If you’re investing in Williamsburg rental property for the first time, you have a lot of opportunity waiting for you. Well-maintained rental homes are always in high demand, and when you buy the right property you can count on reliable rental income as well as long-term ROI.
But, you have to do it right. There are a lot of mistakes waiting to be made, and the better you avoid them, the more profitable your first investment will be.
Today, we want to share a few tips we have for first-time investors like you to help you avoid those expensive mistakes that many other property owners have made before you.
Establish Your Investment Goals
Diving right in is one way to do it, but you’ll have a lot more success as an investor if you take the time to establish some investment goals. Decide why you’re investing and what you hope to gain. Maybe it’s some immediate rental income or a long-term plan for appreciation. Perhaps you have some money and you want to invest it in a tangible asset. Perhaps it’s part of your retirement plan.
Once you have your investment goals established, be consistent about sticking with them.
Look for the Right Opportunity
Invest in a property that’s going to attract the tenants you will hopefully place there. You don’t have to be an expert in real estate to understand the importance of location. Location is important, and so is property condition.
Homes in desirable neighborhoods and near good schools, commuter routes, parks, and recreation are going to rent for more than homes in remote or busy areas. The location of a rental property also has an impact on how quickly you’ll be able to rent out your property and the types of tenants you’ll attract.
The wrong property might be a fixer-upper. It could be in a remote location with a terrible commute for most tenants. Stay away from those. Trust your goals and get to know the market so you’re buying the right Williamsburg rental home.
Price Your Williamsburg Rental Property Correctly
New investors are often confused about how to price their rental property. You probably have an idea about what you’d like your property to earn every month, but the rental price is really market-driven. It doesn’t matter how much cash flow you’re after or what you’ll need to make your mortgage and tax payments. Evaluate the market thoroughly and check the prices for competing properties that are similar to yours.
Make Rental Property Maintenance a Priority
One of the things new investors often under-estimate is maintenance.
Make sure that routine and emergency maintenance issues are a priority for you. Any deferred maintenance will only damage your home and drag down its value. It will also create frustrated tenants who feel like their landlord isn’t taking care of their responsibilities. When a tenant makes a maintenance request, respond to it right away, or at least let the tenants know when you’ll be able to take care of the problem.
Handling problems while they’re small will save you money and avoid headaches. In our years of experience, we have never heard of a maintenance issue becoming easier or cheaper with time.
Choosing a Williamsburg Property Manager
Unless you have the time, knowledge, and experience to manage an income-producing property on your own, hire a professional Williamsburg property manager. You need someone who knows the local market and understands the property management industry.
Find a company that can accurately price the home, market it, and screen for highly qualified Williamsburg tenants. Look for a management company that has good relationships with local vendors and has a reputation for helping owners earn more and spend less on their investment. A local management company will also understand all the laws, requirements, and best practices in Williamsburg property management. You need local expertise when it comes to lease agreements, code compliance, and reporting.
We’d be happy to help you get started as a real estate investor in Williamsburg. Contact our experienced team at Berkeley Realty Property Management.