Long-term rental property investing is an excellent way to diversify your investment portfolio, and protect it from stock market volatility. And one of the best places in California to invest with a long-term-hold mindset is San Diego, where rents are among the highest in the country and demand is strong. But what if you don’t live in this picturesque California rental market, with one of the most temperate climates in the world?
How can out-of-state investors protect their assets while living out of state? The short answer is: Hire a tech-enabled property management firm with local expertise.
Real Estate Appreciation Appeals to Remote Investors
Out-of-state investors are drawn to buying properties for either immediate yield or long-term appreciation. San Diego is a great market for long-term appreciation. According to Zillow, Q4 2018 year-over-year asking rents rose 3.4% to more $2,100 per month. Meanwhile, demand is expected to outstrip supply in 2019, based on data from the Q1 State of Mynd San Diego report. The region has the best supply/demand metrics in the entire country, the report states.
The chart below shows significant rental appreciation since 2013 in San Diego County:
CoStar forecasts that rents will climb steadily throughout 2019 in San Diego. As a matter of fact, “San Diego landlords have no objections to raising rents upwards of 20% when a unit turns over in light of tight vacancies and low turnover. New investors are most likely to push such rent increases to compensate for such high property taxes.”
Tech Blows the Case for Investing in Your Backyard Out of the Water
The common belief that you should own investment property near your personal residence so that you can keep an eye on it, oversee repairs and manage your tenants is outdated. In today’s world of iBuying and advancements in proptech, you no longer have to worry about being located near your property. The notion of real estate as a hyper-local business has been turned upside down since the arrival of online platforms like Roofstock and HomeUnion, according to TechCrunch.
Use a Property Management Expert to Oversee Your Out-of-State Investment
The same technology advancements that power e-commerce proptech platforms also enables great property management. Great property management makes out-of-state investing a reality. To ensure your piece of the California dream is managed as efficiently as possible, hire a property manager with decades of experience investing in and managing California rental properties, Mynd Property Management.
Handling Your Unique Challenges as a Remote Investor
Being an out-of-state investor presents a unique set of challenges that can be best handled by a property manager in San Diego. They include:
- Leasing up your units quickly
- Handling repairs and maintenance
- Understanding local laws
Leasing Up Your Units Quickly
If you’re out of state, how can you fill vacancies at your San Diego rental unit fast? You need an on-the-ground expert who understands the local market so that they can find the highest-quality tenants.
Mynd’s comprehensive leasing platform uses technology to market your units on more than 40 websites, all from the comfort of your own home. You don’t have to lift a finger. We do all the work to lease your units, which means we fill your vacancies in 16 days on average across our portfolio of AUM.
Handling Repairs and Maintenance
Mynd diagnoses maintenance issues at your property, using technology and doesn’t dispatch a field technician to complete the repair until it is clearly identified. This saves you money as a remote investor. In fact, we save our owners up to 20% on repairs and maintenance costs by operating this way.
Understanding Local Laws
California has some of the most complex rent regulations and landlord/tenant laws on the books. That’s why you, as an out-of-state investor, should hire a property manager or advisor with expertise on state and local rental regulations.
For instance, do you know if you’re within the law to evict a tenant who hasn’t paid rent in 30 days? Are you up-to-speed on current rental laws impacting San Diego? As a remote investor, the likely answer to these questions is no.
But Heather Jones, Regional Director of Mynd’s San Diego office knows the answers to all of these questions, and more. She has more than 17 years of property management experience in the region.
Make the Move Today, Without Lifting a Finger
Now that you can trust your valuable California investment with an expert even if you’re located in another time zone, you can focus on growing your California dream by purchasing more rental housing in San Diego and beyond.