The 7 Best DC Suburbs to Own Rental Property

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It is no secret that real estate markets across the entire country are hotter than ever before in recent years. This means that those who are looking to get involved in real estate should do so as soon they are able to. Washington DC, in particular, is a region with many suburbs worth owning rental property in.

Not everyone understands how to find the best suburbs of Washington DC, though. Let’s explore a handful of some of the best DC suburbs!

The 7 Best DC Suburbs to Own Rental Property 1

Cathedral Heights

Due to its proximity to the epicenter of the city, Cathedral Heights is one of the most noteworthy locations for career-oriented individuals.

Additionally, the fact that it is situated in a quiet and safe neighborhood only adds to its appeal. One of its most notable attributes is its traditional brick architecture, something that appeals to many people who relocate to the area. Cathedral Heights is also well-known for its food culture, being home to multiple noteworthy restaurants.

These offer few choices ranging from Tex-Mex, traditional Japanese, and Baja style. This is one of the best DC suburbs to live in, meaning you shouldn’t have an issue finding tenants for your property.

The 7 Best DC Suburbs to Own Rental Property 2

Lincoln Park

If the amenities of a big city such as museums and restaurants are what you seek, then Lincoln Park should be your destination.

This neighborhood is home to many residents who appreciate its proximity to everything that downtown has to offer. Furthermore, its location is just north of Adams Morgan, meaning that residents have quick access to public transit. Those who choose to purchase a rental property in this area can expect the value of their home to increase drastically as time goes on.

This is simply due to the fact that there will be a continued influx of people moving to this region.

The 7 Best DC Suburbs to Own Rental Property 3

Foggy Bottom

Foggy Bottom is one of the most popular neighborhoods for young professionals working in DC. The central location and abundance of nightlife make it an ideal spot to live for those who like to be close to all the action.

Due to its prime location, it’s also one of the most notable areas in which to purchase a rental property. The demographic drawn to this area also typically have more disposable income, meaning they can afford to spend more money on rent per month.

The 7 Best DC Suburbs to Own Rental Property 4

Navy Yard

As the name suggests, this suburb is located adjacent to the Anacostia River. The Navy Yard is a rapidly developing area that is becoming more popular by the day. It’s known for its up-and-coming art scene, as well as its many new restaurants and bars.

What was once an industrial district has been transformed into one of the most desirable places to live in all of DC. This makes it an enticing location for people of all ages. Compared to the other suburbs on this list, Navy Yard has notably lower rental rates.

However, this will make it much more attractive for new residents, which will then increase the value of surrounding property. Be sure that you keep this in mind when moving forward.

The 7 Best DC Suburbs to Own Rental Property 5

Alexandria

Alexandria isn’t located as close to downtown DC as some of the other suburbs are.
However, it’s home to some of the oldest properties in the entire region. These homes are often highly attractive for those who prefer a more antiquated atmosphere. Its proximity to the Potomac River also provides amazing views of the waterfront.

This attribute on its own is a significant force that draws people to this area. For those who are interested in art culture, the Torpedo Factory Art Center has more public art studios than any other facility in the United States. Additionally, visitors can enjoy seven different galleries during their visit.

Olde Town Alexandria is a historical district, and it is not hard to find something to spend your time doing, whether it is museums, restaurants, shopping, or just a family stroll through the beautiful antiquated homes.

The 7 Best DC Suburbs to Own Rental Property 6

Bethesda

For those who are looking to invest in property within a wealthy location, this will be your prime choice. Bethesda is known for being a region with one of the highest household incomes in the entire country.

This is simply a result of the fact that many residents hold bachelor’s and graduate degrees, with a substantial number of people even having post-graduate degrees. As you might assume, it can be a bit more difficult to break into this market as a homebuyer. If you are able to secure property, however, the return you experience will be exponential.

This statement will only become truer over time as more and more people relocate to this area.

It’s also worth noting that the local government has made a conscious effort to incorporate housing options for different levels of income. So, you don’t always need to put forth a six-figure down payment to buy property in this neighborhood.

The 7 Best DC Suburbs to Own Rental Property 7

Adams Morgan

The Adams Morgan area is known for its many bars and restaurants, making it a popular nightlife destination among younger professionals. The concentration of these venues gives the surrounding area vibrant energy.

As such, it’s a popular location for those who enjoy the hustle and bustle of a larger city. As previously mentioned, younger professionals often have a significant amount of disposable income.

Finding the Best DC Suburbs Might Seem Overwhelming

Occasionally, investors may even feel as though they won’t be able to find the ideal option for them. The above information will be a powerful resource on your journey to secure a rental property in the best DC suburbs.

Be sure that you keep this in mind so you can make the decisions that are best for you. Want to learn more about what we have to offer? Feel free to get in touch with Nomadic Real Estate today to discuss your residential real estate needs.

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Enhanced Reporting

Your portal includes a selection of extremely useful reports. Reports are available in the “Reports” section, and are distinct from the financial statements. Unlike financial statements which are static records, Reports are dynamic real-time records that will update with current data every time you view them. 

Scroll down to learn more about Reports:

Navigate to the "Reports" module in your portal:

Owner Portal Reports
  • Keep in mind, these reports are dynamic records. They will refresh to display current information every time you view them. 

Enhanced Rent Roll Report:

Enhanced Rent Roll Report
  • The Enhanced Rent Roll Report will show the rent amount, last payment date, move-in date, lease expiration date, and security deposit amount for each of your tenants. 
  • It will also show a portfolio summary with occupancy percentage, vacancy loss, and more!

Unit Comparison Report:

Unit Comparison Report
  • If you own multiple units (or buildings) with Nomadic, you’ll get access to the Unit Comparison Report. 
  • This report enables you to quickly compare financial performance between your units at a glance without toggling between individual reports. 

Income Statement Month-Over-Month:

Income Statement by Month Report
  • The Income Statement Detail – Monthly Report serves as a month-over-month record of portfolio performance. You’ll see itemized income and expense categories and can track monthly. This report will update with fresh data every time you view it. 

Financial Statements

Financial statements will be published to your portal on a monthly basis. The statements are found in your Documents library, and provide a historical record of all financial performance. The statements serve as a snapshot of financial performance over a given period, and are static documents (unlike Reports, the statements do not update/change in real-time). 

Scroll down for more info about the Financial Statements in your Documents library:

The Documents area contains monthly financial statements:

Owner Portal Documents
  • The statements in the Documents are are static documents. They are posted to the portal once a month to serve as a historical record of financial performance. 

Download a statement to see month and YTD financials:

Owner Portal Property Statement

You'll also find a month-over-month operating statement:

Month over Month Statement

Portal Communication Tool

You can use your owner portal to communicate with our team. Any messages you send through the portal will go straight to your Account Manager. When we reply, you’ll get an email notification and you’ll also see the message in your portal next time you log in. 

Here’s an overview of using the communication platform:

Click "Communications" and navigate to "Conversations":

Commincation Dashboard Screenshot
  • The communications module will contain a record of all messages that you create through the portal. 

Click the "New Message" button and send your message:

Owner Portal New Message Screenshot

Responses will show up in the conversation ticket:

Portal Conversation Response Screenshot
  • You’ll get an email notification whenever you get a response, and you’ll also see the message in your portal next time you log in. 

You can reply in-line using the comment box:

Owner Portal Comment

Each conversation will be logged in its entirety:

Portal Conversation Snapshot

Understanding the Ledger

Your portal includes a ledger with all transactions. The ledger is populated with data in real-time as transactions flow through our accounting software. Much of this information is also available in the Reports area, as well as the Statements in your Documents library, but the ledger is the most comprehensive resource for diving into the details. 

Please scroll through the sections below to get a better understanding of how to interpret the ledger. 

By default, transactions are sorted chronologically:

Owner Ledger Dates
  • The date reflected in the lefthand column is the actual transaction date, not the “bill date”. This is the date the transaction was actually processed. 

If you have multiple properties with Nomadic, you'll see the address for each transaction in the "Location" column:

Ledger Property Column
  • You can filter the ledger to look at just one property, all properties, or specific sets of properties. 
  • If you only have one property with us, you’ll just see the ledger for that property. 

The Description column displays the transaction type:

Owner Ledger Description Column
  • BILL: this is an expense transaction, such as for repair costs or management fees.
  • CHARGE: this is a transaction  billed to the tenant, most typically a rent payment. 
  • NACHA EXPORT: this is a credit we processed to your distribution account. This type of transaction is how you get paid! 

The Amount column shows the dollar value of each transaction:

Owner Ledger Amount Column
  • Positive Amounts: if an amount is positive, it reflects a transaction that is payable to you. Typically, this will be a rent payment that we collected from your tenants. On occasion, a positive number could also signify a journal entry or credit adjustment. 
  • Negative Amounts:  if an amount is negative, this is a transaction that is either payable to Nomadic or is an amount that has already been paid to you. Typically this will be for repair costs or management/leasing fees. Owner draws (net distributions into your checking/savings account) also reflect as negative amounts, since they have already been paid to you. 

The Account Balance column shows a sum of positive/negative transactions at a given point in time:

Owner Ledger Account Balance Column
  • Account Balance should always equal zero after a net distribution has been processed. When the balance is zero, this means that all expenses have been paid and you’ve received the remainder as net operating income, leaving a balance of zero (meaning: no one is due any money, as all funds have been distributed appropriately). 

Navigating the Propertyware Owner Portal

Your portal includes some extremely useful features that help you understand your property’s financial performance at a new level, with real-time transparency into every transaction.

Scroll through the snapshots below for an overview of portal navigation! If you need more help or have specific questions about using the portal, you can reach out to your Account Manager any time for a screen share. 

You can filter all info by date range or property:

PW Portal Filters

View a snapshot of income and expenses on your dashboard:

PW Owner Dashboard View

See every transaction in real-time on your ledger:

Owner Portal Ledger View

Statements and forms will be posted to your documents library:

Owner Portal Document Library

View a suite of real-time financial reports:

Portal Reports View

See a running list of all bills, and drill down for more detail:

Owner Portal Bills View

Under Bill Details, you'll find dates/descriptions/amounts and more:

Portal Bill Details

You can also communicate with your Account Manager through the portal:

Owner Portal Communication Tools

How do net distributions work?

Net distributions keep your accounting clean and simple. Each month we’ll collect rent from the tenants, deduct any repair expenses for the previous month and any management/leasing fees for the current month, and credit the remaining net operating income to your account. 

Net Distribution

You’ll receive a statement via email each time a net distribution is processed, and can view all transaction details in your Propertyware owner portal.