Out of State Owners Want to Know...
Many people own second homes around the area. Sometimes they are bought on tax sale or passed down through the family. Sometimes property is bought with the intention of being used for a vacation home. Whatever the reason for owning a property in another state, there are many things you need to know.
Property taxes: No matter where you live in the US, you pay property taxes. Some states have programs to bring down your taxes, like agriculture exemptions or senior exemptions, but you still have to pay taxes.
Vacant property: Vacant property can pose many issues for out-of-state owners. If you do not have someone to check on the property regularly, it can lead to costly repairs. Weather can come suddenly and cause damage to the roof, windows, and siding. Flooding can occur in certain areas as well. Another drawback of a vacant property is that people will notice it is vacant, and some people will take advantage of that and move in without your permission which creates a huge problem with property damage and evicting someone from the property.
Renters: If you do have a legal tenant on the property, they can sometimes be an issue. Tenants are mostly good honest people who care about the property they are renting but like with everything; there are exceptions. Some tenants may illegally sublease the property or may cause extensive damage to the property and not repair it. This can leave you with large repair bills and an unexpected trip to the property.
Animals: Sometimes, animals can cause the most damage to a property. Raccoons are great at getting into places that they really shouldn’t be. Bears are also great at finding food hidden in homes. Termites (while not a problem up here) can cause damage to the foundation or decks. Carpenter ants are just as bad.
Maintenance: Owning a property requires regular maintenance. Each season brings its own tasks to help keep your home looking amazing. It can be difficult to perform the required upkeep on multiple properties. Gutter cleaning, tree trimming, chimney cleaning, and landscaping are just a few of the items that should be done yearly. Other maintenance items can be done at longer intervals.
Benefits of Owning Another Property
Benefits of owning another property. While it seems like a lot of negative things are listed, there are many positives to owning another property out of state.
Being able to stay when you travel: This is great if you don’t like staying in hotels or at a relative or friend's house. If you regularly take a vacation longer than 2 weeks to a location, then it might be time to buy a property there. Hotels are not cheap (for the good ones), and sometimes you just need your space from family and friends. Owning a second home in an area, you enjoy coming to and will use is a smart decision. You can vacation rent it out if the area allows that (always check on this before buying if this is your plan).
Rental income: Owning another property is a good way to have another income source. You can vacation rent it out as mentioned above or long-term rent if you so choose. It can provide challenges if you do not have a property manager for the property since, many times, issues arise that require your presence.
A place to go: If you live in an area that can get a little out of control, sometimes it is nice to have a place to go and relax and breathe. It can be nice to have the peace of mind that you can get away from the hustle of life and truly relax.
A place for family and friends: Sometimes, friends and family might be in the area you own property. What a nice treat to have someplace for them to stay while they are hunting, rafting, or just exploring the area.
Owning a piece of another area: Sometimes, the greatest thing is just owning a piece of property in an area you love. It can be a lot in a small mining town, larger acreage with a house for recreation, or a cute home in a charming town. Even if you don’t get there as often as you would like, you have a place to claim when you do.
Many people ask me why people would buy property here and not live here. Well, there are many reasons, and each person has their own, but it is important if you are thinking about buying property in an area that is longer than an 8-hour drive or you are going to have to fly to get there that there are some drawbacks to the benefits.
If you are looking to buy or sell your property in the Teller County area, give me a call today.