They call it the river city, a name given for its positioning along the majestic James River. The city of Richmond in Virginia is an iconic metropolis boasting a vibrant real estate industry. The residents are legal professionals, bankers, and even politicians. The cost of living is affordable, the job market is pretty strong, and the scenery is to die for.
Richmond's housing costs are far less than the national average, and you will find everything from historic row-houses to downtown lofts.
Are you interested in buying your very first Richmond rental property? Do you see yourself becoming a landlord in this charming urban area? You couldn’t have come to a better place because we’re about to walk you through your first rental property purchase in Richmond, Virginia.
Research the Market
You must look into the specific district you’re looking to buy a property in. How far is it from the nearest school? How long does it take to get to the city center? Does the area have old homes, new homes, or both? These are questions that you must ask yourself before committing to a single location.
See if you can find a property close to a good school, consider the amount of time it takes to commute, and go for an area with both urban houses and traditional ones. You want a place where houses are being flipped for profit, where developers are yet to work their magic; an investment opportunity for you and others looking to cash in on Richmond’s real estate.
The location of your property will determine how much money you can make. Things like high crime rates can badly affect your property’s profitability, so you have to make sure that you go for a good neighborhood.
Depending on which neighborhood catches your eye, there are different approaches and procedures for real estate in the various Richmond communities. Say, for instance, you’re looking into what is commonly known as a Section 8 area or regions where the Housing Choice Voucher Program applies. You will need to fill out an application packet for your tenant, submit it to the Richmond Redevelopment and Housing Authority, and wait for them to approve your rent amount or otherwise recommend you reduce it.
A safety inspection will follow, a regular lease will have to bear your signature, and within a month, you can have a tenant move in. You might have to accept vouchers as part of the payment, thanks to the Housing Choice Voucher Program. Still, because of how valuable and irreplaceable those vouchers can be to tenants, you can rest assured that your property will be taken care of and rent will be paid consistently.
Learn About what to Look for in a Good Rental Versus a Place you’ll Live.
A good rental property in Richmond might be the kind that needs flipping. Historic houses are popular these days, and with a bit of renovation here and there, you could be in for some serious profit. It would be best if you looked at how much work needs to be done on the property.
A historical house may not be ideal for raising your family, considering all the tweaks you might have to make for it to feel cozy and homey. When it comes to buying such a house to rent out, it might prove to be a good investment because these houses have a certain appeal, especially to the museum-going hipsters that seem to enjoy Richmond’s cultured vibe.
Find a Property Management Partner
It would do you well to get a property manager you can work with. It is best to get a team with a lot of experience in the Richmond area. You want someone that knows the neighborhood in and out, someone with connections, a property manager that can quickly close a deal.
As a property investor, you might not have access to certain tools and services, so it helps to get an expert to handle these things for you. Selecting the right property manager will call for you to do a bit of research. Go online to check for real ratings and pick the one with the best reviews and the most satisfied customers, like the team at Mission Realty Property Management.
Just look at the company’s credentials. They meet all the requirements of what you would look for in a property management company. They understand things from an investor's point of view and the management side of things. They'll help you manage your property's day-to-day operations, plan finances, and ensure legal compliance. What more could you ask for?
A business is only as good as those who manage it, so take the time to find the right property management partner, and you will soon be putting the “rich” in Richmond.