Buying investment properties outside of the area you live in has become more and more popular over the past 10 years or so.
One of the most basic and simple questions investors should always ask when buying for the first time in an unfamiliar market is…
How are landlord/tenant disputes resolved in this particular market?
This is actually one of the reasons why we choose the markets we invest in. As a Landlord we hate to think about the perils fo having to evict a tenant for non payment. Unfortunately, if you purchase a number of properties statistically this is bound to happen. Sometimes, It’s as easy as picking up the phone, being compassionate and working with your tenant for an amicable resolution.
In the event the tenant is unresponsive and/or unwilling to vacate the landlord is forced to take action. The benefit of understanding the process before hand can save time and money landlord and tenant.
The questions that should be determined prior to investing in a particular market is:
In the state of Ohio, the eviction process is actually quite simple and the average turnaround time to process it is around 45 days and the cost of it is on average under $500. The benefit to this is there is a clear pathway to a resolution assuming one has all the necessary documentation needed.
In many places tenants have rights that far exceed those of the property owner. In places like New York, non paying tenants have been known to squat for years before a landlord is able to take back possession of their property.
Investors must have a plan for any unexpected hiccups along the way. After all, the secret in successful investing is often times, predictability…