Do you own a house in Richmond, Virginia? Are you interested in the prospect of turning it into a rental? If so, it can be a sound financial move!
Renting can be a great choice if you want to build wealth. Owning an rental unit creates passive income through monthly rent payments from tenants. Landlords can put this rental income towards paying their mortgage or even ramp up their savings.
That said, being a landlord isn’t always smooth sailing. Just because you have a rental property doesn’t automatically mean you’re on your way to success. Renting and property management can be a full-time job, and for some, the road can be bumpy. That’s why it’s important to acquire as much knowledge as possible prior to jumping into your first lease agreement.
In today’s blog, we at Keyrenter Property Management Richmond will walk you through some tips on how to become a landlord, maximize your rental income, and rent out your house successfully.
Know What’s Involved
Being a rental property owner is a full-time job. You need to know and execute your landlord responsibilities meticulously in order to be successful, maximize your rental income, and remain in compliance with Virginia law. The following are some of the things that will fall under your sphere of responsibilities once you start renting out your property to tenants:
- Filing taxes every tax season, including property taxes
- Working with legal documents, including lease and rental agreements
- Marketing the home when it becomes vacant
- Screening residents
- Maintaining the home to the required safety and health standards
- Collecting rent every month
But even if you don’t have prior experience handling rental responsibilities, you can still rent out your Virginia rental property. You can contact professionals like Keyrenter Richmond and hire them to handle the duties for you as you learn the ropes of the rental business.
Get the Property Rent-Ready
Once you know what being a landlord entails, start getting the home ready for potential renters. Habitability laws require that landlords provide renters with livable and safe property. In other words, the property you rent out must meet certain minimum safety, health, and building codes like running hot and cold water and working plumbing and electrical systems.
But providing a livable property isn’t enough when it comes to renting out a home. You need to make it desirable to capture the attention of potential renters, as well. Remember, you aren’t the only landlord renting out a property in the Richmond area and renters will be looking to get the best rentals on the market. The following are a few things you could do to make your rental more desirable to potential renters:
- Spruce up the curb appeal
- Give the house a thorough cleaning
- Clear out the clutter
- Paint the walls with a neutral color palette
- Make repairs where necessary
- Invest in new, energy-efficient appliances
Understand the Virginia Landlord-Tenant Law
The Virginia Residential Landlord and Tenant Act apply to parties that enter into either a written or verbal lease agreement. It grants both parties certain rights and responsibilities under the law.
It’s important that all landlords familiarize themself with the act in order to avoid potential issues with your tenant. For example, you’ll want to know:
- How much notice you must give your tenant prior to entering their rented property
- What acts may qualify as discriminatory as per the Virginia Fair Housing Act
- How much notice you must serve the tenant prior to raising their rent
- How much notice is required to terminate a periodic lease agreement
- The difference between normal wear and tear and excessive property damage
- The limit on how much you can charge tenants as a security deposit
- The procedure you must follow when evicting tenants or terminating a lease
Market the Rental Home
Figure out what makes your Richmond rental property stand out and create a marketing copy. The ad copy should be detailed, yet concise. Also, make sure to write a proper headline, and the property’s description, and include high-quality photos.
Next, figure out how the ad is going to reach your prospective renters. You should distribute the ad far and wide so that as many potential tenants as possible can view it. Distribution options include yard signs, local dailies, rental listing sites, and social media. You could also hire professionals to do the marketing on your behalf.
Screen Prospective Tenants
When selecting tenants, your goal should be to select the the tenants that are most suited for your house. You want to get a tenant that has a history of paying rent on time, caring for the rental property, abiding by the terms of the lease agreement, and are generally reliable renters.
When screening tenants, you’ll also want to keep in mind the Virginia Fair Housing laws. For starters, landlords must stay away from questions that touch on a prospective tenant’s protected class. Examples of questions you should not ask to include:
- Are you married?
- How many children do you have?
- Where are you originally from?
- Are you a Christian?
- Is that a service animal?
Additionally, make sure the screening process remains consistent throughout. Ask the same questions and require the same documentation from every applicant you screen to ensure a fair and equal process.
Hire a Professional Property Manager
Evidently, managing a rental property requires a lot of time and effort. It can be stressful and time-consuming to always be on top of rental or lease agreements, security deposits, rent collection, local laws, and maintenance requests. This is especially true for landlords that are just starting out, are out-of-state investors, or have a growing investment portfolio.
In such scenarios, hiring a team of professionals in Virginia may make the most sense. A reputable company will help you navigate all tasks reliably and professionally while complying with Virginia laws. They will have the industry knowledge and experience to ensure that your rental venture is a success.
Bottom Line
Renting out your house can be lucrative, and many landlords live on rental income alone. However, as you can see, there is a lot that goes into being a responsible landlord. Luckily for you, professional property management companies offer expert help if managing your rental property by yourself isn’t a feasible option at the moment.
Keyrenter Richmond is a quality property management company based in Richmond, Virginia. We can help you take the stress out of managing your investment rental property. Contact us to learn more!