Are you looking to become a real estate investor? This could be a financially beneficial option for you!
The process may seem intimidating if you’re a first-time investor wanting to buy a rental property. However, knowing what to look for might help you avoid potential pitfalls that could hurt your profits.
In this blog, you’ll learn some helpful tips for buying an investment property in Hampton Roads.
The Allure of Hamptons Roads Real Estate
Hamptons Roads is the ideal place to invest due to its proximity to cities and towns in Coastal Virginia. Suffolk, Norfolk, Portsmouth, Newport News, and Virginia Beach are some notable mentions.
Hamptons Roads is a target area for not only young professionals but also families looking to settle down and establish some roots. With its beautiful weather and a plethora of recreational activities, short-term or long-term renting are both viable business models for property owners.
Tips for Those Looking to Invest in Hampton Roads
Choose the Right Location
It’s of the utmost importance to consider the location during a property investment. The emphasis on this is key since the property is immobile and its location will determine its allure to renters once put on the market.
That said, a rental property that is located near schools, hospitals, eating establishments, and public transportation is considered to be in a prime location. Once on the market, it will take no time for the vacant property to find a qualified renter.
It could be difficult to strike the optimal balance between a desirable location and every modern comfort that a tenant would wish for. Researching places that have experienced consistent rates of appreciation throughout time is crucial.
Take into Account all Potential Costs
When you start looking at what goes into maintaining an investment property, there is a lot to cover, so having an expense checklist is vital. The most typical costs that spring to mind are the normal maintenance costs, repairs, renovations, and property tax payments, but there are other particular charges that landlords must consider.
A home that you intend to rent out requires more general maintenance. You’ll also need to factor in mortgage payments, closing costs, inspection fees, marketing expenses, and more. What’s more, in the start, it’s good to have an additional financial cushion in case the property is vacant for longer than your estimate.
Do Extensive Research About Rental Property Management
Any property can be purchased, but turning it into a successful rental business comes with a lot more responsibilities. Make sure you understand your investment goals and establish a plan to achieve them before investing too much time and money into the project.
Ask yourself the following questions to ensure that you’re investment goals are met:
- Does your target demographic of tenants prefer single-family homes or complexes?
- What kind of location are they seeking?
- Do you know the right rental price range?
- Are you going to hire a property manager or manage it yourself?
Before you do anything else, you should clearly understand your objectives and your strategy for achieving them. A rental property can be beneficial, but getting involved with a bad one could destroy your business. Once you are certain of the location and kind of property you want, you can start playing with the figures.
Consider reaching out to a property management company as they will be able to guide you on which areas and properties will best meet your needs and the needs of your target demographic. they will also ensure that your property remains legally compliant at all times.
Buy a Rent-Ready Property
Finding a home that is tenant ready is in your best interest as a new investor. Purchasing a house that needs work may cause a delay in the rental process and additional expenses.
Remember that your aim should be to turn the property into an asset as rapidly as possible. There is one exception, though. Purchasing a fixer-upper can be a fantastic option if you have prior expertise in remodeling homes. You may purchase a cheap house and renovate it to greatly increase its worth.
Once again, you need to assess what your investment goals are so that you can purchase a property that aligns with them.
Recognize How the Rental Laws Operate
Landlords who disobey municipal and state landlord-tenant rules can become explode to legal and financial consequences.
For instance, there are specific rules on to store and use a tenant’s security deposit, how to maintain your unit and what kinds of notices you are required to give tenants. You also have to ensure that you’re always conducting business per the Fair Housing Laws.
Of course, there is just part of the regulations governing the rental property. Landlords should also keep in mind that these laws are always subject to change therefore, you have to stay up-to-date on local, state, and federal rental regulations.
Get an Insurance Policy for your Property
You should get landlord insurance. This added protection with help you rest easy knowing that your business is covered. Inquire with the insurance provider to see if you can combine landlord insurance with a homeowner’s insurance policy to reduce your insurance expenses.
Conclusion
It takes time, work, attention, and, most importantly, the proper team to invest in real estate in Hampton Roads. One of the best ways to ensure that your investment property is in good hands is to hire the services of a trusted property management firm.
By working with the team at Keyrenter Hampton Roads you can be sure that your property will be cared for by the best in the industry. We guide you through the process of renting out your investment property, so you don’t have to worry about it. Contact us today to learn about our property management services!