Insights About Northern Virginia Property Management from Ron Riddell

Generating Passive Income Streams with Rental Properties

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In terms of wealth management, passive income is extremely valuable and favorable for investors. Figuring out how to increase your cash flow without having to actively add to your existing workload is something most people are trying to do, but struggle to sustain. Certainly, one of the most popular forms of passive income in Northern Virginia is Real Estate. Purchasing a home with the intent of renting it out for more than you might pay on a mortgage in order to make some extra cash has become one of the most popular ways to earn passive income. And for good reason.

Not only will you make a profit each month as you rent out your property, but buying real estate is one of the best investments you can make in Northern Virginia. The Northern Virginia market has demonstrated stability across  many decades.

In general, one of the aspects of owning and operating a rental home that most people do not fully consider is how much work goes into the day-to-day and month-to-month maintenance of the home. Not only that, but how will you find renters? What about Fair Housing? How do you collect the rent? What if someone doesn’t pay? What if a pipe bursts in the middle of the night? If you live down the street, chances are you can manage your own property.  But if you own multiple properties or don't live in the area, you have different considerations.

Finding a property management firm that has your best interests in mind can make a world of difference when it comes to getting the best returns on your investment and successfully operating your rental property. Let’s start with what all a property management company does.

What does PROMAX PROPERTY MANGEMENT do for you?

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First, what is the job of a property manager? At its core, a property management company handles all of the logistical aspects of operating a rental property so that you don’t have to. With a great property manager, working together will feel more like a partnership than a one-sided job. Your goal is to safeguard your property and create an income stream, and our goal is to ensure your property is profitable and well-managed. In general, this is what you can expect from us:

Consultations:

• Property previewing

• Management and lease agreement reviews

• Compliance and legal discussions

• Marketing analysis with marketing strategy

• Tax implementations and insurance requirements

Tenant Vetting (All in-house)

• Check for employment verification and references

• Credit history from Equifax

• Tenant orientation services

• Detailed move-in and move-out inspections with photos

Financial and Admin Services

• Collection of rent + monthly statements

• Centralized accounting

• Disbursement of property expenses

• Direct Deposit

Maintenance and Property Care

• Regular inspections + maintenance

• Dedicated emergency response line

​A Partnership You Can Trust

• Mutual Trust

• Owner Participation

• Routine Communication

• Managed Risk

• Meeting Your Expectations

• Extensive Experience

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Foreign Service & Absentee Owner Experts

• OVER 30 years of service to State Diplomats

• Unique understand of the needs of Foreign Service and Military clients

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These are just a few examples of what PROMAX offers our clients as we manage their rental properties.

Is Renting Your Home a Good Idea in Northern Virginia (right now)?

If you’re considering renting your home in the Northern Virginia area instead of selling it, it’s probably a good question to ask if renting is even the right choice. It certainly very much depends on your unique situation. Renting isn't right for everyone and in this case, we recommend a consult. However, right now is actually a good time to hold onto to your property and rent instead of sell..

As we enter April of 2022, housing inventory is low and prices and home values are continuing to rise. This is making it more and more difficult for some people (especially first-timers) to purchase a home. With such a competitive market, more people are going to be turning to renting as a longer-term option rather than buying a home as soon as they can.

This is good news for investors. Just like the selling market, the rental market is also experiencing price increases due to a shortage of inventory and increased demand, which is projected to be particularly strong in 2022.

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Northern Virginia Boasts a Strong Military and Technology Presence

When you consider working with a property management company, you’re going to want them to be the right fit for you. We understand that more than 25% of our clients are Department of State, USAID, and DOD, which allows us to serve those specific communities and families better.

Perfect for Foreign Service Officers

Along with military and technology workers, we have also worked extensively with foreign service officers to manage their homes as rentals while they are living abroad.

There is a lot of trust involved in handing your property over to someone while you spend months, if not years, living in a different country. This is why we work hard to get to know our clients, establish relationships, and build trust to ensure that your property will be taken care of and managed well.

How much does property management really cost?

We offer some of the most competitive property management pricing in Northern Virginia. We try to keep pricing simple for our clients. All management companies are different when it comes to costs, but here are some that you can expect when you work with PROMAX.

• Tenant Procurement Fee: 80% of First Month’s Rent

• Management Fee: 8% of Monthly Rent

• Lease Renewal Fee: 25% of First Month’s Rent

While these are the typical costs that come with hiring a property management company, all situations are different, which is why we work hard to partner with our clients to provide them the best service at the best price possible.

Why PROMAX is the Right Choice for You?

When it comes to finding the right property management company for you - local experience is key. You want a brokerage that has experience in the market, understands the local area, and knows what tenants are looking for.

When it comes to managing your property, our in-house team handles every aspect of the management process. Not only that, but we have designated home care coordinators responsible for maintenance, care, and scheduling routine inspections.

We are careful to pay attention to the details so that we can best serve our clients, helping them keep tenants in the property and ensuring a steady cash flow. If you’re wondering if right now is a good time to rent your property in northern Virginia instead of selling, we really believe it is. You can make more money in the long-run, build equity in the home, and watch your investment increase in value over the years to come.