by Barker Realty, Inc. | Jul 19, 2022 | Featured Article, Property Management Blog, Tenant Management, Tips for Landlords, Tips for Property Investors
It is easy for people to get a short-term lease in the digital age. However, there are a number of risks that are associated with subletting an apartment or house. Property damage, liability issues and stealing furniture are some of the many risks associated with subletting, which our team at Barker Realty works hard to avoid for our rental property owners.
The law can vary from place to place. However, people who are caught subletting can expect to pay a hefty fine. For example, the fine in Miami, FL starts at $20,000. There may be additional fines if you live in certain communities. Contact Barker Realty to get more information about potential fines in and around Cary, NC if you’re considering subletting to see if your community or lease agreement allows this change in terms.
How to Prevent People From Subletting with a Lease Agreement
There are several things that our Cary property managers can do to prevent subletting. The lease is a document that is legally-blinding. Many people try to sublet because it is not forbidden in the contract, however, Barker Realty highly advises that every rental property lease contain one or all of the following clauses.
No Subletting or Assignments
Renters shall not sublet or assign the premises. All tenants have to fill out an application and be approved before moving in. Renters are responsible for paying rent and any damage for the remainder of the lease term.
Invitees or Guests
If guests or invitees cause damage to the property, then renters are responsible for paying for the damages. Guests are not allowed on the property longterm without having a property manager’s or landlord’s permission.
Our experienced Cary property managers help prevent subletting by making this a clause in the lease agreement allowing the right to evict tenants who violate this agreement. Furthermore, it is a good idea to require that every tenant has renters insurance.
Work with a Reputable Property Management Company
Hiring the right property manager is one of the keys to avoiding this nightmare. They will put the best terms in their agreement, so tenants know that subleasing is not allowed. They will be able to clearly explain the ramifications of breaching the agreement and can enforce an eviction policy. Additionally, they will do periodic checks in order to ensure that no one who is not on the lease is living inside of the home.
Get in touch with Barker Realty, a investment and rental property management company based in Cary, NC to talk about our services or have us represent your property to give you peace of mind.
by Barker Realty, Inc. | Jul 5, 2022 | Investment Property Blog, Property Selection, Taxes & Financing, Tips for Property Investors
Benefits of Using a Property Manager for your Rentals
Investors in the real estate market typically don’t start out very big. Everyone has to start somewhere and most people end up living in the home before turning it into a rental after accumulating more financial resources. You have the opportunity to expand beyond owning a single property as a rental property investor to own and manage multiple homes.
Managing these properties includes maintenance, collecting rent, signing paperwork, and ensuring that the units remain occupied. If you’re investing in rental property as a secondary source of income, it might make more sense to work with an investment property management company to help with some of these tasks.
A good property manager represents their client’s interests well and can assist with screening tenants, ensuring the properties remain occupied and ensures fast repairs both during and in between tenancies. It’s crucial to stay in touch with your property manager for frequent updates and even driving by the properties themselves to see how they’re being maintained outside. Here are a few tips for investors thinking about hiring a property manager.
Long-term benefits
Don’t get too caught up in the short-term benefits of owning a rental property. There may be a few rough patches where you may need to spend more than you anticipated, but home values can increase over time. The potential for an increase in value is significant and typically less risky than other investments such as the stock market or savings account.
Stick with newer homes
Rental properties are a better investment if they’re on the newer side. Stick with houses that are no more than 20 years old to reduce repair and maintenance costs. You might need to repair the floors or paint the walls, but they aren’t as pricey as homes that are less than ten years old. If you want to do a complete and extensive renovation, feel free to buy a home that is 20 to 70 years old, but anticipate having to do significant structural, plumbing, or electrical work.
Contact us today if you are a rental property investor and think that you could benefit from hiring experienced Apex property managers to assist with your investment property management needs.
by Barker Realty, Inc. | Jun 21, 2022 | Local Property Management, Taxes & Financing, Tenant Management
It is not cheap to operate a rental property. The cost of operating a property goes up every year. Insurance rates, taxes and maintenance are some of the things that a rental property investor can expect to increase every year.
Our property managers often wonder whether they should raise the rent in order to cover the expenses. It is important to remember that raising the rent is not like asking for a raise. You cannot say that it is time for you to raise the rent because you have been there for three years.
Experienced property managers have to do a lot more than just send out a notice saying that the rent will be increasing. Your tenants may just move out. It can be hard for you to replace the tenants if the rent is too high and rental pricing should follow market value.
A rental property investor will have to decide whether it makes financial sense to raise the rent. You have to make sure that you will have to make an actual profit from raising the rent.
The rent increase has to cover holding costs for the next tenant. They also have to cover realtor commissions. You will also need to calculate repair costs and the changes that you will have to make before the new tenants come in.
For example, you currently charge $2,000 per rent. You increase the rent by $50 per month. You will only make an additional $600 per year. However, if it costs you $1,000 to make repairs and fill the vacancy, then you will not generate a profit.
It is important for you to not raise the rent above the current market value. Your current tenants will probably move out, and it can be difficult to fill the vacancy. You may find that you have to lower the rent in order to get a new tenant.
How to Tell Your Tenants About the Rental Increase
In many cases, it just makes sense to raise the rent. It is not based on the cost of insurance, maintenance or anything. The price is based on the market value. You will have to show the tenants that the increase is not due to your personal finances. It is due to market value.
Many tenants believe that property managers are rich and just in it for the money. That is why they are more likely to stay if they know that the rent increase is due to market value.
Want to know more about investment property management? Contact Barker Realty anytime.
by Barker Realty, Inc. | Jun 7, 2022 | Property Management Blog, Property Management Company, Property Selection, Tips for Property Investors
There are many people who are interested in investing in rental property as it can be a great financial move for a variety of reasons. Not only can investors make money off of monthly cash flow from the collected rent, but there is also financial benefit in the equity appreciation build-up over time. You are essentially having someone else pay your mortgage and insurance on a piece of property that can retain value or appreciate, especially in the Durham-Triangle market.
At Barker Realty, our property management company highly recommends conducting research before investing in real estate in your area to make sure it will be a great fit for your business or you personally. Talk with others. Talk with experts. Learn as much as you can about how investing in rental property could be a game changer for you and your portfolio. Here are some tips to help you along the way!
Find a Rental Property
The best rental properties are in areas that are growing rapidly. The biggest predictor of future price appreciation in an area is the growth of the population. In addition, a growing population will have many renters who are willing to live in your property.
With the competitive real estate market, it may be difficult to find a rental property that meets your needs. You should look for a property that will produce positive cash flow every month. You need to plan out your expenses with the property and then look at what the home will rent for. Hiring property managers is part of the rental process. These costs need to be accounted for as well.
Financing
Real estate investors need to understand how to use financing options for their benefit. Financing is the best way to purchase a rental property if you do not have the cash to do so. Some real estate investors borrow too much money and get into financial trouble. Instead of doing this, borrow money in a conservative way. This will help you reduce the overall risk that you have in an investment.
Hiring Help
No one wants to answer calls in the middle of the night from tenants. Hiring property managers is the best way to reduce your stress while owning a property. You need to look at online reviews before making a decision on the company that you want to work with. You should work with a company that has quality customer service and support at all hours.
Rental property can help you get to the next level in your finances. However, be realistic with yourself. It’s not easy and it is not a way to get rich quickly, but it will help you build wealth over time when done the right way. With the strong housing market, now is a great time to look for an investment property in your area.
Contact Barker Realty today for more information about investing in real estate, rental properties and overall property management services.
by Barker Realty, Inc. | May 24, 2022 | Cary Investment Property, Cary Property Management, Featured Article, Property Management Blog, Property Management Company
Some real estate investors, particularly new ones, see hiring property managers or a property management company as an unnecessary expense. But, they can actually be a huge benefit to your income.
Here are four important reasons to hire a property management company to oversee your rental property:
1. Set the Best Rent for Your Property
You could spend hours, days, or even weeks scrolling rental listings to try and find comparable properties and the rent they’re getting. But a local real estate management company will have a good handle on the local market and be able to tell you how much to charge to ensure that you not only get quality tenants and low turnover but also get the most income out of your property. Plus, property management companies have access to professional sources such as MLS (multiple listing service).
2. Market, Advertise and Show Your Property
Managing your property alone you can spend hours every week crafting ads, fielding phone calls, text messages and emails about the property, and showing the home to prospective tenants. Unless the rental property is your full-time job, this takes time away from your family, work, and downtime. Property managers do this every day. They have the experience and knowledge to quickly create ads, and it is their full-time job to answer prospective tenant questions and show the home. This frees up your time, and also provides more flexibility to the prospective tenant, as they don’t have to work around your schedule.
3. Manage Vendor Relationships
Plumbers, electricians, appliance repair technicians – at some point, they’re all going to need to come to your rental property to repair or replace something, whether it’s through tenant damage or simple wear and tear. As a real estate investor, you’ll always get the same rate that any other private party would get. A property manager, however, may get a discount because they manage so many properties and can give an extensive amount of work to the vendor. You’ll save money and get high-quality repairs through vetted vendors.
4. Ensure Compliance with Housing Regulations and Property Laws
As a real estate investor, you likely did your research before you started. But the regulations and laws can be exhausting, confusing, constantly changing and hard to read. A property management company will be thoroughly familiar with all the regulations and laws, and they will ensure that you comply with them all.
Give Barker Realty a call today to see how we can help!
