Whether you own one D.C. rental property or you have a more extensive portfolio of many types of rentals, the basics of successful investing never change. When investors master the fundamentals of successful real estate investment, they can replicate the success with almost any property in any market.
As with any investment or business best practices, applying the right strategies, processes, and insights from property management in D.C. helps investors make more money. When you know what works from a trusted source—and you see the boost to your income as a result of best practices—you're ready to grow a larger portfolio and reach your financial goals.
What are the basics of success real estate investors need to know? We've put together some of our best insights to help new (and seasoned) D.C. rental property owners get the most out of their investments. Here's what you need to know.
The Right Properties Are Critical
When you first start as an investor, your experience can either quell your desire to keep going or make you want more properties (and more income). Choosing an excellent property for your first real estate investment is critical to enjoying the experience and revenue.
- If you relocate to a new home, turning your former home into a rental property can be a smart idea.
- You probably kept the property in excellent condition. Getting it rental-ready could be simple and inexpensive.
- With the right property management in D.C., you'll soon have a renter generating rental income for you.
- Hiring a property manager also means you don't have to do any routine maintenance work, paperwork, or other details required to run a successful property.
As a seasoned investor, choosing your next property wisely is critical. Don't let the excitement of your next investment cloud your judgment. A cheap property could require significant renovations that damage your future income before getting it on the D.C. rental market.
Location Can Make or Break a Property
- The most beautiful property in the city can be a liability as a rental if it's in an undesirable location.
- Renters look for locations that make it easy to get to work, walk to parks, enjoy local restaurants and retail, and provide plenty of recreation options.
- No matter how well you renovate a property in an area where renters don't want to live, you'll never generate the income you need to make it work.
An excellent D.C. rental property that sits empty because it's not in a renter-friendly location is an expensive mistake. Before buying a property, work with property management in D.C. to learn more about the location and if it attracts the renters you need to keep it occupied and generating monthly rental income.
Choose Property Renovations Wisely
When it's time for property updates, remember this rule of thumb: What renters want in a home is different than what homeowners look for in a house. Your personal preferences as a homeowner might also differ from what works best for a successful rental property.
- You might want a house with high-end flooring, chef-quality kitchen appliances, granite countertops, and more.
- However, while extravagant features in a rental property might generate some looks at your listing online, they won't bring in renters willing to pay a high price to live in your rental.
- They'll pass on your property to choose a good-quality home that's priced appropriately for the D.C. rental market.
The best property management in D.C. helps investors make smart decisions and renter-friendly property renovations. We guide you to the upgrades that keep your properties competitive and attract quality renters. With your bottom line in mind, smart updates help you make more money.
Never Skip the Tenant Screening Process
A potential renter might have put all of the right information on a rental application, but they might not be the right resident for your property. A renter can look good on paper, but without a thorough tenant screening process, investors can miss critical red flags that indicate a bad renter is hiding behind seemingly good information.
- Every time you need to find a new renter, apply a deep-dive screening process to every applicant.
- With the information you collect on your rental application, conduct a credit check, confirm employment and income, look at prior rental history, contact references, and review criminal history.
- When an applicant meets your criteria and doesn't display any warning signs after a background check, they could be the ideal resident for your D.C. rental property.
Find the Right Property Management in D.C.
If you're not sure how to incorporate these investor basics into successfully operating a rental property, it's time to work with the best property management services. We apply these basics with ease—plus many more best practices and strategies—to help investors get the most from their rental properties.
Whether you're new to investing or you're a seasoned investor, let EJF Real Estate Services apply our experience and industry expertise to help you meet your long-term income goals! You can also learn more about the benefits of growing your portfolio with the aid of professional property management when you download our free guide to real estate investing.