For most investors, learning the rental property business is on-the-job training. From setting the right rental price to screening quality tenants and keeping up with maintenance, it's hands-on work without the help of residential property management (Virginia Beach). However, owning investment properties can be profitable when investors know the tricks of the trade.
A rental house on its own doesn't generate income! Property owners need to understand how to take a professional approach to become a successful landlord when they own a 'business' that provides rental housing to tenants.
What do property investors need to know about building a profitable rental property portfolio in the Virginia Beach area? We've put together some of our best tips to help property owners grow their wealth through rental property investments. Keep reading to learn more from the experts at Renters Warehouse Hampton Roads!
Your rental properties won't generate income until you find your bullseye price and then find a tenant. How can investors know the best rental price for a property?
Every property in your portfolio has an ideal rental price (what we refer to as your "bullseye price")—but you shouldn't try to base this number on a guess. Successful investors know that you don't merely "pick" a rental price for a property: the research that comes with a rental analysis "tells" you the ideal rental rate for every property in your portfolio.
What you want to charge your tenants to live in your property and what the market says you should charge can be two different figures. If you want your tenants to pay $2,000 to live in your property, but the market shows you should set the rate at $1,200, it's best to listen to the market. When we see landlords struggling to fill an otherwise excellent rental property, their rental price is one of the first things we investigate.
Renters are smart: they know the market, and they won't want to overpay for your property when they can find a similar property already set at its bullseye price! Performing a rental analysis helps you:
Resist the temptation to overcharge your tenants—but make sure you don't sell your property short! When the rent is too low, you lose money. When the rent is too high, your properties remain vacant until you find a tenant willing to pay too much for your property.
The ideal rental rate helps you find the right renters—and generate the income you need from your investment properties!
After you've set the rental rate, you need to get the word out about your available rental properties. Creating a property listing is both an art and a science! It's critical to include the nuts-and-bolts about your property—but the listing must also catch the eye of your next potential renter.
Your property listings need to describe your properties and include professional-quality photos. However, you should also be using each property's listing to tell the story of your Virginia Beach rental! In a sea of online property listings, when yours stands out from the rest, you're more likely to find your ideal tenants.
Creating a compelling property listing is easier when you work with residential property management, Virginia Beach landlords! Trusting experts to show off your property is one of the best ways to find your ideal tenants quickly!
Placing a renter in your rental property is only the beginning of your landlord-tenant relationship. Choosing the right tenant is a critical part of starting your new working relationship with that resident. From there, managing tenants through a good relationship helps investors make more money!
When you have an empty rental property, you lose money until you find a tenant to begin paying rent. However, despite the income loss from a vacant property, it's never worth it to hastily place a tenant without thoroughly screening every applicant.
A bad tenant (like a Professional Tenant) can become more expensive and create a significant loss to your income. Take the time to properly screen for the right renter!
Keeping good tenants for more than one lease term helps property investors make more money. The process of finding your next renter can be expensive: replacing tenants after every lease term is time-consuming and can reduce your profits.
When you find those high-quality renters that pay the rent on time and take good care of your property, they are more likely to stay through another lease renewal if you are doing your part. It's essential to encourage tenants to stay by fulfilling your end of the lease as an excellent landlord!
Being a successful investor isn't only about finding tenants and collecting the rent. You also have a responsibility to provide a safe place for your tenants to live.
Without professional property maintenance services, you risk losing your best renters: poor maintenance services are one of the top reasons renters leave to find a new home.
We're not talking only about responding to tenant maintenance requests. Good property maintenance is a year-round effort!
Juggling contractors or trying to repair maintenance issues on your own can become frustrating (and expensive) when you're a property investor. Spending money on the wrong property upgrades can also cause you to lose money.
When you hire residential property management, Virginia Beach landlords, you never have to worry about maintenance! Your property manager handles everything for you and your tenants—24/7.
Many investors quickly realize that real estate is one of the best ways to build long-term wealth. One investment property can be a manageable asset. However, when you realize that adding more properties to your portfolio means you can generate more income, it's easy to get overwhelmed by the day-to-day time commitment of managing multiple properties.
There's no need to become overwhelmed! With the right experts, property investors don't need to invest more time to generate more investment income.
When you're ready to grow your portfolio, it's time to hire residential property management, Virginia Beach property owners!
Your Professional Landlord is an expert who handles everything from finding your bullseye price for each property to creating your property listings, screening tenants, and handling maintenance. Property management makes real estate investing a genuinely passive way to grow your wealth!
Are you ready to take your investment income to the next level? Follow the tips in this guide from the best residential property management Virginia Beach has to offer! Let Renters Warehouse Hampton Roads help you make sure you're not leaving money on the table with a free Rental Price Analysis for your properties!