Managing an interstate investment is often seen as a daunting challenge, but the reality is that with the right approach, education, knowledge and support, managing a property interstate is much easier than people think. Even better, it opens up a world of opportunities that might not be available if you stick to investing in your local market.
Why Managing an Interstate Property Isn’t as Hard as It Seems
For many investors, the idea of buying property outside their local area feels intimidating. They worry that being far away from the property means they’ll have to be more hands-on, or that something important could go wrong. But the truth is, investing in an interstate property is not about “seeing and feeling” the property in person for it to be a good investment. In fact, focusing only on your backyard often limits your growth potential. It’s all about the data, and if the numbers point to growth interstate, that’s where the smart money goes.
The Role of a Local Property Manager
Many investors underestimate just how much a qualified/experienced property manager can do. You don’t need to pay more for interstate management, and they can handle nearly every aspect of the property’s day-to-day care. Here’s a closer look at what a property manager can do for you:
- Organizing and Supervising Tradespeople: Property managers have local connections and can find reliable tradespeople to handle any repairs or maintenance that arise. They oversee the work, check on its progress, and make sure it’s completed to a high standard.
- Inspections and Reporting: Property managers conduct routine inspections on your behalf, ensuring the property is well-maintained and that tenants are meeting their obligations. Even better, they often offer video inspections, so you can see the property’s condition firsthand without having to be there.
- Tenant Management: From screening potential tenants to handling rent collection, lease renewals, and disputes, property managers take care of all tenant interactions. This saves you the hassle of dealing with tenant issues remotely.
- Legal Compliance: Each state has different property laws, and your property manager stays up to date on all relevant regulations, ensuring that your property is always in compliance with local rules.
This allows you to invest interstate with confidence, knowing that your property is in good hands, and you’re not missing out on anything just because you’re not physically present.
It’s Not Always About Buying in Your Own Backyard
A common misconception is that for an investment to be successful, you need to physically inspect the property or “feel it out” to make sure it’s right. While seeing a property in person might bring peace of mind, it doesn’t necessarily lead to the best financial decisions. In fact, limiting your investments to your local market often means missing out on better opportunities elsewhere.
By expanding your search interstate, you can target high-growth markets that have better potential for capital growth and rental returns. The key here is to use data to guide your decision, rather than emotions or proximity. Smart investors follow the data—whether it points to their local market or one on the other side of the country.
Managing Tasks Beyond a Property Manager’s Scope
While property managers are invaluable for day-to-day operations, there are some tasks that they might not handle directly, such as detailed building inspections or renovations. But that doesn’t mean you’re on your own.
Building Inspectors: These professionals fill in the gaps by conducting comprehensive inspections, especially before purchasing a property or during major renovations. They assess the structural integrity, pest issues, and any potential long-term risks that a regular inspection may not cover. This ensures that you know exactly what you’re investing in, even if you can’t physically be there to inspect it yourself. In fact, getting an external building and pest inspection can protect you from costly mistakes and provide peace of mind before finalizing your purchase.
Handling Renovations Remotely: If you’re planning to renovate, don’t let distance stop you. Property managers can help organize from smaller renovations, all the way to larger projects. Thanks to technology, you can manage every aspect of a renovation remotely, from approving designs to monitoring progress via video calls. Many contractors are used to working with remote investors and provide detailed progress reports, keeping you updated without you having to be there.
Renovations? No Problem
One concern many investors have when considering interstate properties is managing renovations from afar. While this might seem like a major obstacle, it’s actually quite manageable. Even large-scale renovations can be organized remotely with the help of local contractors and project managers. Property managers or building inspectors can oversee the progress, or you can hire a project management professional to keep things on track. Through online tools and video conferencing, it’s easy to review designs, approve work, and even conduct site visits virtually. This means you can add value to your property through renovations without having to set foot in the state.
The Importance of Data in Interstate Investing
Whether you’re investing locally or interstate, the key to success is relying on data rather than guesswork. Investors who focus solely on properties close to home might miss out on better opportunities elsewhere. By analyzing market data like population growth, rental demand, vacancy rates, and infrastructure development, you can make smarter investment decisions—regardless of location.
Data-driven investing reduces risk by showing you which markets are primed for growth and which ones are overvalued. It’s not about buying what’s familiar; it’s about buying what offers the best returns.
The Bottom Line: Invest Smarter, Not Harder
At the end of the day, managing an interstate property isn’t as difficult or risky as it might seem. With the right property manager and local professionals in place, you can confidently invest in high-growth markets that offer better long-term potential than your local area. Leveraging data, technology, and experienced professionals allows you to grow your portfolio without being limited by geography.
