Many people have come to us with questions about buying an investment property close to where they live. Is it the right call? Is it better to have some distance between yourself and your tenants?
In our opinion, it’s important to be relatively close to the property you own, because it will give you quick access whenever you’re needed. By “relatively close,” we don’t mean down the block: a 20-30 minute drive should be reasonable. So, in case of an emergency like a burst pipe or HVAC issues, you can be there within a half hour and solve the problem immediately.
That being said, living next door or super close by might be overkill – especially if the tenants know exactly where you live. That opens the door for them to come to see you whenever they have any sort of issue, whether it’s bickering with a neighbour or having a burnt-out lightbulb.
That’s something that can be dealt with via email as opposed to a knock on the door, but proximity can make in-person resolutions tempting. If you do live very close to your investment property, we recommend maintaining a healthy boundary and not giving out your exact address.
The other option that you have is to hire a property manager. That way, you completely remove yourself from the equation, and someone else will be tasked with handling any tenant issues that come up. It also means you don’t have to worry about how close or how far away you live.
A lot of people have started investing in other cities because they might see higher returns or better cash flow. In that case, you’re definitely going to need a property manager.
So, you just have to consider: does outsourcing work with your numbers? Does it fit within the scope of your investment? If yes, then by all means, hire someone to spearhead management.
Have more questions about best practices for property investors? We know the industry like the back of our hand. Reach out to our team anytime and we’ll be delighted to have a chat!