away?
Here are some of the things most non-local investors tend to worry about, and some solutions for dealing with each of them.
1. Concern about Losing Money on Long Vacancies
Vacancies are expensive, and it can be frustrating to have your rental home left unoccupied for long stretches of time. Without the consistent rental income you expect, your entire financial picture is disrupted.
For out-of-state investors, the vacancy period can seem even more threatening. It’s not like you can be there to show the property, market it aggressively, or drum up interest among your own local network. Instead, you’ll have to rely on a local property manager. There’s not so much to worry about when you have a management professional who excels at:
- Understanding the local market in order to price your property effectively.
- Strategic rental property marketing
- Responsive tenant showings
- Clear application processes
- Efficient and complete tenant screening
Avoiding expensive vacancies and turnover will be important for any investor. For someone who rents out property in Las Vegas but doesn’t live there, it offers the additional peace of mind you need that your property is occupied and earning what it should.
Choose a management partner with a low vacancy rate and a high retention rate.
2. Unpaid or Late Rent
How can you collect late rent when you’re living thousands of miles from your rental home?
You’ll need to know your property manager has a reliable and consistent rent collection process in place. The rent you receive should also be timely. Talk to your property manager about when you can expect to see deposits. All of the rent collection and payment should be done electronically, especially when you’re out of state. Paper checks in the mail are unreliable; you’ll need online access to your rental payments.
If rent continues to be unpaid, make sure there’s a plan in place for collection and if necessary – eviction.
Hopefully, it won’t come to eviction. You’re also relying on your management company to conduct a thorough tenant screening. But you want to know you have a plan in place in case eviction does become necessary. Your property manager should understand all the local laws and the required steps as notices are served and court papers are filed.
3. Broken Lease Agreements
A lot of non-local landlords become overly concerned that their tenants will leave before the lease ends. Broken leases are expensive and frustrating. A local property manager needs to be prepared to enforce your lease agreement and hold your tenants accountable.
Make sure a security deposit is collected. Look for Las Vegas property managers who understand customer service and are willing to develop good tenant relationships. This will ensure your renters are more likely to fulfill the requirements of their lease agreement.
4. Property Damage
You will have to cover the cost of general wear and tear in your rental property after one tenant moves out and before another tenant moves in. When there’s damage to your property, however, your tenants can be held accountable.
But you’re not there to inspect the damage or gather quotes and estimates from vendors.
Again – you’ll need a solid Las Vegas property management partner.
You cannot go to the property and see the problems for yourself. So, property damage often feels worse than it is when you’re not actually there.
Protect your out-of-state investment property with a management team that’s excellent with documentation and able to work with tenants to avoid excessive property damage.
Protect Your Las Vegas Investment with Great Vendor Relationships
Unless you are planning to visit the area quite frequently, you cannot take care of repairs and maintenance at your Las Vegas rental property yourself.
That doesn’t mean you can’t have a reliable maintenance plan in place. You’ll need a reliable team of vendors who can handle these things for you. You’ll need to put together a preferred network of professionals, including:
- A general contractor.
- HVAC technicians.
You’ll need to rely on their fast service and high quality of work to respond to maintenance needs and help you prepare your property during turnovers.
Good vendors are hard to find, especially when your standards are high. With a Las Vegas property management partner, you’ll have a team already in place. Most management companies either have their own professionals in-house or have long-standing relationships with licensed and insured vendors who often provide the best and most competitive prices.
Stay Connected to the Las Vegas Rental Market
You may not be living in Las Vegas, but you need to keep in touch with the behavior of the rental market. You need to follow the trends and understand the tendencies of how investors, tenants, landlords, and industry professionals are making their moves.
This will help you protect your investment property because there will be fewer surprises.
Things change quickly, especially when we’re talking about rental values, market inventory, competing properties, fair housing laws, and leasing best practices. Even if you’re not here yourself, make sure you’re reading the news and staying up to date.
The market trends are especially important to out-of-state investors. You cannot accurately price your property, market it well, or make relevant upgrades and updates if you don’t know how the competition looks in your neighborhood or what tenants are looking for in their next rental home.
Partner with Professional Las Vegas Property Managers Before You Invest
Partner up with a professional Las Vegas property management company.
Local experts will do an excellent job of protecting your property.
They’ll respond to emergency and routine maintenance, make sure your rent is collected on time, and provide you with real-time information on how your property is performing. They’ll know the rental market well, helping you keep up with laws and trends. They can also respond to the needs and questions of your tenants and be available for anything your property needs.
Professional management will provide a lot of peace of mind. You won’t have to worry about vacancies or tenant placement. You’ll have experienced professionals who can provide maintenance, lease enforcement, and general guidance on the protection and promotion of your investment.
Two things are important in your relationship with your local property managers: Communication and Technology.
Good Property Managers Communicate Frequently with Out-of-State Investors
A great way to protect your rental property when you live out of the area is by communicating frequently and transparently with your property managers. Look for a company that provides an online portal for you to send messages, check statements, and access reports and other documentation. You’ll feel more connected to your property, and you won’t have to worry about what’s happening in your absence. And, if your property managers are communicating responsively and proactively with you, you’ll know they’re just as available to your tenants.
Work with Property Managers Who Leverage Technology
In addition to great property management, out-of-state investors also need reliable and accessible technology. Those online portals will allow for rent to be paid online, maintenance requests tracked and documented, and information easily and immediately shared.
You will want to make sure you can receive electronic rental payments through direct deposit. You’ll also want to make sure you can look at accounting statements and run reports online. Find out how you’ll be informed when a repair is needed, and how those invoices are paid.
With technology, you can track income and expenses, communicate with your property managers, and stay up to date on lease renewals, marketing strategies, and lease negotiations. It’s critical that you have access to good technology when you’re investing in properties from another state or another country. Communication will be important, and you don’t want to feel even further away from your investments.
We would love to talk more about our plan for protecting your Las Vegas investment property, even if you don’t live here in Las Vegas. Please contact us at New West Property Management. We’re passionate about the services and value we provide to the owners and investors who trust us with their properties. Our team expertly manages residential rental homes in Las Vegas and throughout Clark County, including Henderson and North Las Vegas.