Long Distant Landlording Concern

[Dave Hounddriver]

Being a landlord from thousands of miles away is "impossible"  However, being a owner of a property where you have contracted the landlord duties to a quality property management company is doable.

 

Have you done it?

 

When I tried it the very good management company instructed me to personally handle any problems which were going to cost a lot of money.  The choice was:  "Your tenant has moved and left a lot of repairs to be done before we can rent it again.  If you want us to handle it then send us (blank check) and we take care of it.  We realize that is a lot of money and we recommend that our clients take care of it themselves when the repairs are of this magnitude"..  This happened twice, fortunately while I was still in the same country and able to take care of it.  

 

If you are leaving the country and you have a good management company AND a good friend in a repair and reno contracting company AND deep pockets for the unexpected expenditures then you may be OK.

[sonjack2847]

I caught my reputable company out as they had not inspected my property and there was  some damage but I had to pay and it took 2+ years to get them to pay something towards it. I think had I been there it may have been a lot easier to get them to pay.There is no easy answer to renting whilst abroad.

[PaulB]

I too looked into the Property Market as a potential investment source and income upon retirement. The problem I found was that after costs the income is very small. If you get a good expat you might get more but if not then you will perhaps pay for your beer for a month but not a lot else. I think there are better returns for your buck in the Philippines.

[bows00]

After reviewing your feedback, I got to doing more thinking about the subject...

 

Due to the very high cost of real estate in Hawaii (where a decent small 1 bedroom condo will set you back around $300,000 US), the Return On Investment (ROI) from rental income is about 3 to 4% per year.  I am confident I could achieve those returns safely in a well diversified portfolio without the hassle and headaches that come from land lording.  The long distance factor is definitely a deal breaker.