We work with a lot of investors from outside of Las Vegas, and it’s no wonder. This is a growing market, and homes in Las Vegas, North Las Vegas, and Henderson offer outstanding opportunities for investors who are looking for cash flow opportunities as well as long term gains.
If you’ve been thinking about buying property in Las Vegas, now is a good time to do it. Interest rates won’t be low for long, and there are still some great deals to be found in Clark County. It’s also a smart money decision. Investing in properties outside of your own market is a great way to diversify your portfolio and increase what you earn.
Out-of-state investors have a particular interest in accessing great local management. When you live hundreds or thousands of miles from your investments, you’ll want to make sure you’re working with a local property manager who can help you lease, manage, and maintain your investments.
When you’re thinking about adding a Las Vegas rental property to your portfolio, consider some of the unique challenges that out-of-state investors need to face. Make sure you’re prepared to take this step. You’ll need good technology, a great management partner, and a willingness to be as hands-off as possible.
Plan for Long Distance Communication With Las Vegas Property Managers
Long distance relationships require good communication. While all the day-to-day logistics involved in the management and maintenance of your investment property will be left to your property manager, you still want to be involved in some decision-making, and you always want to be informed about how your property is performing.
Communication is always a major concern for out-of-state owners and investors. This is understandable. You’re miles and miles away from your rental properties, but you want to know they’re safe, occupied, and in good condition. You can’t drive over there yourself to see how things look.
This is why it’s so important to work with a management company that’s experienced with owners who live out of state or even out of the country. We place a lot of value in communication, and we’re responsive when you call and send messages. We will include photos in all our inspection reports so you can get an accurate look at how your property is performing.
Look for a property management company that’s invested heavily in technology so you can be sure you’re in the loop during the tenant placement process and when major maintenance is needed. Most owners have online portals these days, and that’s where you’ll find invoices and lease documents. You can track rental payments and send messages. It’s a great way to stay in touch with your property without the burden of having to manage it from afar.
Talk about your communication expectations with your property manager. You’ll want to know how often you will hear from them, and in what capacity. Make sure they have all of your contact information and that they understand the best ways to reach you. Set up some boundaries that reflect when you should be contacted and why. You don’t need to know every time a tenant is a few days late with rent; but, you’ll want to be part of the discussion if eviction becomes necessary.
Preventative Maintenance and Protecting Your Property
Out-of-state investors are always going to rely on their Las Vegas property managers to maintain the condition of their properties. We’ll work closely with your tenants to ensure your asset is kept in good condition.
All property owners are concerned with the condition of their property. This impacts the value of your rental home and the experience your tenants are having. You’ll want to make sure your investment is protected. You can’t send vendors over to the home or talk to tenants about what’s really going on. Your property manager needs to be entrusted with the maintenance of your property. They should be working hard to respond to repairs that are needed and they should also be keeping your costs down.
As an investor who lives outside of Las Vegas, you’re likely to be concerned with property evaluations. Talk to your property manager about the frequency of those evaluations, and whether you’ll receive inspection reports with photos. You’ll want to make sure tenants are screened thoroughly. Good tenants always lead to a better maintained property and an all-around better rental experience.
Make a plan for preventative maintenance. When the HVAC is serviced every year and the roof is checked seasonally, you won’t have to worry as much about surprise repairs. At New West Property Management, we’re available for tenant emergencies. That’s something you should require as an out-of-state investor. You want to know your management partner can get there right away even when you cannot.
Vendor selection is also something you need to consider. Do you have your own list of preferred vendors in Las Vegas? If so, share those contacts with your management company. If you don’t live here, though, you’ll likely lean on the expertise and the relationships of your property manager. Make sure all vendors and contractors are:
You count on your property managers to put together a team of vendors who are responsive and affordable. Leverage those relationships from wherever you are.
Rent Payments and Rent Collection in Las Vegas
How do you make sure the rent is paid on time when you’re not in the same city as your tenants? You might not be in the same state. Or even the same country.
Getting paid on time is important to all rental property owners, of course. But when you’re outside of the immediate area, you want to know that there’s a policy in place to ensure rent is collected on time. You want to know that tenants are being screened to ensure they have the resources and the motivation to pay on time. Late rental payments can throw your own finances into flux. Rent that isn’t paid at all can turn into a major problem that’s hard to manage from so far away.
Talk to your property managers about their rent collection policy. Ask about the consequences of late rent and what they do to prevent eviction. Find out if online payments are accepted and who keeps the late fee if one is charged.
When you’re living outside of Las Vegas, you cannot serve a notice or file a lawsuit for eviction. Make sure you are working with a property management company that has a process in place for on-time rent collection and if necessary, eviction.
It’s also important to find out when you get paid. After the management company collects rent from your tenants, how long do you wait until those funds are deposited? Make sure you can rely on being paid on time every month.
Las Vegas Tenants: Reducing Vacancy and Turnover
Keeping your property occupied is always a concern, but when you’re outside of the area, it seems to take on a new urgency. Vacant properties are not only losing money, they’re also a potential target for criminals who see an unoccupied home as an opportunity. You’ve likely heard horror stories about unoccupied rental homes becoming a place where squatters take up residence or thieves make off with copper pipes and appliances.
An out-of-state owner will want to know their rental property is being protected even while it’s vacant. This might mean an additional security system, upgraded exterior lighting, and the occasional drive-by or visit from their Las Vegas property manager.
Avoiding vacancy needs to be a priority. Don’t hire a property manager to lease your out-of-state rental without understanding the marketing process, how properties are shown, and what the process is for moving a new tenant in.
Tenant retention and fast, effective leasing processes can also protect you from vacancy. When you cannot control the marketing, leasing, and screening process yourself, make sure you’re working with a management company with a reputation for keeping vacancy and turnover rates low.
Remaining Compliant with State, Local, and Federal Laws
Maybe you know all the necessary laws in your own state or city. But, what about Las Vegas? Every state has its own laws governing security deposits, rental increases, right of entry, and habitability. There are also federal laws to pay attention to, including the Fair Housing Act, Fair Credit Reporting Act, and the Americans with Disabilities Act.
Make sure your management team keeps up with all the new laws as well as the changes to existing laws. You don’t want to fall out of compliance, and mistakes are easy to make. A strong lease agreement is important to protect you and your property, and that lease needs to be legally compliant and enforceable.
When you’re working with the right Las Vegas property management company, there’s not too much to worry about as an out-of-state owner. We can help you feel secure with your investment property. 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, including Henderson and North Las Vegas.