While owning an out-of-state rental can be a profitable venture, the distance adds a layer of complexity. On top of all the normal landlord responsibilities, you also have to understand different state and city laws, tax requirements, licensing rules, and the practical challenges of managing a property from another state. Before buying out-of-state rental property, here is everything you need to know to make a confident decision.
Key Takeaways
- Out-of-state rental properties can help landlords diversify their portfolios, access stronger rental markets, and find areas with less investor competition, even if they don’t live nearby.
- Rental laws depend on where the property is located, not where the owner lives, and some states require out-of-state landlords to appoint a local contact or property manager to handle legal notices, tenant communication, emergencies, and more.
- Self-managing an out-of-state rental can save money and give landlords more control, but hiring a local property manager may make it easier to handle maintenance, comply with local laws, and respond quickly to tenant needs from afar.
What Is an Out-of-State Rental Property?
An out-of-state rental property is exactly what it sounds like: a rental located in a different state from where the property owner lives. The owner may manage the rental remotely or hire a local property manager, depending on local requirements and what fits their needs best.
Why should landlords invest in an out-of-state rental property?
Owning rental property in another state can be profitable because it gives landlords access to markets beyond their local area. Here are some of the pros of buying property out of state:
- Access to a wider range of markets: You can compare areas with different home prices, rent prices, and ROI to find the best fit.
- Target popular metros: even if you don’t live in one, you can have a rental in a popular city, where there is strong renter demand, good growth, and favorable landlord conditions.
- Check out areas with varying levels of competition: Expanding your search beyond your own city can help you find markets with fewer competing investors.
- Diversify your portfolio: If you own multiple rental properties, investing in another state can help spread risk across different markets.
Managing Out-of-State Rental Property: Legal & Compliance Obligations
Rental laws are based on where the property is located, not where the owner lives. Before renting out the property, review the state, city, and county rules that apply to that location.
Licensing and registration requirements for rentals
Many states and cities require short-term and long-term rentals to be registered. Requirements vary by location, but property owners may need to register the property, complete required forms, file them with the appropriate agency, and maintain an active owner registration.
Taxes for out-of-state rental
If you own a rental property in another state, you may need to file taxes in both the state where the rental is located as well as where you live. Each state has their own tax requirements as well as at the federal level, so review local regulations and deductions before filing.
Do you need a local property manager or agent?
Requirements for out-of-state property owners are tied to the state the rental property is in. Each state looks different, so it is key to become familiar with the applicable laws in that jurisdiction. For example, some states require a local property manager to handle the property while others just necessitate that a local contact needs to be named.
State-By-State Guide to Local Property Managers or Agents
Many states require landlords to disclose the name of the property owner or designated agent to the tenant, a regulatory agency, or both. Some locations also specify that a local contact must be available who can respond to emergencies and tenants within a specific time frame. See out-of-state landlord requirements by law in the table below:
|
State |
Requirement |
Law |
Notes |
|
Alabama |
No law |
|
|
|
Alaska |
No law |
|
|
|
Arizona |
Yes |
Out-of-state residential rental owner must designate and record with the county assessor a statutory agent who lives in Arizona and accepts legal service on owner’s behalf. |
|
|
Arkansas |
No law |
|
|
|
California |
No law |
|
|
|
Colorado |
No law |
|
|
|
Connecticut |
No law, but municipalities can require registration |
Municipalities may require a nonresident rental owner to file a residential address, or an entity owner to file the residential address of the “agent in charge” |
|
|
Delaware |
No law, but landlords must disclose required information in leases |
Written leases must disclose owners or appointed resident agents. |
|
|
Florida |
No law |
|
|
|
Georgia |
Yes, limited |
GA Code § 44-7-25 — HB 399, 2025 |
Nonresident landlord owning/operating single-family or duplex residential rental properties must employ a Georgia-licensed broker. If the broker is not in Georgia, the broker must employ at least one person located in Georgia to receive, coordinate, manage, and respond to tenant maintenance/other communications. |
|
Hawaii |
Yes |
Owner/landlord residing outside Hawaii, or on another island from the rental unit, must designate an agent residing on the same island as the rental unit who can act on the owner’s/landlord’s behalf on the lease or as a written statement. |
|
|
Idaho |
No law |
|
|
|
Illinois |
No law |
|
|
|
Indiana |
No law |
|
|
|
Iowa |
No law |
|
|
|
Kansas |
No law |
|
|
|
Kentucky |
No law |
|
|
|
Louisiana |
No law |
|
|
|
Maine |
No law |
|
|
|
Maryland |
No law |
|
|
|
Massachusetts |
No law |
|
|
|
Michigan |
No law |
|
|
|
Minnesota |
No law |
|
|
|
Mississippi |
No law |
|
|
|
Missouri |
No law, disclosure only |
Landlord must disclose the person authorized to manage the premises and an owner/person authorized for service and notices. |
|
|
Montana |
No law |
|
|
|
Nebraska |
No law |
|
|
|
Nevada |
Yes |
Landlord must disclose a person within Nevada authorized for service of process and receiving notices/demands, plus an emergency phone number for a responsible person in the county or within 60 miles. |
|
|
New Hampshire |
Yes, limited and doesn’t apply to most landlords |
Nonrestricted property: nonresidential rented property, and following residential rented property single-family houses if owner doesn’t own more than 3 at one time. Rental units in owner-occupied building containing four or fewer units.
Restricted property: all other residential rented properties other than those included in nonrestricted. |
Out-of-state owner of “restricted property” must file with the town/city clerk a New Hampshire-located person authorized to accept service of process. “Restricted property” excludes some categories, including certain owners of three or fewer single-family houses. |
|
New Jersey |
Yes |
Landlord registration certificate must name a person residing in the county where the premises are located if the owner’s address is outside that county; that person must be authorized for tenant notices, receipts, and service of process. |
|
|
New Mexico |
No law |
|
|
|
New York |
No law |
|
Some local laws, such as New York City housing-registration rules, may require local contact/managing-agent information. |
|
North Carolina |
No law |
|
|
|
North Dakota |
No law |
|
|
|
Ohio |
Yes |
OH Rev Code § 5323.03 — HB 294, 126th General Assembly |
Out-of-state owner of residential rental property must designate and file required information for an Ohio resident who will act as an agent for service with the county auditor, unless the owner already maintains a statutory agent with the Ohio Secretary of State. |
|
Oklahoma |
No law |
|
|
|
Oregon |
No law |
|
|
|
Pennsylvania |
No law |
|
|
|
Rhode Island |
Yes |
Non-state-resident landlord must designate and continuously maintain an agent for process, notices, and demands. Agent must be Rhode Island resident or corporation authorized to do business in Rhode Island; filing required with Secretary of State and local clerk with required info. |
|
|
South Carolina |
No law |
|
|
|
South Dakota |
No law |
|
|
|
Tennessee |
No law, but disclosure required |
Landlord registration requires landlord or agent name, phone number, and physical address with the local building-code agency, but it does not require a Tennessee/local agent. |
|
|
Texas |
No law |
|
|
|
Utah |
No law |
|
|
|
Vermont |
No law |
|
|
|
Virginia |
Yes |
Nonresident property owner must appoint and maintain an agent who is a Virginia resident or Virginia-authorized entity with a Virginia business office. Lease must designate the agent and specific information; required information must be filed with the State Corporation Commission. |
|
|
Washington |
Yes |
If the landlord/designated person does not reside in Washington, landlord must also designate a person residing in the county as agent for service of notices and process; otherwise the rent recipient is deemed the agent. |
|
|
Washington, D.C. |
Yes |
Nonresident owner of one or more rental units must appoint and continuously maintain a registered agent for service of process; agent must be a D.C. resident individual or D.C.-incorporated organization. |
|
|
West Virginia |
No law |
|
|
|
Wisconsin |
Yes |
Nonresident party to a Wisconsin residential tenancy must designate a Wisconsin resident or authorized corporation as agent for service and file the designation with DFI. Wisconsin consumer guidance also describes a required in-state address for the person authorized to accept legal papers, with exceptions for certain owner-occupied properties. |
|
|
Wyoming |
No law |
|
|
How to Decide Whether to Self-Manage Remotely or Hire a Local Property Manager
If your property’s state or city doesn’t require you to hire a local property manager, then it is your decision. While remote self-management can work well for some landlords, offloading some of the responsibilities onto a professional manager is preferable for others. The choice comes down to practicality and preference.
What to consider when deciding whether to hire a property manager or not
As you think about whether to self-manage or hire someone, consider these factors:
- Distance: The farther you live from your rental property, the harder it may be to handle showings, inspections, maintenance issues, and emergencies in person. Some cities and states require a local contact who can handle emergencies within a set time frame.
- Your availability: Self-management may be a good fit if you have enough time to handle all management responsibilities, from filling vacancies to handling current tenants. If not, then hiring a property manager may be a better fit.
- Number of properties: Managing one rental may be manageable on your own, while multiple properties can require more time, organization, and local support.
- Local legal requirements: Hiring someone familiar with the local legal landscape may make it easier to follow landlord-tenant laws, notice requirements, security deposit rules, and maintenance standards.
When to self-manage a rental
Managing a rental property by yourself may be the right fit if you have the time, resources, and ability to handle day-to-day rental responsibilities. Consider self-managing if these priorities matter to you:
- Greater control: Self-management lets you make decisions directly, from choosing tenants to setting communication expectations and coordinating repairs.
- Cost savings: Managing the property yourself can help you avoid property management fees and keep more of your rental income.
- Property awareness: Staying hands-on can help you keep a closer eye on the property’s condition, maintenance needs, and overall performance, while tailoring it to the property.
- Tenant relationships: Communicating with tenants directly can help you stay informed, address concerns quickly, and build a more personal landlord-tenant relationship.
Make Out-of-State Rental Management Easy with Apartments.com
Managing an out-of-state rental property doesn't have to be overwhelming. Whether you're navigating complex state regulations, coordinating with local contacts, or juggling tenant communications from afar, Rental Manager keeps all your landlord responsibilities and tools in one place. From state-specific leases and tenant screening to managing maintenance requests and collecting rent, you'll have everything you need to stay organized and in control — no matter how many states away your property is.
FAQs
Can you own rental property in another state?
Yes, you can own rental property in another state, but you’ll need to follow the laws where the property is located. These may include licensing, registration, tax, disclosure, and local contact/property manager requirements.
If I own a rental property in another state, do I have to file taxes in that state?
Yes, if you own a rental property in another state, you do have to file non-resident state taxes for that state. In addition, you will likely have to report your rental income on your federal and state of residence taxes.
How difficult is it to manage an out-of-state rental property?
The distance involved in managing an out-of-state rental property adds a layer of complexity on top of the typical landlord responsibilities. Some landlords can successfully self-manage remotely if they have the time, reliable systems, and a strong network of local vendors, while others may find it easier to hire a local property manager — especially if they own multiple properties, want additional assistance, or need help staying compliant with local rules.
