For those who are new to investing in Rent Estate™ (or ready to start), it can sometimes be impossible to know where to begin. Whether you plan to own a single property or multiple homes, it is critical to approach the development of a portfolio from a careful perspective—especially in a rental market like DC.
If you want to navigate the market here, it helps to grow with the insight of the seasoned DC property management experts at Renters Warehouse. Before you dive into a purchase, consider the wisdom we’ve gained from our time serving investors in our nation’s capital.
Establish Your Rental Business
- It is crucial to establish your real estate rental business as a recognized business.
- This makes it legal in the district while creating a professional buffer between your personal and your business assets.
- You’ll want to consider what business entity structure you plan to operate under while meeting the licensing requirements for rental properties in DC.
If you’re unsure of how to maneuver this process, reach out to us here at Renters Warehouse, and we’ll be happy to walk you through the kind of options that might be best for the intended use of your portfolio.
Research Is Your First Step
Before you ever buy a property, your first step is to research.
- You need to know everything that there is to know about the area you plan to invest in.
- That includes any benefits about the location and how accessible it is for potential renters.
- You also need to learn about the locale surrounding your potential rental:
- Are there many vacancies in a specific neighborhood?
- What types of properties are trending?
Think about the overall neighborhood, not just the rental you’ve got your eye on!
The next part of your research is to gather any data on the competition. You can begin this process by simply learning about the real estate market.
There are good base-line tools that can help you get started!
- Zillow is one option for conducting this kind of research, but be careful; they do not tend to update their listings often.
- Tools like Zillow only give you an overview, so you’ll have to define your search where you want to invest.
- Once you think you’ve found a candidate neighborhood, look at the competition in these areas:
- What are other rental properties priced?
- How long are they are on the market?
- What kind of amenities are offered?
- What’s the square footage like?
Keep in mind; you do not have to conduct this kind of pricing and profitability research yourself! When you partner with an expert DC property management partner like Renters Warehouse, you gain access to this kind of crucial research for free.
Buy the Right Property
One of the most common mistakes individuals make as they enter the residential rental market is purchasing a fixer-upper. There are plenty of TV shows that make it seem easy to increase the value of ‘a diamond in the rough.’ The reality is that it costs a lot of money out-of-pocket and represents a considerable risk to early investors.
- Choose a property that is not a ‘money pit.’
- Your first investment needs to be a sound property decision.
- Down the road, you may have more room for homes that need repair.
- You do not want to start with a bad experience in the competitive DC market!
Correctly plucking the right rental property also means knowing what your renters desire in a home. Renters in the district are looking for specific features in their rental, and they don’t always align with what a long-term homeowner expects from their property!
If you’re not familiar with the desirable features of a rental property, working with the DC property management experts at Renters Warehouse should be your first stop. It also happens to be a critical component of your rental research!
- One at a time (even if that ‘one’ happens to be a duplex), invest in properties that fit your financial goals.
- You do not have to rush the process! Get comfortable, build a presence and reputation, and then build profit.
- You will find that this process is easier with the help of the right advisors.
A property management partner also handles so much more than rental research!
Work With a Partner to Make Investing Easy!
One way to avoid the turmoil and get your business up and running faster is to turn to the experts! If you look at the houses for rent in Washington DC right now, they’re likely under the care of great Rent Estate™ Advisors. They take the guesswork out of renting and ensure you have the right resources to make wise decisions for your real estate investment portfolio.
The professionals at Renters Warehouse also help you screen prospective applicants, collect rental income, maintain the upkeep of your properties, and even help with routine inspections! A property management partner’s benefits far outweigh any of their potential monthly costs. Plus, at Renters Warehouse, we’re proud to offer investors flat-rate pricing!
If you’re ready to start building your long-term wealth through Rent Estate™, the first step is to take advantage of our FREE Rental Price Analysis on any potential rental!