The Winston-Salem real estate market is getting a lot of attention from investors. One of the reasons is its diversity. There are new construction condos in gated communities, single-family homes in the city and suburbs, and established neighborhoods with a comfortable mix of homes and residents.
Buying a single-family home in Winston-Salem is a great idea. These properties are in high demand, and you’ll have a solid and stable tenant pool now and in the years to come. If you’re a new investor who isn’t sure what to expect, make sure you get together with an experienced Winston-Salem property manager. Understanding the market, industry trends, and the local tenants will help you have better investment experience.
Today, we’re sharing some of the tips that will help you get started with your first single-family rental home.
Pricing Your Winston-Salem Rental Property Correctly
New investors are often unsure about how to establish a reliable rental value for their property. It’s a good idea to consult a professional Winston-Salem property management company even before you invest. You’ll get a good idea about what rental values are in the area, and you can project what you’ll earn before you buy.
The good news is this: single-family homes often earn more in rent than multi-family properties. When your property is well-maintained and in a desirable location, you’ll have no trouble establishing a rental value that helps you earn positive cash flow quickly.
The danger is in over-pricing your property. It’s a mistake many first-time investors make, and even a lot of experienced owners do it, too. A price that’s too far outside the expected range will result in a longer vacancy period, and that’s going to be expensive.
Maybe you have a vague idea about what you’d like your property to earn every month, based on your mortgage payment and other expenses. However, the rental price is really market-driven. It doesn’t matter how much cash flow you’re after or what you’ll need to make your mortgage and tax payments. Evaluate the rental market thoroughly and check the prices for competing properties that are similar to yours.
Prioritize Preventative and Routine Maintenance
Maintenance is always going to cost money, and with your single-family home, you’ll have to be responsive and preventative. Don’t make the mistake of allowing deferred and unreported maintenance to devalue or deteriorate your property. Ignoring maintenance needs will also lead to frustrated tenants who are unlikely to renew their leases.
When a resident makes a maintenance request, respond to it right away, or at least let the tenants know when you’ll be able to take care of the problem.
HOA Costs and Regulations
Single-family homes often come with higher rental values. But, you’ll likely have to consider HOA fees as well as HOA regulations. If your rental property is in an HOA, you’ll first need to ensure you’re permitted to rent out your home. Some associations have limits about how many of the homes in the community can be rentals.
Once they’re moved in, provide your residents with a complete list of rules and procedures. You’ll be held responsible by the association for any violations. Typically, the homeowner pays the HOA fee, so you’ll need to factor that into your budget and your rental value as well.
Work with a Winston-Salem Property Manager
Unless you have the time, knowledge, and experience to manage an income-producing property on your own, hire a professional Winston-Salem property manager to help you lease, manage, and maintain your investment. This will lead to a better rental experience for you and your residents. It’s the best tip we can provide, because we know that having a professional who understands the local market and the systems, processes, and challenges that come with renting out property can make a huge difference in what you earn and how your property performs.
Look for a management company that invests in technology and has good relationships with local vendors and real estate professionals. You want a manager with a reputation for helping owners earn more and spend less on their investment.
With your single-family investment property, you’re more likely to attract stable, long-term tenants, and you’ll be able to earn consistent rental income every month. If you’d like some help with your investment plans or you have questions about Winston-Salem property management, please contact us at Capstone Realty.