If you’re considering a real estate investment in Richmond, Virginia, you should know that technology is rapidly changing the way investors buy and ultimately monetize their investment properties.
These advances are happening on two fronts - first, in the creation of new technology and devices to enhance owner experience and quality of living; and second, in the creation of tech-enabled services that make property both easier to buy or sell, and easier to monetize in the long-term.
All of this plays into the hand of real estate investors in Richmond, because with the region’s rising economic prosperity has come a wealthier class of homebuyers, and with it, an enormous opportunity for investors willing to build for the modern buyer.
New Devices and Hard Technology
In a generation, we’ve seen what was once saved for The Jetsons come off the TV screen and into our homes. Now, with a smartphone or virtual assistant like Alexa, technology has enabled us to control nearly every aspect of our lives. We can control the climate with Nest, the ambiance with Philips Hue, security with August, and pretty much anything else with a slew of other new devices.
As a real estate investor, compared to the cost of other renovations or features, these are relatively low cost additions that can differentiate your investment property in a huge way. Most importantly, you’ll stand out to a new class of Richmond homebuyers to whom quality of life is cloud-connected and voice-enabled.
Technology doesn’t stop at devices - as one of the hottest real estate markets in the country, Richmond residents have quickly made good use of tech-enabled services to make monetizing their properties easier than ever.
“Tech-enabled services” encompasses any business whose model (and profits) are powered by proprietary technology - think AirBnB or Redfin for residential properties.
How does this help investors increase their profits?
First, services like Redfin have only increased the liquidity of residential properties - however you tap into an MLS, technology helps your listing get out there, get in front of the right people, and ultimately, get sold faster.
Second, rental services like AirBnB offer owners a long-term monetization strategy. On the residential side, this makes rehab-to-rent even more appealing, as it increases your pool of potential renters for short-term stays. Plus, if your unit is in a popular neighborhood or hotspot, these services open the door to homebuyers who might want to operate the unit as an AirBnB hotel for the long-term.
Building for Tomorrow’s Buyer, Today
Whatever your strategy for your Richmond investment property, it’s impossible to deny that technology is rapidly changing both the potential improvements and the prospective buyers you might encounter on your investment journey.
Real estate investment often boils down to how you can make your property stand out among the crowd - and thanks to ever-changing landscape of home technology and tech-enabled services, it’s easier than ever to build for tomorrow’s buyer, today.
If you’re interested in learning more about how you can build your real estate portfolio, check out our free ebook, Building Your Real Estate Empire: Borrower Basics 101.