Are you ready to start your investment journey? Rental property is one of the best investment options of the current era. It is less volatile than bonds and stocks, and it serves as a shock absorber for economic downturns. It is also a good source of passive income.
The team at Keyrenter Chester has put together the following article to help you kick-start your journey and make the best of your rental property.
Why You Should Invest in Chester, Virginia
Chester, located in the county of Chesterfield, has a unique atmosphere that attracts many kinds of residents.
A major allure of the area is its diverse economy and availability of jobs. Dozens of international companies have set up shop in the area. Some of the major employers include UPS, Capital One Bank, Deloitte, Amazon, HCA Virginia Health System, and Dominion Energy.
What makes Chester an ideal place for residents is its wide range of cultural and recreational options for every age.
The Chesterfield County Public School District offers a comprehensive education for children in the area. Pocahontas State Park is one of the leading attractions, offering hiking and biking options. For those with a love for history, we recommend Henricus Historical Park.
With its quality amenities and recreational options, you might think that owning property in Chester is out of your budget range, but you might be surprised to hear that the property average in Chester is relatively lower than that in Richmond and Henrico.
In addition, the cost of living is below the national average. You can expect to pay less in housing and accommodation in Chester.
Tips When Buying Investment Property
1. Location
If you have any experience in the property industry, you’ve probably heard of the mantra of location. That’s because property is an immovable asset and its value is derived from its surroundings. Tenants will be looking at the nearby amenities to decide whether to lease your property or not.
When you’re making a selection, some of the location markers you should be looking at include proximity to good schools, the level of crime, availability of social amenities, zoning, and potential developments coming up in the area.
2. Financing
Compared to other investment options in the market, there are few that can match the asking price of real estate. For many, the path to obtaining a rental property is through financing from a lending company.
We advise that you do a high-level analysis of the various options available to you. Go to a number of financiers and read thoroughly through their terms. You should be looking at the down payment required, interest rate, length of repayment, and other loan terms.
Should you be in a good financial situation, you can do a mix of equity and leverage to pay-off your loan as soon as possible.
3. Property Management
Property investment requires more than selecting the best property in a particular neighborhood. It’s also about the management of the property. You must ensure it remains in optimal condition, manage the tenants’ requests and expectations, and establish a network of contractors and vendors in the area.
Landlords self-managing their properties can expect to invest several hours in a day to attend to such issues. To demystify the situation and avoid possible headaches, you can rely on the experienced team at Keyrenter Chester.
We are a full-management service provider operating in Chesterfield County and known for our comprehensive management solutions. We can help you market your property, handle complex maintenance problems, and navigate Virginia landlord-tenant law.
4. Extra Expenses
It’s important to have saved more than the exact amount of your rental property’s purchase price, as there are closing costs you might have to incur to finalize the sale. This could be in the form of attorney fees, title insurance, taxes, and home appraisals.
Depending on the market and the state of the property, you might have to complete some repairs to attract renters. You should have enough money saved to cover maintenance costs and pay utilities while you market and screen tenants.
5. Consider Property with Outdoor Spaces
In this age of remote work, more and more people are converting second bedrooms into their working spaces. To attract and maintain tenants, you should consider property units with outdoor spaces.
This advice shouldn’t force your hand to buy single-family residences. An outdoor space might be in the form of a balcony or patio. It could be the ideal place for residents working from home to get some sunlight and unwind from a hard day’s work.
Conclusion
With the advice above, you should be able to start off your investment journey and turn your property into a rental success.
Should you feel as though you’re out of your depth and need detailed property investment advice, the experts to rely on are at Keyrenter Chester. We’ve had the privilege of helping dozens of landlords enter the local market. Our sound and professional advice has served them well and it would be our honor to offer you the same.
Get in touch with Keyrenter Chester today and receive a quote for our property solutions.