How to Make Money With Rental Properties in Hampton Roads

Making money is one thing, but having fun while making it is another thing! Many investors build a successful passive real estate investing strategy, but they don’t always enjoy the work enough to justify the results. 

One way to get more out of your real estate investments and enjoy the passive returns is to build your knowledge about the industry. Investing in real estate can become frustrating when investors feel unprepared, don’t have the best strategies, or feel like it’s more work than it’s worth to see a little bit of extra income. 

Property managers recommend starting with some of the best books on real estate, along with insightful real estate investing courses—either online or in person. Using what you learn from books and courses can help you build a foundation for better success as a rental property owner!

Start With the Basics

Most seasoned real estate investors started with the basics. With a foundational understanding of how real estate investments work, how to buy and rent properties for a profit, and how to grow a portfolio, you’ll be able to start on the right foot and experience consistent income for long-term returns. 

Whether you start your portfolio here in the Hampton Roads market or choose properties here as a long-term distance investor, mastering the fundamentals can help you see returns more quickly for lasting success! Long-distance real estate investing can be a valuable strategy to diversify your portfolio and minimize the potential for income loss as markets fluctuate.

So, with a few books and courses under your belt and a new rental property to start your real estate investing journey, it’s time to develop your strategies for managing the property! 

Operating rental properties as a landlord in the Hampton Roads area requires more than owning a home, letting a tenant move in, and collecting rental payments. Property owners must have policies and practices in place to keep rental units maintained well, handle renter concerns or disputes, market vacant properties to reduce income loss, and establish excellent communication and relationships with renters. 

Follow All Laws

Property owners must also comply with all laws and regulations to operate rentals legally. However, laws can change over time—sometimes without warning and frequently. Therefore, it’s critical to stay on top of legal requirements and adjust your operations to follow all landlord-tenant laws. Violating tenants’ rights or laws can lead to lawsuits, fines, and losing the ability to operate rental properties in the Hampton Roads area. 

Put Best Practices In Place

A property management company can tell you that keeping up with landlord and tenant rules and operating profitable properties is easier with the right property management system in place. With software that can help you track rent payments, manage maintenance requests, and keep up with expenses, property owners spend less time trying to keep up with critical tasks while avoiding critical (and potentially costly) mistakes. 

Many property investors also apply tips and tricks they learned from property managers and industry experts. Using experienced resources to build your portfolio can lead to better long-term success when learning how to create wealth investing in real estate.

In addition to sound operational practices and real estate 101 fundamentals, owners can’t overlook the importance of a well-crafted and airtight rental agreement!

While it can be tempting to use a free lease agreement template, a real estate investor risks putting properties at risk without customizing each agreement for better protection. Without an airtight document, owners don’t have the resource they need to enforce the rules, apply late fees for past-due rent, or legally evict a tenant when necessary. 

When creating a lease, start by determining the type of lease (or length of lease) that works best for your properties and long-term goals. Many property owners prefer long-term leases vs. short-term agreements to ensure consistent monthly income for a year or more. However, short-term agreements can be the right choice, depending on your goals and preferences for your property. 

In some cases, a month-to-month lease could be appropriate, but be sure to consider the pros and cons of this type of arrangement. It’s common for long-term leases to convert to a monthly agreement until a tenant renews a new longer-term lease or decides to move out. However, a month-to-month to lease agreement can be the right solution for other situations, as well. 

Include Critical Terms

After determining the ideal length of your rental lease agreement, make sure it includes all critical terms to make it a legally binding document. 

In addition to the starting and ending dates of the tenancy, leases must include crucial information, like the names of all tenants living in the property, the monthly rent amount and due date, house rules and policies, and how tenants should place maintenance requests. 

Leases should also include verbiage about pet policies and how residents should formally request to have an emotional support animal in the property. An emotional support animal must be handled differently than pets in a rental unit, so the lease should show that you understand and comply with these legal requirements.

While most tenancies take place without significant issues, understanding the legal eviction process is an important part of being a successful landlord. Most property owners experience a bad tenant at least once while operating a rental property. When all other options fail to resolve a bad renter situation, owners must pursue the legal process to remove the resident. 

However, evictions can be costly. A property manager can help you understand the costs involved (including lost rental income, attorney fees, and court costs), then help you work with an attorney to resolve a situation legally while minimizing income loss. While there are multiple options to consider when handling a tenant who can’t pay rent, sometimes eviction becomes necessary. 

With the guidance of one of the best Hampton property management companies, owners can understand how to serve eviction notices the right way and what happens after delivering a 30-day notice to a renter. 

Avoiding Eviction Is Better For Your Bottom Line

While sometimes eviction is unavoidable, property owners can take steps to reduce the potential for evictions. For example, screening tenants to place better quality residents helps with a successful eviction prevention strategy. In addition, applying strategies that help keep residents happy and being a good landlord can also help you avoid tenant disputes and the need for removal.

We know that managing successful rental properties can be a lot of work! While many real estate investors start with one or two properties and self-management, getting the most out of rentals and build a bigger portfolio usually requires help. 

Hiring a property manager can be one of the best decisions you can make to build more success and significant wealth through rental properties in the Hampton Roads area. However, not all property management companies offer the same high level of service to help you meet your goals. 

In addition to having established processes, local experience, and extensive experience, the best property manager also helps rental property owners avoid common DIY mistakes that can minimize returns. Sometimes even small things can lead to significant expenses when operating multiple properties as a self-managing landlord. 

To find the support you need from a property management company, look for specific qualities, and don’t settle for a company that can’t deliver what you need. The ideal property manager should listen to your goals and put a management plan in place to help you get there. They should also have plenty of experience in the area, fit your budget, and communicate well with you and your renters. 

Choosing the right property management company is a crucial decision, but it’s the best way to ensure lasting success and build long-term wealth! With the right experts, property owners don’t have to worry about navigating legalities, finding good tenants, creating strong lease agreements, or enforcing the rules. Property managers do it all while improving your bottom line.