Foreign Investors, Local Property Managers
Property management for foreign investors requires better technology and more trust than managing for local owners. When problems arise, as they surely will, remote owners need to know that managers will handle the situation completely with no supervision and little input.
We know from experience that these owners are looking for the income without the headaches. They are paying for it, so why shouldn’t they get it? Local owners frequently retain a semi-active role with the properties- approving tenants, vetting vendors, etc. Not so with remote owners. The distance between their home and investment can increase their feelings of unease. This also necessitates greater levels of trust and reliance. Property managers can either add to unease or dispel it.
The checklist when vetting a property manager for a foreign owner of local property revolves around technology and trust/accessibility.
Trust/Accessibility:
- Assurance that bids for projects, insurance, etc. Will be competitive
- Notification of Community changes (zoning, crime, etc.)
- Reliability that rents will be competitive
- Vacancies will be kept to a minimum
- Properties will be maintained according to owner’s standards.
Technology
- Online visibility of their accounts
- Access to security camera images
- Electronic fund transfer capability
- 24 hour access via an emergency phone line.
This list isn’t exhaustive. It’s a jumping off point. You may notice these requirements differ from the needs of local owners mainly in terms of trust and oversight due to the physical distance and infrequent access logistics.
Many owners look at New York property as a long term value investing play. They need to be kept abreast of changes at the local community board level and zoning board levels. If a property is rezoned, creating more FAR, owners need to know immediately. The same goes for bars, schools, and developments opening nearby.
Regarding technology, all worthwhile property management software these days allows online access for both tenants and owners. Additionally, it’s relatively inexpensive to purchase and install security cameras and hardware to monitor property remotely. The increased sense of awareness these investments offer can be worth far more than their cost to any investor.
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