Looking to get started in Newport News/ Norfolk
Real Estate Agent · Culpeper VA · Member since 2022 · 8 posts · 9 votes
Looking to get started in Newport News/ Norfolk
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Patti RobertsonBusiness Member
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votesThere is enough demand in the corporate rental market that most people move to that in the winter months if STR demand is low. One thing to be warned about is there are areas of Ocean View and other areas surrounding the base that there are restrictions. There is an ariel pattern jetting out from the landing strips that are in a crash zone that have restrictions. Check the city website for details before you commit to an address.
27 Replies
- Member since 2022 · 13 posts · 22 votes4y
Hi Riley- I too am looking to invest in this area. I am new to BP as well. I bought an investment property in FL where I would ultimately like to retire. However, my oldest son and his wife are stationed in Norfolk and have fallen in love with the area. Been researching the area, looks like there are lots of dupls,tris and quads. Would love to connect with you.
- Virginia Beach, VA · Member since 2017 · 68 posts · 26 votes4y
For Norfolk I'd do a short term rental like Airbnb, which is what I'm planning to do next. I'd like to get a place in Oceanview near the beach. Norfolk actually allows STRs and has a process in place to register with the city and pay the taxes and such. Newport News doesn't allow them at the moment (unless the house is also your primary residence that you live in) so we just hope nobody complains and shuts us down. Long term rentals could work in either city but I like to chase the big Airbnb money.
- Real Estate Agent · Culpeper VA · Member since 2022 · 8 posts · 9 votes4yI haven’t looked much into Airbnb, but I’ve seen a lot of posts about it in Norfolk, was wondering how that’s works when it gets into the colder months. Any info?
Quote from @Joseph Harr:
For Norfolk I'd do a short term rental like Airbnb, which is what I'm planning to do next. I'd like to get a place in Oceanview near the beach. Norfolk actually allows STRs and has a process in place to register with the city and pay the taxes and such. Newport News doesn't allow them at the moment (unless the house is also your primary residence that you live in) so we just hope nobody complains and shuts us down. Long term rentals could work in either city but I like to chase the big Airbnb money.
- Virginia Beach, VA · Member since 2017 · 68 posts · 26 votes4y
Quote from @Riley Harrison:
I haven’t looked much into Airbnb, but I’ve seen a lot of posts about it in Norfolk, was wondering how that’s works when it gets into the colder months. Any info?Quote from @Joseph Harr:
For Norfolk I'd do a short term rental like Airbnb, which is what I'm planning to do next. I'd like to get a place in Oceanview near the beach. Norfolk actually allows STRs and has a process in place to register with the city and pay the taxes and such. Newport News doesn't allow them at the moment (unless the house is also your primary residence that you live in) so we just hope nobody complains and shuts us down. Long term rentals could work in either city but I like to chase the big Airbnb money.
There are more knowledgeable people on here than me but I believe that there is enough demand even in the colder months. There are lot of people here, a lot of military bases, colleges, hospitals.
I have an Airbnb house in Virginia Beach and I still had bookings in Oct. In Nov and Dec I had a tenant in there from FurnishedFinder. She was a traveling nurse. She originally was leased through Jan but asked if she could leave early because her contract changed. So I let her out in and opened it up on Airbnb again in Jan and got a few bookings before I closed it again to convert my attic to another bedroom. I listed it again in April and it's been doing great since then. We'll see how it does this fall and winter but I think it'll at least break even until the good weather again.
The summer months are definitely way more profitable and should be able to make up for the slower months. I know some vacation rentals that close up and lease out monthly during the colder months and some that just keep it open for STR. Seems like both could work. Sometimes when a vacation rental is for sale, agents will provide the rent history broken down by date and nightly rate. I've definitely seen that people book week-long beach houses in January at the lower prices.
I think Norfolk is similar to Virginia Beach except it may be a little more steady and less seasonal. You just gotta make sure you follow the city's guidelines and get your permit. You need to have a certain number of parking spaces depending one which part of the city the property is in. Things like that.
If you were going to consider a STR in Norfolk, definitely check out the city's website here:
- 4yPatti RobertsonBusiness MemberProperty Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
There is enough demand in the corporate rental market that most people move to that in the winter months if STR demand is low. One thing to be warned about is there are areas of Ocean View and other areas surrounding the base that there are restrictions. There is an ariel pattern jetting out from the landing strips that are in a crash zone that have restrictions. Check the city website for details before you commit to an address.
- 4yPatti RobertsonBusiness MemberProperty Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
@Dezmon Robertson - You may have some insight to add.
- Member since 2022 · 4 posts · 7 votes4y
What makes the area unique to invest in is the fact that you have a vacation destination combined with a very large military presence that attract tons of visitors. You also have colleges, hospitals, and corporate offices that keep demand flowing throughout the year. Demand does fluctuate from the summer to winter months, but the data shows that the top properties still have high occupancy during the slowest parts of the year. Some homeowners are satisfied with churning high profits during the high season and going month to month during the winter, and that's why you see that strategy with some properties. The best investment strategy to maximize your ROI will be to furnish and manage your property in a way that will still attract during the slower season. Airbnb is just one of many platform to use to advertise your properties to make sure you can keep demand maximized.
As far as choosing the right property, you need to be very sure you qualify for a permit. Not all of the city's requirements are listed on the websites. Little nuances, like specific caveats in the zoning, will make a property that seems clear cut in compliance get disapproved during the zoning review. We get our contacts at the city involved for preliminary approval before our homeowners have any contracts signed, and I would encourage you to be that careful before you buy to make sure you can actually run a legal STR.I hope this helps!
- Member since 2020 · 2 posts · 1 vote4y
Me and my business partner are also just looking into the Norfolk area. More like New Port News, VA but close enough I guess. We have a little experience down in FL but the market is so hot we're shifting focus to VA.Any help would be great.
- 4yMel VollandPro MemberRealtor · Norfolk, VA · Member since 2020 · 23 posts · 23 votes
@Joseph Harr @Riley Harrison Newport News does allow STRs, they recently rolled out their latest requirements. Though, I haven't gone through the process yet, I will be navigating on behalf of another investor who owns a series of duplexes there. I help local investors evaluate their properties for STR/MTR operations. While Norfolk allows them, it is a process you need to be prepared for, especially if your property requires a CUP. The process involves city planning and commissions, city council, local civic leagues along with making sure the property fits the criteria to pass…these items are not found on the website, so don't be fooled thinking you have it in the bag. I'm assisting a past client go through the process and we are 10 months into it and approaching the finish line! My #1 advice, make sure the long term rental numbers make sense when purchasing so in worst case scenario you have a fall back plan that keeps you covered if STR doesn't pan out. If ou are serious about this strategy, make sure you also work with a real estate agent or someone who knows and understands the nuances to get approved. Good luck out there! Feel free to reach out!
- Member since 2020 · 2 posts · 1 vote4y
Is there any chance you or anyone on this thread has a real estate agent recommendation for the New Port News, VA area? Also, has anyone been through the VA auction process for purchasing homes that are being foreclosed upon?
- Virginia Beach, VA · Member since 2017 · 68 posts · 26 votes4y
Quote from @Mel Volland:
@Joseph Harr Newport News does allow STRs, they recently rolled out their latest requirements. Though, I haven't gone through the process yet, I will be navigating on behalf of another investor who owns a series of duplexes there. I help local investors evaluate their properties for STR/MTR operations. While Norfolk allows them, it is a process you need to be prepared for, especially if your property requires a CUP. The process involves city planning and commissions, city council, local civic leagues along with making sure the property fits the criteria to pass…these items are not found on the website, so don't be fooled thinking you have it in the bag. I'm assisting a past client go through the process and we are 10 months into it and approaching the finish line! My #1 advice, make sure the long term rental numbers make sense when purchasing so in worst case scenario you have a fall back plan that keeps you covered if STR doesn't pan out. If ou are serious about this strategy, make sure you also work with a real estate agent or someone who knows and understands the nuances to get approved. Good luck out there! Feel free to reach out!
@Mel Volland Can you share the requirements for Newport News short term rentals? The last thing I'm aware of is at the end of June, the city council voted to allow STRs but they must meet certain requirements. The house needs to be your primary residence for 185 days per year and you can't STR a detached structure. Another thing in the ordinance is that you can't STR more than 10% of the units in a multifamily property. Also there are some parking requirements. I'll just paste it below. If you have other information, that would be great.
AN ORDINANCE TO AMEND AND REORDAIN CHAPTER 45, ZONING ORDINANCE, OF THE CODE OF THE CITY OF NEWPORT NEWS, VIRGINIA, ARTICLE V. GENERAL REGULATIONS, BY ADDING THERETO A NEW SECTION, NAMELY: SECTION 45- 517.1, SHORT-TERM RENTALS.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Newport News, Virginia:
1. That Chapter 45, Zoning Ordinance, of the Code of the City of Newport News, Virginia, Article V. In General, be, and the same hereby is, amended and reordained, by adding thereto a new section, namely: Section 45-517.1, Short-term rentals, as follows:
CHAPTER 45
ZONING ORDINANCE
ARTICLE V. IN GENERAL
Sec. 45-517.1. Short-term rentals.
(1) A short-term rental shall only be allowed in the following manner:
a. Single-family and multiple-family dwelling units.
1. The dwelling unit is used by the property owner as his/her primary
residence, which means that he/she resides there for at least one
hundred eighty-five days during each year;
2. The dwelling unit and any bedroom(s) rented to overnight lodgers shall
be within the main building of the dwelling unit that the owner
occupies as his/her primary residence and shall not be in a detached
accessory building;
b. Multiple-family developments.
1. For the purposes of this section multiple-family developments are
defined as building(s) containing more than two (2) dwelling units held
in common ownership.
2. A property owner of a multi-family development may only provide the entirety of a dwelling unit as a short-term rental.
3. The total number of dwelling units provided for short-term rental shall not exceed ten (10) percent of the overall dwelling units within the development.
(2) All short-term rental properties within the city shall meet the following standards:
a. There shall be no more than 2 lodgers per bedroom with the maximum number of overnight lodgers on any night of a short-term rental being no greater than six (6);
b. Not less than one off-street parking space shall be provided for such dwelling unit in addition to the number of spaces required for the property in accordance with applicable zoning district regulations;
c. Simultaneous rentals under separate contracts are prohibited for short-term rentals;
d. A short-term rental shall have working fire extinguishers, smoke detectors, carbon monoxide detectors, and an exit plan. All of such equipment and the exit plan shall be accessible to overnight lodgers at all times. The exit plan shall be posted inside the door of each bedroom showing the exit pathway
from the bedroom to the nearest exit from the dwelling;
e. Any bedroom used in a short-term rental shall have a closet, a window and shall have a door that separates such bedroom from other parts of the short term rental;
f. Commercial gatherings, including but not limited to luncheons, banquets, parties, weddings, charitable fund-raising, commercial or advertising activities, or other gatherings for direct or indirect compensation are prohibited;
g. A short-term rental shall comply with the requirements of the Virginia Uniform Statewide Building Code, as determined by the Building Official;
h. A short-term rental that is equipped with a swimming pool shall comply with the provisions of Article I of Chapter 39, Swimming Pools, of the City Code;
i. The owner of a short-term rental shall comply with the provisions of Chapter 40 of the City Code, pertaining to the payment of transient occupancy tax;
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j. The owner of a short-term rental shall comply with the provisions of Chapter 19 of the City Code, pertaining to Solid Waste, Litter and Recycling;
k. Loud noises, as defined by and prohibited under Chapter 28 of the City Code, shall not be emitted from a short-term rental;
l. The owner of a short-term rental must obtain a business license from the commissioner of the revenue prior to the operation of the short-term rental. The business license must remain current and active while operating; and
m. The owner of a short-term rental must maintain a guest log showing the names, addresses, telephone numbers, and arrival and departure dates of all short-term rental occupants. The owner must allow the zoning administrator to inspect such guest log upon reasonable advance notice, to verify that the short-term rental is being operated in accordance with the provisions of this section.
(3) The owner of a short-term rental must obtain an annual certificate of zoning compliance from the zoning administrator for the short-term rental he/she operates within the city. A certificate of zoning compliance will be issued upon completion of the following:
a. Proof of ownership as follows:
i. Single-family and multiple-family dwelling units. Proof of the owner’s permanent residence at the proposed short-term rental property. Acceptable proof of permanent residence includes: owner’s driver’s license or voter registration card showing the address of the property, or other document(s) which provides equivalent proof, as determined by the department of codes compliance,
ii. Multiple-family developments. Proof of ownership of the development, within which the proposed short-term rental dwelling units are contained. If the development is owned as part of a corporation, LLC or other entity, then articles of incorporation, bylaws or other authorizing document stating the person authorized to sign on behalf of the entity is required.
b. The payment of all real property taxes, nuisance charges, utility fees, and any other charges owed to the city that constitute a lien on the short-term rental property must be current;
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c. Proof of liability insurance covering accidental injury to a guest on the property in an amount no less than $300,000.00;
d. A floor plan of the short-term rental which identifies the location and number of bedrooms in the dwelling and the location of the items required in subsection 2(d) of this section;
e. The owner of a short-term rental within the city shall pay a certificate of zoning compliance fee in the amount of one hundred fifty dollars ($150.00) to the department of codes compliance, which shall be valid for one year from the date of issuance. It is the responsibility of the owner to renew the certificate of zoning compliance prior to expiration by submitting updated information to the department of codes compliance.
f. A short-term rental certificate of zoning compliance may be revoked by the zoning administrator as set forth below. An owner whose short-term rental has been revoked pursuant to this paragraph, shall not be eligible to obtain a certificate of zoning compliance for two years:
i. In the event there are three or more violations recorded by the city within a one year period; or
ii. For failure to comply with the regulations set forth in this section; or
iii. For refusal to cooperate with the city in a complaint investigation, including allowing the zoning administrator or his/her designee to
enter the dwelling unit upon reasonable advance notice as permitted
under section 45-3501 (a); or
iv. For delinquency in the payment of real estate taxes, nuisance charges, utility fees or any other charges assessed by the city against
the short-term rental property.
2. That this ordinance shall be in effect on and after the date of its adoption, June 28, 2022.
- Virginia Beach, VA · Member since 2017 · 68 posts · 26 votes4y
Quote from @Dezmon Robertson:
What makes the area unique to invest in is the fact that you have a vacation destination combined with a very large military presence that attract tons of visitors. You also have colleges, hospitals, and corporate offices that keep demand flowing throughout the year. Demand does fluctuate from the summer to winter months, but the data shows that the top properties still have high occupancy during the slowest parts of the year. Some homeowners are satisfied with churning high profits during the high season and going month to month during the winter, and that's why you see that strategy with some properties. The best investment strategy to maximize your ROI will be to furnish and manage your property in a way that will still attract during the slower season. Airbnb is just one of many platform to use to advertise your properties to make sure you can keep demand maximized.
As far as choosing the right property, you need to be very sure you qualify for a permit. Not all of the city's requirements are listed on the websites. Little nuances, like specific caveats in the zoning, will make a property that seems clear cut in compliance get disapproved during the zoning review. We get our contacts at the city involved for preliminary approval before our homeowners have any contracts signed, and I would encourage you to be that careful before you buy to make sure you can actually run a legal STR.I hope this helps!
@Dezmon Robertson Can you share the nuances and caveats that are not listed on the city's websites?
- Member since 2022 · 10 posts · 3 votes4y
Hi Riley,
I'm new to the area as well, as well as new to real estate great thread. Are there any meetups planned for the area? Seems like. there's a lot of nuance to the Norfolk area. For me multi families make a ton of sense.
- Real Estate Agent · Culpeper VA · Member since 2022 · 8 posts · 9 votes4y
Quote from @Iqral La rode:
Hi Riley,
I'm new to the area as well, as well as new to real estate great thread. Are there any meetups planned for the area? Seems like. there's a lot of nuance to the Norfolk area. For me multi families make a ton of sense.
I’ve looked into a couple, would love if someone seeing the thread would share more info on meetup. But that’s awesome Iqral would love to connect and navigate through this!
- Virginia Beach, VA · Member since 2017 · 68 posts · 26 votes4y
@Iqral La rode @Riley Harrison Look for Hampton Roads Investor Group, PREIA, TRIG, and Hampton Roads Landlord Association. All of these are on Meetup and Facebook groups.
- Member since 2022 · 10 posts · 3 votes4y
Quote from @Joseph Harr:
@Iqral La rode @Riley Harrison Look for Hampton Roads Investor Group, PREIA, TRIG, and Hampton Roads Landlord Association. All of these are on Meetup and Facebook groups.
Thanks. I'll look these up ! Virginia Beach seems like a great area for STR, did you utilize BRRRR for your Airbnb out there ?
- 4yJacob SloopBusiness MemberRental Property Investor · Virginia Beach, VA · Member since 2020 · 274 posts · 111 votes
As the others have said be very careful in verifying that STR is allowed at the property you are considering. Would also suggest that you make sure it works a long term rental in the event the ordinance changes.
Something to note... STR is NOT the same as being a landlord, you are in the hospitality business. If you don't have a sizable amount of time and energy or a good property manager that specializes in STR you can easily get overwhelmed. This can lead to bad reviews which are the life blood of a profitable STR
On a positive note! I know lots of people in the area that do great with this strategy, we attract ALOT of visitors from either the navy base, business, health care and/or tourism.
- Virginia Beach, VA · Member since 2017 · 68 posts · 26 votes4y
Quote from @Iqral La rode:
Quote from @Joseph Harr:
@Iqral La rode @Riley Harrison Look for Hampton Roads Investor Group, PREIA, TRIG, and Hampton Roads Landlord Association. All of these are on Meetup and Facebook groups.
Thanks. I'll look these up ! Virginia Beach seems like a great area for STR, did you utilize BRRRR for your Airbnb out there ?
@Iqral La rode I used a VA loan to buy a turnkey house for myself to live in while I Airbnb the rooms. It's a single family house near the beach but I pretty much turned it into a duplex. In VB, if you live in the house as your primary residence, you can STR and it's considered a "home share." You still have to register with the city and get a business license and pay city taxes on your STR income.
If you don't live in the house, you can STR it if it's in the resort overlay district (which my house is a few houses outside the border of that) or Sandbridge or if the house was grandfathered in by being registered with the city and paying taxes prior to the rules being created in 2019 I wanna say.
Last year when I started my Airbnb listing, the city sent me a letter saying I was in violation and operating an unauthorized Airbnb. I had to show them that it was my primary residence and they closed my file. But apparently they do enforce these rules and if I ever wanted to move, I'd have to shut down that operation.
Fun fact though, my next door neighbor is an STR house because it was grandfathered in. The house is nearly identical to mine, same size, builder, age, etc. This 3/2.5 house was being rented for $600 per night in the summer last year and it was booked 100% of the summer with no vacancy. I wish I could STR my whole house! I do get $600+ for some nights for just half my house though.
- Member since 2022 · 10 posts · 3 votes4y
Ahhh those are insane numbers, I'd eventually love to get into STR in VB as part of my strategy, definitely need to build up more capital first but always on the lookout for a good deal.
- Virginia Beach, VA · Member since 2017 · 68 posts · 26 votes4y
Yeah it's a higher risk/higher reward/higher work (unless you use a manager) than long term renting. I started off wanting to be a buy and hold traditional rentals kind of guy but when I started looking a few years ago, prices already seemed too high for anything to have positive cashflow. It seemed like you either gotta get stuff off market or go into less desirable areas. STR seems like the best way to go nowadays. Just my opinion anyway. But if you do decide to invest in an STR in VB, just make sure you get one that is or can be legal. It's an expensive market too which is another potential barrier to entry.
- Member since 2022 · 10 posts · 3 votes4y
Yeah totally, I plan on watching the Think Real Estate fb live to learn more about the STR world.
- Member since 2022 · 39 posts · 8 votes4y
Quote from @Christopher Rawlins:
Me and my business partner are also just looking into the Norfolk area. More like New Port News, VA but close enough I guess. We have a little experience down in FL but the market is so hot we're shifting focus to VA.Any help would be great.
Hey Chris, If you are still interested I am the CFO for a fix and flip company that does alot of work in the newport news area. Shoot me a DM and we can put you on our investor list when properties come up.
Hampton Roads is very unique in that the feel of the neighborhoods can change quickly depending on the street or clusters of homes despite being in the same zip code. It's a place I highly recommend driving around in-person in order to determine if the homes match up to your desired tenant base. We bought our first home (owner occupied) in a neighborhood in Hampton when initially I had been looking in Norfolk and parts of Portsmouth. If you are looking to attract LTR/families I can suggest where I live in addition to Hilton Village in Newport News. Both areas are in proximity to desirable elementary schools and close (20 minutes or less) to child-friendly beaches and downtown areas.
- Investor · Hampton, VA · Member since 2022 · 11 posts · 3 votes4yHI Joseph, Im looking to investment in NN or Hampton. Do you know if NN allows STR or MTR of 30 or more?
Quote from @Joseph Harr:
For Norfolk I'd do a short term rental like Airbnb, which is what I'm planning to do next. I'd like to get a place in Oceanview near the beach. Norfolk actually allows STRs and has a process in place to register with the city and pay the taxes and such. Newport News doesn't allow them at the moment (unless the house is also your primary residence that you live in) so we just hope nobody complains and shuts us down. Long term rentals could work in either city but I like to chase the big Airbnb money.
Thank you!
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