You may be in the business of real estate investing in order to make money.
However, real estate is about more than new construction, renovations, and closing deals.
It’s about providing homes to people.
There’s some responsibility that comes with that, and this is why there are so many opportunities to have a positive social impact as a real estate investor. By giving back, you can have an investment experience that’s not only more profitable, but also more meaningful to you and to the community.
By aligning real estate initiatives with community needs, agents and developers as well as investors and landlords can cultivate a lasting positive effect that’s more important than square footage and rental values.
Here’s how you can integrate social responsibility into your real estate business and contribute to impactful change.
Understanding Real Estate Social Impact and How it Applies to Hampton Roads Investors
Are you wondering how exactly to define real estate social impact? Maybe it’s not a set of words you hear a lot.
This term involves using real estate projects and investments as tools to drive positive social change. This could mean anything from developing affordable housing to creating sustainable, green spaces that enhance community well-being. It could mean bringing smart home technology to under-served neighborhoods. It can even be something as simple as sponsoring a local school event or a youth sports team.
It can be as big or as small as you want. When we talk about social impact, we’re talking about the positive changes that can be made when real estate decisions help or support communities.
Why Focus on Social Impact?
Not all real estate investors are going to care about how their business practices impact the community around them. But, if you want to make a difference with the work you do, think about how that’s possible. Social impact can contribute to:
Community Strengthening. Projects that focus on affordable housing or community spaces help create stable, interconnected neighborhoods.
Environmental Benefits. Sustainable building practices minimize environmental degradation and promote health.
Reputation Boost. Companies recognized for their social responsibility enhance their brand image and customer loyalty.
Strategies for Creating Social Impact
If you’re on board with this concept but not sure how to get started, we have some ideas for you.
1. Develop Affordable Housing
The need for affordable housing in Hampton Roads is growing. Real estate professionals can play a pivotal role by investing in or developing properties that provide affordable living options. This not only addresses housing shortages but also supports economic diversity and stability within the community. If you’re not able to develop specific housing projects, maybe consider opening up a few of your rentals to tenants who have housing vouchers such as Section 8.
2. Invest in Sustainable Practices
Use eco-friendly materials and incorporate energy-efficient designs in your projects. Buildings with green certifications not only reduce environmental impact but can also lower operating costs and attract tenants interested in sustainability. This also contributes to more efficient operational costs and processes.
3. Partner with Local Nonprofits
Collaborate with local charities and nonprofit organizations to address specific community needs. For instance, donating a portion of sales to housing-focused charities or offering pro bono services for housing initiatives can create tangible benefits for residents.
4. Create Community Spaces
Design and support public spaces, such as parks, community centers, or urban gardens that encourage social interaction and community engagement. These spaces can increase property values and foster a sense of belonging among residents.
Building a Community-Positive Approach
Landlords and real estate investors are uniquely positioned to make community a focal point of their operations and investment goals. This community-positive approach can have some positive social impacts.
Let’s make this more personal. Here are some of the ways that we recommend you build a community-focused investment strategy that carries a lot of social impact:
Embrace Strong Tenant Relationships
Creating a sense of community starts with your tenants. Satisfied tenants are more likely to renew leases, take care of the property, and refer others to your properties. When you have a better relationship with your tenants, both you and your residents are well-connected with each other and with the community.
Commit to transparent and responsive communication. Address their concerns promptly and keep them informed about any changes or improvements. Put together some engagement activities that will bring people together. You can organize community events such as BBQs, holiday parties, or movie nights. These activities foster a sense of belonging and community among tenants. It also establishes you as something of a community leader.
It’s a good idea to consistently solicit feedback from your tenants on their living experience and any areas for improvement. This shows you value their input and are committed to enhancing their living environment. If they have an idea, you should take the time to consider it. It might improve their own experience, and it might increase your own success, too.
Invest in Property Maintenance and Upgrades
You cannot create and sustain a positive and impactful community when you don’t have homes that members of the community are eager to live in. Put some effort into creating the type of community that people want to embrace. Well-maintained properties not only attract quality tenants but also contribute to a sense of neighborhood pride. Consider the following:
- Routine and Preventative Maintenance. Schedule regular inspections and maintenance to address issues before they become major problems. This should be a priority for many reasons. Regular maintenance will reduce the likelihood that expensive and frustrating emergency repairs are needed. You’ll also protect the value and condition of your property while investing in its future. When you take care of your own properties, you contribute to a stronger neighborhood that’s more appealing to good renters.
- Modern Amenities: Invest in modern amenities such as high-speed internet, fitness centers, and communal spaces. These additions can enhance the tenant experience and set your properties apart from the competition. Tenants today are looking for smart home technology. They want ease and convenience and when you provide it, they’re eager to live in the property you’re offering.
- Sustainable Practices: Implementing eco-friendly practices like energy-efficient appliances and recycling programs can also appeal to environmentally-conscious tenants. This is a huge new trend in the Hampton Roads rental market lately, and by creating a greener home and a more sustainable neighborhood, you’re tapping into common goals that residents and neighbors share.
Engage with the Broader Community
Good attitudes toward community and social impact begins with your own properties, but it quickly extends out to the larger area. Being an active member of the larger Hampton Roads community can provide numerous benefits for rental property owners. Here’s how to get involved:
- Create and Welcome Local Partnerships. Partner with local businesses and schools and organizations to offer exclusive discounts or services to your tenants. This not only supports the local economy but also adds value for your residents. Get to know the local cleaners, landscaping companies, and snow removal specialists. If there are sporting events at a local college, try to procure some tickets to give to tenants. You want to work together to make Hampton Roads not only a nice place to live, but the best place to live.
- Participate in Community Events. When you’re an active member of the things that happen around town, you develop a bit of a recognizable brand. That’s good news for you and your properties. Sponsor or participate in local events and initiatives. This can enhance your reputation and visibility within the community. It also serves the current residents you rent homes to and even potential tenants that you hope to attract one day.
- Join Neighborhood Associations. Whether it’s a formal HOA or a loosely held community of neighbors, get to know these groups. Join them. When you participate in neighborhood associations, you can do a better job of staying informed about local issues and contributing to community development efforts.
Hampton Roads Property Management
Another partnership that can help you have more of a social impact is the partnership you have with your Hampton Roads property managers. Maybe you’re managing your own rental properties on your own. That’s great. It’s still a good idea to network with professionals who can help you communicate better with tenants, wrap your head around the latest laws, and identify the best investment opportunities that may be out there.
Having an impact is about more than making investments. It requires a genuine commitment to building and nurturing a sense of community. It’s really impossible to succeed completely on your own.
By focusing on tenant relationships, maintaining high-quality properties, engaging with the broader community, and staying informed about market trends, rental property owners can create a thriving, sustainable business in this growing real estate and rental market.
Let’s talk about where you see yourself within the larger community. Contact us at Doud Realty Services, Inc. We provide expert property management in Norfolk, Portsmouth, Hampton Roads, as well as surrounding areas such as Virginia Beach, Suffolk, Chesapeake, and Newport News.