- Reasons for absentee homeownership include job relocation, investment properties, vacation homes, inheritance/family properties, and lifestyle choices.
- Hiring a property manager or renting the property are ways to generate income as an absentee homeowner.
- Short-term rentals and renovations can also be lucrative investments in the long run.
- Utilizing smart home technology can improve security and save on costs.
- With the right strategy, absentee homeownership can be a profitable venture.
An absentee homeowner is someone who owns a property but does not reside on or near the property. They may live in a different city, state, or even country, making it challenging to oversee their property’s day-to-day management personally.
Absentee homeowners can include individuals who own vacation homes, investment properties, second homes, or rental properties in locations different from their primary residence. These homeowners often rely on other assistance to manage their properties effectively in their absence.
Common Reasons For Being an Absentee Owner
There are various reasons why someone would become an absentee owner. Here are some of the most common reasons why:
Many people become absentee homeowners when they are required to relocate for work. They may own a property in their previous location but are unable or choose not to sell it. Instead, they keep and rent the property or have someone oversee its management.
Real estate investment is a popular strategy for generating passive income and building wealth. Absentee homeowners may purchase properties in different locations for investment purposes.
Some individuals purchase vacation homes in desirable destinations as retreats for personal use. They may only occupy these homes for a limited time each year and leave them vacant for the rest of the time. You must have someone to assist with maintaining and securing the property while the owner is away.
Inheritance or Family Property
Inherited properties or properties passed down through generations may make individuals absentee homeowners. They may not reside in the same area as the property and choose to retain ownership for sentimental or investment reasons.
Some people choose to live in one location but own property in another area that aligns with their lifestyle preferences. For example, they may own a city apartment for work but prefer to live in the countryside.
Future Retirement Planning
Individuals may purchase a property in a desirable retirement location before actually retiring. They become absentee homeowners until they are ready to relocate permanently.
Ways to Profit as an Absentee Home-Owner?
You can profit in various ways while not in your properties. Here are some of those ways:
Hire A Property Manager
As an absentee homeowner, hiring a professional can be a lifesaver. A property management service can help care for your property’s day-to-day operations, including collecting rent, hiring contractors for repairs, and ensuring your property complies with local laws and regulations. Hiring anyone to manage your property comes at a cost, but it’s a worthwhile investment to help maximize your profits while you’re away.
Rent Out Your Property
Renting out your property is another excellent way to profit as an absentee homeowner. Renting out your property can help generate substantial income, especially in a prime location. You can decide on short-term or long-term rental arrangements depending on your preference. The average rent is around $1,300, making this a profitable venture. Consider listing your property on popular vacation rentals websites like Airbnb, VRBO, and HomeAway.
Get Involved In Short-Term Rentals
If you’re not interested in renting out your property, you can still make a profit by getting involved in short-term rentals. Consider creating a space in your home for people to rent out, such as converting your basement or attic into a vacation rental suite. When done correctly, short-term rentals can be lucrative for generating income.
Renovate Your Property
Renovating your property is an excellent way to profit in the long run. Investing in upgrades, such as new appliances, flooring, or modernizing the property’s design, can significantly increase the overall value of your property over time. Renovations also give your property an edge over other listings in the market, increasing its rental and sale value.
Utilize Smart Home Technology
Smart home technology is a game-changer for absentee homeowners. Smart home technology helps monitor your property remotely, from security cameras and motion detectors to smart locks allowing you to grant access. Utilizing smart home technology improves the overall security of your property and can also help with cost savings on utilities and maintenance.
Being an absentee homeowner can be challenging but presents an excellent opportunity to generate profits. Absentee homeowners can maximize their returns with the right strategy and professional assistance while still enjoying peace of mind knowing their properties are being cared for in their absence. Following the tips above, you can ensure your property is well-managed and profitable – even when you’re away!