How to Make Money With Rental Properties in Hampton Roads

Hampton Roads is one of Virginia’s most reliable rental markets. 

With a large military presence, strong universities, and a growing economy, housing demand remains steady year-round. Investors benefit from stable rents, strong tenant demand, and the opportunity to diversify portfolios with both single-family and multifamily homes.

• Average rent: About $1,500 per month (Source: apartments.com, 2025).
• Vacancy rates: Under 6%, lower than the national average.
• High-demand neighborhoods: Chesapeake, Suffolk, Norfolk, and Virginia Beach consistently attract renters due to proximity to bases, schools, and employers.

Hampton Roads offers a strong foundation for making money with rental properties. However, success depends on choosing the right strategies and support.

Before you can profit, it’s essential to understand the fundamentals of investing in real estate.

Start With the Basics of Real Estate Investing

Most seasoned real estate investors started with the basics.  The key is understanding how to calculate cash flow, returns, and risk before scaling.

Core concepts include:

• Cash Flow: Income after deducting mortgage, taxes, insurance, and expenses.
• Cap Rate: A measure of rental return based on property value.
• ROI (Return on Investment): How much profit your property generates compared to your investment.

Example: A home in Norfolk rents for $1,600/month. With $1,200 in expenses (mortgage, taxes, insurance, maintenance), cash flow is $400/month, or $4,800/year. That’s a 9.6% ROI on a $50,000 down payment.

Explore Financing Options

Understanding your financing options can make or break your rental investment success in Hampton Roads. Choosing the right loan type will impact your cash flow, growth potential, and ability to scale your portfolio.

Types of financing options for investing in real estate include:

• Conventional loans: Best for investors with strong credit.
• DSCR loans: Based on property income, not personal income.
• Portfolio loans: Good for scaling multiple properties.

Selecting the right financing strategy helps you build a sustainable investment plan and avoid unnecessary risks as you grow.

Choose the Right Rental Property Type

Different types of rental properties appeal to different tenant groups and can affect the stability of your income. Investors should carefully weigh the advantages of each option before making a purchase.

Types of rental properties include:

• Single-family homes: Attract long-term tenants, ideal for military families and professionals.
• Multi-family properties: Increase cash flow potential and spread risk across multiple units.

By matching your property type to your investment goals, you’ll create a stronger portfolio and reduce vacancy risks.

In Hampton Roads, investors use a variety of approaches to generate consistent returns and build long-term wealth. The strategies below are among the most effective.

Rental Property Investment Strategy #1: Buy and Hold

Purchase a property and rent it long-term to benefit from monthly cash flow and long-term appreciation. This is especially effective in stable neighborhoods like Chesapeake and Suffolk.

Rental Property Investment Strategy #2: BRRRR (Buy, Rehab, Rent, Refinance, Repeat)

This method works well for older Hampton Roads homes that need updates. Renovating raises property value, increases rents, and allows investors to refinance and reinvest.

Rental Property Investment Strategy #3: Value-Add Upgrades

Investing in upgrades like energy-efficient appliances, smart thermostats, or new flooring can increase rent and tenant satisfaction while reducing turnover.

Rental Property Investment Strategy #4: Passive Real Estate Investing

For those who want true passive income, partnering with a local property management company ensures expert marketing, leasing, and maintenance without hands-on effort.

Owning a property is just the beginning. To actually make money with rentals, you need effective management practices that protect your investment and keep income flowing.

In Hampton Roads, successful landlords follow proven systems to stay organized and avoid costly mistakes.

Follow All Laws

Virginia has strict landlord-tenant laws. Violating them can result in costly lawsuits or even losing the right to operate rentals. Property managers stay current on these laws so you don’t have to.

Put Best Practices in Place

Successful landlords use systems for:

• Online rent collection
• Automated maintenance tracking
• Expense management and reporting
• Strong tenant communication

These practices reduce risk and protect long-term profitability.

Talk to Osprey about full-service Hampton Roads property management today →

Your lease agreement is one of the most important tools for protecting your property and setting expectations with tenants. 

A well-crafted lease not only outlines responsibilities but also gives you the legal foundation to enforce rules, apply fees, and handle disputes. 

Include Critical Terms in Your Lease Agreement

Every rental property lease should include:

• Names of all tenants
• Rent amount, due date, and late fee policies
• Rules for pets and emotional support animals (handled differently under federal law)
• Maintenance request procedures
• Renewal and termination terms

A strong lease reduces disputes and protects your rights as a landlord.

Even with careful tenant screening and strong management practices, every landlord eventually faces a renter who falls behind on payments or violates lease terms. 

In these situations, eviction may be the only way to protect your investment and regain control of your property. Understanding both the costs and the prevention strategies can help you minimize financial loss.

The True Cost of Eviction in Hampton Roads

On average, an eviction costs $3,500–$7,000 in Hampton Roads when you factor in attorney fees, court costs, lost rental income, and the time needed to prepare the unit for a new tenant. Beyond the financial burden, there’s also the added vacancy period that reduces your cash flow.

How to Prevent Evictions

Fortunately, there are practical steps landlords can take to reduce the likelihood of ever needing to evict a tenant. By focusing on prevention, you can avoid costly turnover and maintain consistent rental income.

• Screen tenants thoroughly: Use credit checks, income verification, and rental history to find reliable residents.
• Maintain open communication: Respond quickly to tenant concerns and keep the relationship professional but approachable.
• Offer renewal incentives for reliable tenants: Encourage good renters to stay longer with perks like small upgrades or flexible lease terms.
• Partner with a property manager to resolve problems early: A professional team can step in to mediate issues before they escalate to eviction.

Applying these practices won’t eliminate the risk completely, but they greatly reduce the chances of eviction and help keep your rental properties profitable.

Managing rental properties yourself can limit profitability. A trusted property manager provides:

• Faster leasing: Osprey’s average time on market is under 12 days.
• Guaranteed rent: Their program ensures income even during vacancies.
• Full-service management: From tenant screening to maintenance and compliance.

Working with professionals means fewer mistakes, less stress, and higher returns.

Question: Is owning rental property profitable in Hampton Roads?

Answer: Yes. With strong demand, average rents of $1,500, and vacancy rates under 6%, properties here are profitable when managed effectively.

Question: How do I increase my rental income?

Answer: You can raise rents strategically, reduce vacancies with strong marketing, and add value with upgrades like new flooring or energy-efficient systems.

Question: What are the best rental property investment strategies?

Answer: Buy-and-hold and passive investing with property management are two of the most reliable approaches in Hampton Roads.

Question: Can I invest in Hampton Roads from out of state?

Answer: Yes. Many out-of-state real estate investors from outside Virginia buy here because knowledgeable local property managers like Osprey make it easy to handle operations remotely.