Thinking about becoming a landlord? The FOCUS on NoVA Real Estate team walks you through some items to keep in mind.
It seems like everyone wants to get in on the real estate investment game right around now, especially in the Northern Virginia area. It is a fantastic return on investment if you’re in it for the long haul and if you do
your homework beforehand. Here are three things that you should consider if you’re thinking about becoming a landlord.
As the saying goes in real estate: location, location, location. But when you’re looking at real estate as an investment property you also want to keep in mind what your comps are. Even though an area may be a fantastic location you really want to make sure that the real estate agent you’re working with is running the comps to make sure that you are actually getting a good deal on a home, condo, townhome or whatever type of property you’re purchasing. Location is great but if you’re just flat-out buying the same type of home that a typical purchaser would be buying it might not be the best decision for an investment property.
Second, when you are looking at what your purchase is going to be and what you’re going to pay or charge for a monthly rent you need to keep in mind what the HOA and/or condo fees are because that’s going to play a huge part in what you’re financing or what your net return is going to be. In Northern Virginia, you do not see a lot of landlords charging renters for the HOA and condo fees; those are always tied into the rent. Make sure the numbers are coming out where you are going to either break even or make some money. The last thing you want to do is buy an investment property and then find out that you’re losing $500 every month because you did not take into account the HOA and condo fees.
Lastly, you need to think is management of the property. Are you going to self manage your property or are you going to be working with a property management company. If you self manage, you are the one collecting the fees, you’re on call for getting any items fixed and f overseeing the home in general. If you work with a property management company, they would, for a fee, take care of the daily and the monthly check-ins, the rent payments and if any items need to be done with the home.
If you have any questions about Northern Virginia real estate, reach out as we are happy to help.
