If you are interested in investment property management, then there are a number of factors that you will have to consider. The time of the year is one of the many things that a rental property investor takes into account to fine homes for ‘at-price’ or below list. Not to mention, much of the competition is off the market due to half of home purchases take place during the fast paced, over-priced spring and summer months.
However, studies have shown that people who purchase a home in October get a 2.6% fair market value discount. And those people who purchase a home in December and January get a 2% fair market value discount.
Fair market value discounts drop during the spring months. That is why the best time for a rental property investor to purchase property can be during the winter months. There are several other reasons why investors should buy property during the winter and our team helps explain a little more below.
Increased Demand During the Spring and Summer Months
Many people purchase homes during the spring and summer months. People who have families move during the summer months because they do not want their children’s school schedule disrupted. Competition increases when the demand increases. This increases property prices.
Most people are not interested in moving during the winter months. They spend time with their family during the holidays. They also do not have extra money for moving. This is why there is less competition. You will have fewer people to compete with if you buy property during winter.
Desperation
Decreased demand creates a problem with sellers. Many sellers are impatient and do not want to wait until the warmer months. That is why they are willing to decrease their prices. However, you have to be careful. Some sellers will sell property that is in poor condition.
Climate
Climate can change the way that a property looks. A property may look great in the summer, but it can look dull in the winter. Snow can hide the more appealing features of the home and make people less likely to buy, hence why sellers are willing to lower their prices in the winter.
Get in touch with our Apex property managers today for more information or to schedule a meeting with our team!
Many homes sustain extensive damage during the harsh winter months. Your Raleigh rental property, however, doesn’t have to be one of them. Prepare for the worst and avoid costly repairs with the following winter real estate maintenance tips.
Clean out the gutters
Leaves and debris can block water and allow it to pool. Then, when the cold hits, it freezes, causing your gutters to warp and crack. Therefore, be sure to clean your gutters one last time before winter comes. You may also want to disconnect and drain your garden hoses after doing so
Take time to insulate
An important aspect of winter property maintenance is insulating and sealing your home so that heat can’t escape. Be sure to caulk any holes in your walls; apply weather stripping to your doors and windows; and seal any seams. Make sure that you fully insulate your attic or basement as well.
Inspect and fix the roof
A key component of your real estate maintenance schedule should be roof inspection and repairs. You don’t want to discover a leaky roof in the middle of a heavy storm! It may also be a good idea to remove nearby tree branches that could fall and weigh down the roof’s surface.
Wrap up your pipes
A broken or burst pipe can cause extensive property damage. Insulation sleeves are a simple, affordable option that can help you avoid a disaster and overall headache. If you are a Raleigh property manager, advise your tenants to leave the faucets dripping overnight when temperatures sink below freezing.
Need Raleigh property management help? Call Barker Realty
These winter property maintenance tips can help you stay warm and cozy when storms come. If you need any help or assistance, Barker Realty and our sister company, Barker Property Maintenance, are just a call away. Our professionally certified plumbers, electricians and general contractors are always available to assist your residential, commercial, or rental property needs.
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 the classifieds to try to 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
Real estate investors, managing your property alone, 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!
Let’s run through an all too common scenario with real estate investors in the past…
You have a rental property worth $200,000, but you would like to sell it and buy a different one worth slightly more. The property will be used in the same manner as its predecessor. Usually, you would incur a tax liability from the net proceeds, leaving you with less capital for your intended investment.
That was until the introduction of the 1031 Tax Deferred Exchange that allows a real estate investor to defer capital gains tax liability, effectively releasing more money to you for investment. A full deferral means that you will invest the entire net proceeds in the exchange property, effectively dictating that the replacement be of equal value or worth more than the original.
Let us explain further…
What Does This Exchange Mean?
Section 1031 of Internal Revenue Service Code allows you as a real estate investor to defer your tax liability when you dispose of one property and invest in another of the same nature. The said property must be the used for trade to generate income.
What Are The Conditions For A 1031 Exchange?
The law states that the exchange property should be like-kind, meaning it should resemble the sale property in nature and character rather than quality. You can spread the net proceeds over one or more exchange properties.
Like-kind property considered in the deferral plan include:
Exchanging an unimproved property for an improved one.
Exchanging a single family rental unit for a multi-family one.
Selling a vacant piece of land to buy a commercial building.
Selling an industrial property to buy rental property in a resort area.
Personal property does not qualify for 1031 unless for productive use in business or trade.
In a full tax deferral, you are expected to invest the entire net proceeds in an exchange property.
Timelines
A real estate investor must adhere to strict deadlines if they are to benefit from this tax deferral plan. You should identify an exchange property within 45 calendar days of closing on of the sale property. After determining the replacement property, you should close the deal within 180 calendar days of closing the previous investment.
Practically, say you sold your property on January 1, 2017. The identification period ends on February 15, 2017, while the exchange period ends on June 30, 2017. If you fail to close the deal within that time limit, you lose your deferral privilege.
We are an experienced Raleigh property management company that would like to see you take advantage of this tax deferral. Talk with Barker Realty today for more information on 1031 Exchanges and managing your rental properties with ease!
Barker Realty proudly serves the Wake County area, including Raleigh, Cary, Apex, Wake Forest, Fuquay Varina, Clayton, Knightdale, Garner, Holly Springs, Zebulon, and Wendell.
At Barker Realty, we have been managing rental properties in the Triangle area since 1984. In 1996, Barker Property Maintenance Company was formed as a sister company to Barker Realty. While this is a separate company that functions on its own, it offers a quick and affordable resource for our property managers and the owners with which they work. Today, we would like to share a few ways we handle maintenance issues for our property owners.
One way to avoid large expenses is through preventative maintenance measures. At Barker Realty, we offer periodic maintenance services, such as gutter cleaning, filter changes, and annual service contracts for your heating and air conditioning systems. We also offer annual under-house inspections as well.
Property Maintenance Accountability
Through our maintenance company, we are able to provide more accountability to our property owners. Whether one of our staff technicians or a vendor is working on your home, everything we do is warranted by Barker Property Maintenance Company. Our technicians offer feedback and recommendations when they’re servicing your property, because preserving the condition of your property is important to us. When we work with an outside vendor, we require that they be licensed and insured. This provides additional protection for you and your investment.
Raleigh Property Management: Our Availability
Our maintenance team is available and accessible 24/7 for after-hour emergencies. One of our technicians will speak directly with your tenant and if possible, walk them through the remediation of the problem. This may mitigate any damage to your property and save you money on potentially expensive after-hours repair work.
