Once you decide to expand your rental property portfolio, it's smart to diversify your portfolio to reduce risks. Market conditions are hard to anticipate, and if one property fails in a particular location, you can rely on another property to stay afloat.
Many landlords rely on this business strategy, but they will also tell you that it comes with challenges. Having an out-of-state property makes it difficult to be more hands-on, which means issues can go unnoticed and concerns won't be addressed as quickly.
The good news is that you can still be an effective landlord without spreading yourself thin, and here's how:
Key Highlights:
- Local support is essential. Hiring a property manager (typically 8–10% of monthly rent plus a leasing fee) or building a trusted network of local contractors is the most effective way to overcome the challenges of managing property from a distance.
- Compliance can't be skipped. Georgia has specific landlord-tenant regulations — including security deposit escrow rules for landlords with 10+ units — so out-of-state owners must stay current on state and local requirements.
- Screening protects your investment. Thorough tenant screening (credit checks, income verification, landlord references, criminal background checks) reduces the risk of lease violations, property damage, and costly evictions.
- Preventive maintenance saves money. Setting up a maintenance system with vetted local vendors and conducting regular inspections helps catch small issues before they become expensive emergencies.
- Technology and communication bridge the distance. Property management software automates rent collection and record-keeping, while clear, consistent communication channels with tenants help maintain strong relationships despite the physical gap.
1. Hire Boots on the Ground
Managing a rental property takes a lot of time and effort, and since you can't be in several places at once, hiring someone who can handle rental operations on your behalf can be a huge help. This is the biggest expense a remote landlord could have.
It usually costs around 8-10% of your monthly rent for management, and 50% of the first month's rent for a leasing fee. It can depend on the fee structure of the property manager you hire, so make sure you look for good property management companies to ensure that the payment is well worth it.
There's also the option of hiring your own employees to watch over your remote rental property, along with establishing a local network of contractors for emergency repairs. Ultimately, it's about hiring a trustworthy company or vendor with local expertise to ensure quality service and earn passive income.
2. Learn About Local Landlord-Tenant Laws
Just because you aren't operating within the state doesn't mean you don't have to abide by its laws. Landlord-tenant laws vary by state and locality, which means you need to do your due diligence to ensure legal compliance and avoid disputes and penalties.
Different states have specific security deposit regulations for landlords. For example, Georgia has a state law about security deposit handling stating that landlords who own more than 10 rental units or hire a third-party management company must place security deposits in a separate escrow account located in a Georgia bank or savings institution.
When in doubt, consult professionals to navigate the legal landscape of matters like eviction procedures, or hire local property managers who have the legal knowledge to ensure compliance.
3. Screen Your Tenants Thoroughly
A rigorous tenant screening process leads to more responsible tenants, which also means reducing eviction rates significantly. Property managers usually conduct credit and income verification to ensure that the potential tenant can pay rent on time, but using other criteria can provide you with better assurances of finding high-quality tenants.
As you know, it's not all about collecting rent payments. You have to make sure your tenants don't commit lease violations to protect your out-of-state investment and avoid property damage. It's also easier to foster a positive landlord-tenant relationship with reliable tenants. Use factors like landlord references and criminal background checks to make informed decisions.
4. Build a Maintenance System
A huge part of managing properties is handling maintenance requests, which can be challenging with an extensive real estate portfolio in multiple states. The best way to minimize maintenance issues is preventive maintenance, especially since it's cheaper than emergency repairs.
Regular property inspections also help maintain rental value by catching issues early. It will benefit you to build a network of local contractors and vendors for faster response to maintenance responsibilities. A good property manager would already have a vendor network you can take advantage of.
5. Use Property Management Software
If you don't want to hire a property manager, many out-of-state real estate investors use various tools for remote property management. Most dedicated digital tools have features that allow automated rent collection, maintenance coordination, generation of financial statements, digital lease signing, and more, depending on the product.
It can allow you to monitor multiple out-of-state rental properties as well, which means you have a centralized system to manage all the properties in your investment portfolio.
6. Understand the Local Market Trends
Doing your research helps you acquire the market knowledge needed to set optimal rental prices to attract tenants. Without crucial rental market insights, out-of-state landlords can misprice rentals and miss market fluctuations, leading to loss of rental income.
Consult real estate agents or property managers with local market knowledge to gain valuable information, especially since it's harder to keep your finger on the pulse when you're not on site. Determine whether there's strong rental demand or if you need to adjust your prices to attract quality tenants.
7. Establish Communication Channels
Being an out-of-state landlord can result in communication barriers that will affect tenant relations. Clearly outline communication channels in the lease agreement and regularly check in with your tenants to address concerns they might have.
You can even use tools for virtual meetings, whether it's for lease enforcement or hearing out issues. Even if you hire a property manager and they handle tenant issues well, it's still important for out-of-state landlords to build relationships with their residents.
Out-of-State Landlord FAQs
1. Is it realistic to manage a rental property in Columbus, GA from out of state?
Yes, though it requires more planning than managing a local property. Success typically depends on either hiring a property manager or building a dependable local network, along with using tools and systems that keep you informed without needing to be on-site.
2. How much does a property manager typically cost in this market?
Property management fees generally run around 8–10% of monthly rent, plus a leasing fee (often around 50% of the first month's rent) when a new tenant is placed. Exact pricing varies by company and service level.
3. What's the biggest risk of self-managing an out-of-state rental?
The main risks are slower response times to maintenance issues, difficulty verifying tenant claims or property conditions firsthand, and the potential for small problems to go unnoticed until they become costly. A strong local network or management software can help offset this.
Hiring the Right Property Manager
When you opt for a property manager instead of managing your remote rental properties by yourself, you need to make sure that they have the right expertise to conduct smooth rental operations. Ask whether they know the local laws, how they handle tenant dissatisfaction, what their maintenance procedures are, or how thorough they are with tenant screening.
Companies like Ten20 Property Management are knowledgeable about potential legal pitfalls and circumstances that can hurt your profitability. That is exactly what you need to be a stress-free property owner. By putting your property in the hands of local professionals in Columbus, GA, you can focus on more important matters.
Reach out to us, and let's come up with an arrangement that works for your business plan.
More Resources:
Ensuring Legal Compliance as an Out-of-State Landlord in Columbus, GA
Comprehensive Property Management Techniques for Fort Benning Landlords


