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Not every market has accessible price points or great cash flow. If you’re living in a major coastal real estate market, chances are it’s hard enough for you to buy your primary residence, let alone dream of owning a portfolio of investment properties. If this is you, don’t worry. You’re like so many other investors who finally realized that buying a rental property in their city was both unobtainable and not the best investment choice. That’s why we set up quality property management for absentee owners in Toledo.

The biggest concern of out-of-state real estate investors considering the Toledo real estate market is that they aren’t close enough to physically visit their property regularly. The distance makes finding tenants, managing maintenance requests, and overseeing the property’s condition challenging, if not impossible. So, instead, many potential remote investors eyeball profitable markets like Toledo but choose not to invest. 

We don’t want that for you. Everyone should make it a goal to own real estate, whether to build a portfolio of passive income or to supplement their retirement. Real estate is the most proven method for generating long-term wealth. Toledo is in the middle of a real estate boom, with home prices increasing and strong cash returns for buyers. This article discusses the benefits of professional property management for out-of-state investors.

Out-of-State Investment in Toledo Benefits

The Toledo real estate market has become the hottest market in the nation due to its affordability, cash flow, and median price growth projections. It’s a market that gives investors everything they are searching for at an accessible entry point. However, with a population of less than 300,000, most interested real estate investors don’t live in Toledo or Ohio.

Remote real estate investment in Toledo, OH, is possible, but it requires either more work or engaging professional property managers in Toledo.

Why should you become a real estate investor in Toledo?

  • Affordability: Houses in Toledo’s real estate market are more affordable than in many other U.S. cities. Lower acquisition costs enable investors to enter the market with less capital and potentially acquire multiple properties.
  • High Cap Rates & Favorable Rental Returns: In Toledo, cash flow is king, and even remote real estate investors get much higher cap rates than competing metros. Investors get a more quantifiable return on investment than speculative markets.  
  • Market Stability: Toledo already hit rock bottom a few decades ago and has been climbing upwards ever since. The local economy is diversified with a strong industrial base, healthcare sector, and educational institutions.
  • Diverse Asset Options: Investors can choose from a variety of property types in Toledo, including single-family homes, multifamily units, commercial properties, and industrial spaces. 
  • Potential for Appreciation: Demand for homes in Toledo has resulted in a real estate boom, with the median home value projected to increase by 8.3% in 2024.

How Do You Self-Manage Your Rental Property From Out-of-State?

Managing a rental property from another state isn’t easy, but it is possible, presenting a unique set of challenges, from finding reliable tenants to ensuring the property is well-maintained. However, with the right strategies, partnerships, and tools, landlords can oversee their properties from afar. 

Leverage Technology

Now that the world has become increasingly digital, technology is a remote landlord’s best friend. Use property management software to streamline tasks such as collecting rent, tracking expenses, receiving repair requests, and managing lease agreements. Pick a management software that allows tenants to submit maintenance requests online. While good software comes at a cost, its organizational benefits outweigh the expense. 

Set up automatic systems where possible. Automated reminders for lease renewals, rent due dates, and maintenance checks can save time and help keep everything on track. Automation tools not only simplify processes but also reduce the risk of human error.

Build a Network of Reliable Contractors

Additionally, remote property management isn’t possible without a trusted network of contractors and service providers. Every property, whether new or old, will eventually have an issue. You need to be proactive when establishing relationships with maintenance professionals.

Effective Communication with Tenants

Maintain open lines of communication with your tenants. Ensure they can reach you by phone, email, or through a tenant portal. Quick and responsive communication can significantly enhance tenant satisfaction and help address any issues before they escalate.

Stay Informed of Local Laws

As a landlord, you are responsible for knowing and following the legal regulations that govern rental properties. Stay informed about the local regulations that affect your property. This includes understanding rights and responsibilities regarding security deposits, eviction procedures, and maintenance obligations. Keeping abreast of these laws can help you manage your property legally and effectively.

Visit the Property

Even though you live far away, you must plan regular (at least twice a year) visits to the property to inspect its condition and identify any issues. Tenants cannot be relied on to report deferred maintenance problems. Regular inspections are crucial to ensure that the property remains in good condition and that tenants comply with their lease terms. Since visiting the property frequently may not be feasible, consider hiring a local service to perform quarterly or semi-annual inspections.

While it is possible to self-manage your remote investment properties, it’s not recommended. The downside of managing Toledo properties remotely is that you can’t do it efficiently, which takes more money and time. 

What Do Property Managers Do?

Not every property management service is the same. In general, property managers are responsible for finding tenants and the general regular management requirements of the portfolio. Property management companies play a crucial role for both local and remote real estate investors. They make it possible to own investment property without taking on a second job. Managing real estate investment property requires finding tenants, collecting rent, property maintenance, lease renewal and negotiation, and more. 

Even local landlords who try to take this on themselves while also working a full-time job end up overwhelmed. Engaging a professional property management company gives property owners the time to focus on their careers and growing their portfolios. Furthermore, the best property management companies end up saving landlords money in the long by:

  • Identifying red flags through tenant screenings.
  • Perform background and credit checks.
  • Efficient and cost-effective maintenance.
  • Maintaining low vacancy rates with high tenant retention. 
  • Establish rental rate pricing for strong cash flow.
  • Legal compliance. 

The Benefits of a Property Management Company for Remote Investors

Great property management services are a game-changer for real estate investors who are local, but even more so for those who are remote. If you don’t live in the city you invest in, it makes it difficult to manage any residential asset well. The benefits of a property management company for remote investors go beyond just having boots on the ground and someone to manage property maintenance.

Local Expertise & Market Knowledge

Remote investors often lack intimate knowledge of the local market dynamics that can critically impact the success of their investment. The truth about any real estate market is that you can’t truly know it until you have lived there and become a part of the community. Property owners can spend as much time as they want visiting or exploring statistics online, but nothing replaces a local’s experience. Property managers bridge this gap by providing expert local insights into micro-markets and communities. They provided added value by pointing investors to the best neighborhoods for rental properties or by connecting them with their professional network. 

Effective Marketing and Tenant Placement

A high vacancy rate costs property owners money; filling vacancies quickly with reliable tenants is vital to maintaining your rental property’s profitability. Property managers have the tools and experience to market your property effectively, getting it in front of as many potential tenants as possible. Your property management company should use both online and local resources to attract a wide pool of applicants. 

Property management services employ rigorous and systematic tenant screening processes to ensure that potential tenants are thoroughly vetted. By finding qualified tenants and having a keen eye for red flags, property managers reduce the risk of rent defaults, property damage, and evictions, which are both costly and time-consuming.

Routine Inspections and Maintenance

Regular property inspections are crucial to ensure that the property is adequately maintained and that tenants comply with the lease terms. Property managers coordinate these inspections and promptly address any issues, which is particularly beneficial for remote investors who cannot regularly visit the property.

Access to Local Professional Networks

“Your network is your net worth,” and that saying rings especially true in real estate. Most remote investors don’t have strong relationships with local service providers, which can lead to inefficiencies every step of the way. Property management companies established repetitive working relationships with service providers, which means they get discounts on maintenance costs and even larger upgrade projects. Contractors like to work with businesses they have an established relationship with; working with a property manager means you benefit from their professional and sometimes even personal community network. 

Furthermore, property management companies already have a large pool of active tenants. Some of these tenants may be looking to upgrade or change neighborhoods. When prospective tenants your property manager has previously worked with apply for your rental property, your manager already knows their rental history, expediting the tenant screening process. 

Landlord-tenant laws can be complex and change based on the jurisdiction. For example, the rules governing the Toledo real estate market differ from those of New York or Chicago. The property owner is responsible for knowing and following all rules regarding the Fair Housing Act, rent collection, deposit limits, late fees, accessibility, and eviction. 

Property managers bridge the knowledge gap and ensure your rental property and lease structure comply with all local, state, and federal regulations. Your property manager protects your investment property and portfolio by keeping you compliant.

Optimized Rent Collection Processes

Stable rent collection is crucial for maintaining cash flow. Having systems and processes for online rent payments makes it easier for tenants to stay on top of their rent and streamline financial reporting.

While digital platforms allow property owners to set up an online rent payment on their own, a management company has access to more detailed products and systems to collect rent from delinquent tenants. 

Tenant Retention Strategies

Tenants are more than just occupants or sources of income; they need to be viewed as partners in your investment. When you own investment properties, you are providing a housing service. In a real estate market where rental rates have been historically stable (and not increasing), retaining tenants has been one of the most effective ways of maintaining strong cash flow. 

When tenants turnover, it creates a cost for investors. Often, they need to repaint walls, clean carpets, or even make more costly upgrades. Furthermore, finding a new tenant and the tenant screening process takes time and costs money. In Toledo, tenant turnover can easily cost several thousand dollars once all factors are considered. Therefore, the best property management companies know how important it is to keep tenants happy and foster long tenancies. They establish good relationships with tenants by handling their concerns promptly and ensuring they have a positive experience in their homes. 

Hands-Free Operational Management

The true value of a property management company is that it allows real estate investors to be fully passive. When you trust your property manager, you can let go of micro-managing your assets and allow them to handle tenant inquiries, emergencies, and regular maintenance. For remote investors, this is invaluable as it eliminates the need for constant travel or personal involvement in operational issues.

Become a Toledo Remote Real Estate Investor

Toledo has emerged as one of the nation’s top real estate investment locations due to its affordability, robust rental yields, and strong economy that fuels real estate demand. This combination makes it an enticing option for investors looking to get more value for their money, far from the inflated prices of coastal cities.

Oz Realty has been a trusted partner for remote investors from the outset. Our deep understanding of the Toledo market and customer service has led to over 90% of our investors feeling no need to even visit Toledo. We handle everything from tenant placement to maintenance, all while ensuring compliance with local regulations and optimizing your investment returns.

Ready to make Toledo your next investment destination or enhance your existing portfolio? Connect with Oz Realty, Toledo’s number-one property management company. Experience how our personalized, comprehensive management services can simplify your investment process, allowing you to enjoy the benefits of real estate investment without the daily responsibilities.

About the Author

Kelsey Heath

Kelsey Heath is a real estate content specialist with an extensive background in residential, industrial, and commercial property. She has been involved in the industry for a decade as a professional and personal investor, gaining a deep understanding of the market and trends. With a passion for written communication, Kelsey loves helping people understand the sometimes-complicated concepts behind real estate and is now a sought-out guest and ghostwriter.

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