Rental properties with out-of-state owners are becoming more common in the United States. Many prospective tenants are raising concerns about how they can smoothly rent a place when the landlord isn’t physically present in the area.
This guide addresses common questions and offers best practices for renting from a landlord in another state.
What Is an Out-of-State Landlord?
An out-of-state landlord is a person who owns a property that they rent to tenants but live outside the state. Most out-of-state landlords will manage their properties and all rental administration from their state of residence, rarely making an appearance on the unit.
There are many reasons why landlords run properties from out of state. These include relocating to a different property for retirement or expanding their real estate investments nationwide.
What Are the Concerns of Renting From an Out-of-State Landlord?
Many tenants will raise concerns about renting from out-of-state landlords, especially for first-time renters. It wanes confidence for prospective renters for a few reasons, as listed below:
- Scam listings – One of the primary concerns of renting from an out-of-state landlord is the rise of “scam” listings on platforms like Craigslist.
- Communication – Renters will be concerned with how to communicate with the landlord if there’s an issue with the property.
- Maintenance – Tenants want to know that the rental property will have maintenance, even though the landlord is not physically present.
- Lease agreements – Committing to a long-term lease when the landlord is far away can leave tenants uneasy.
- Paying rent – Renters may not immediately see an efficient way to pay their rent if the landlord resides in another state.
6 Best Practices for Renting From an Out-of-State Landlord
Tenants often find perfect rental properties that suit themselves, their roommates or their families. However, there may be lingering concerns about the experiences of renting from an out-of-state landlord.
Here are six ways you can make renting from an out-of-state landlord more straightforward.
1. Communicate clearly with the landlord
Open lines of communication are one of the most important parts of renting from an out-of-state landlord. Tenants want peace of mind that they can easily contact us about any issues related to the property.
Ensure that you have the landlord’s contact details on hand, such as a cellphone number or email address, and that they are responsive to any queries you may have. Many property owners utilize all-in-one landlord software to manage their units remotely, making communication between parties easy.
2. Ensure the property has a local caretaker
One of the biggest concerns of renting from an out-of-state landlord is how they will respond in case of an emergency or maintenance needs. Tenants will wonder how they’ll manage if the unit needs repairs or if there’s a sudden fault with the building.
Many property owners who reside away often have managers to help look after rental units. However, it’s worth checking that there’s someone local who can help with any queries, as this can significantly smooth your rental experience.
3. Always double-check paperwork with an attorney
There’s been a rise in scam listings on popular classified websites and forums over the last few years. It highlights why checking your rental agreement is more important than ever.
Tenants will want to ensure everything about the rental is legitimate and legal. Having a licensed attorney check any paperwork regarding the property and rental can save you from any unwanted consequences in the future.
4. Don’t agree to anything unless you’ve seen the property
Always check the property before agreeing to any rentals. A personal inspection can prove to tenants that the rental not only fits their needs but that it is a legitimate listing.
5. Define payment channels for rent
Tenants want to be able to pay and track their rent easily, with the option to receive receipts. Paying with cash, check or money orders may not be an option if the landlord resides out of state.
Ensure there’s a straightforward method of payment setup to keep up with rent arrears, benefitting both the tenant and landlord.
6. Talk with any previous tenants
If there are current tenants or you know someone who has rented from an out-of-state landlord before, speaking with them could help you understand how the rental process works. You can also inquire about previous experiences with the property owner and whether it’s worth pursuing the unit based on their feedback.
Rent With Confidence From an Out-of-State Landlord
While you’ll need to be flexible in today’s property market, renting from an out-of-state landlord can raise more questions and concerns for a potential tenant. However, using these six best practices can help put your mind at ease and improve your rental experience should you find a property that’s a good fit.
Licensed broker Logan Patel holds an MBA in Urban Economics from UCLA and has steered buyers and investors through market swings for a decade. He joined us in 2024 to demystify listings, financing, and neighborhood data with clear, chart-backed advice. When he isn’t scanning comps, Logan coaches youth basketball and scouts mid-century districts for hidden architectural gems on weekend walks.
