by Barker Realty, Inc. | May 5, 2020 | Barker Realty, Property Management Blog, Tenant Acquisition, Tips for Landlords
Once you’ve purchased your Raleigh investment property, signed all the paperwork, and made all the renovations and touch-ups you desire, you’re doubtlessly eager to start filling up rooms with tenants. However, don’t let your enthusiasm cloud your vision. Taking the time to find responsible, respectful, gainfully-employed tenants will save you a lot of headache and money in the long run, even if it means you have to sacrifice a few rent checks now. Below are the 3 most important tenant screening tips to follow, from our Raleigh property management team.
Always Require an Application
An application seems like a pretty basic no-brainer, but you’d be surprised at the number of property owners who forgo this simple step. Make no mistake: ex-tenants with troubled rental histories are out there, looking for a new place that won’t thoroughly investigate their past. An ideal candidate should have no issue with submitting an application and waiting for approval.
Always Run a Credit Check
The best way to gain insight into a potential renter’s payment habits is to review their credit activity over the past seven years. Even if a prospective tenant has a strong credit score right now, they may still have missed payments on a previous property. Of course, making a mistake in the past shouldn’t exclude someone from moving forward—but that’s a decision you need to weigh with full understanding of the risks involved.
Always Run a Background Check
Again, this is another basic protocol that shouldn’t even bear mentioning, but again, we hear of so many property owners in our industry who forgo it! No matter how nice a prospective tenant seems or what their story is, it’s important to always run both a background check and criminal record check on them. Again, you don’t have to scrap an application for someone who has simply made a mistake or two in the past—but you do need to be fully informed of what you’re getting into.
Need Raleigh Property Management Help? Call Barker Realty!
Most property managers who forgo these three tips aren’t stupid—they’re simply pressed for time, and don’t have the resources to devote to proper tenant screening. If this description applies to you, consider working with a Raleigh property manager who can handle tenant screening and other tasks for you. A bad tenant can easily cost a property owner thousands of dollars in damages, legal fees, and other costs, so having a good property manager on your side is well worth the investment! To learn more about us and what we do, please click here.
by Barker Realty, Inc. | Apr 28, 2020 | Apex Investment Property, Cary Investment Property, Investment Property Blog, Raleigh Investment Property
On the surface, renting out investment property can seem like a dream: instead of toiling away all day in an office, you can kick back, contract out all the tough stuff, and rake in your rent dollars at the start of each month. We sincerely wish it were that simple! Unfortunately, the reality of property investing is that it’s as challenging as anything else. And, like anything else, your success depends on a number of factors, both within and outside your control.
The short answer? Yes, you can make money on rental property. As long as…
You Buy in the Right Place, at the Right Time
What qualities make a good rental property? Well, we’ve dedicated a whole blog to answering that question; but to make a long matter short, it’s all about location. A great investment property should be within driving distance of schools, shopping centers, grocery stores, hospitals and other amenities. It should also be in good repair; have reasonable property taxes; and have a low crime rate. The property you choose will be half the battle when it comes to making a profit, so be sure to work closely with a property management company or realtor with substantial industry experience. Timing matters, too: if you buy near the bottom of the housing market, your properties will likely increase tremendously in value.
You Have—or Can Build—an Emergency Fund
Furnaces; air conditioning units; roofing; sump pumps; pool repair. That’s just a very small list of things that you may have to fix at one point, which individual tenants aren’t responsible for (and which therefore can’t be paid for with security deposits). Now, in an ideal world, if you are charging high enough rents and spending as little as you can, you should have enough left over from your profits to cover big repairs. But since we’re not living in an ideal world, it’s likely that the repair money will have to come from your own pockets. That means that you’ll need to have an emergency fund already set up by the time you purchase your first property—and you’ll need to be the type who is budget-savvy and budget-loyal. If you currently love shopping and spending, that will have to change if you want to be a profitable landlord.
You Can Set Firm Rules and Stick to Them
Not only will you have to be firm with yourself, you’ll have to be able to be firm with your tenants—no matter how nice or forgiving you want to be. Unfortunately, some people will take advantage of temporary kindness for weeks, months, or even years until you work up the courage to put your foot down. A good landlord needs to be able to enforce rules in a non-confrontational, yet assertive way. If you struggle with doing that in your day-to-day life, you will probably struggle as a landlord.
You Approach Property Investment as a Job
We have been working in the Raleigh property management industry for over 30 years. What we see again and again in clients who are ultimately successful is that they approach property investing as a job, not as an escape from one. Even with the help of a property management company, being a landlord is a 24/7 commitment. Just like pursuing an expensive education, it’s a long, tough road with a big payoff—it’s not the “easy way out!”
For that reason, you will need one more quality to become a successful landlord: optimism. If you can’t weather ups and downs with courage and calm, you’re better off staying at a safer harbor.
by Barker Realty, Inc. | Apr 14, 2020 | Property Management Blog, Raleigh Property Management, Tenant Management, Tips for Landlords
Though we are only a few months into weathering the coronavirus pandemic, it has effectively changed life as we know it. Below are some tips that can help you maintain a positive landlord-tenant relationship during these tough times.
Remember That You are a Leader
First things first: remember that, to your tenants, you are in a leadership position. You control one of the most important aspects of their lives—their housing—and that means that, like it or not, you are a voice in their community that they will turn to for guidance and reassurance. Keeping this frame of mind will help you stop thinking of yourself as a victim on a sinking ship, and start thinking of yourself as a leader guiding the way through a dark tunnel. While you don’t have more answers than anyone else does, you can corral the troops, so to speak.
Inform & Reassure Tenants
If you have not already done so, send an email to your tenants alerting them to the measures and precautions you are taking to prevent the spread of COVID-19. You should also use this as an opportunity to assuage fears, open the lines of communication, and address tenant concerns. Let your tenants know that, though you have not yet finalized a plan for addressing rental defaults, they will not be kicked out onto the street overnight if they cannot make rental payments. If citizens start to think they might lose everything very quickly, it could result in mass hysteria, which will only negatively impact you (and everyone else in your community) even further.
Explore Your Options
As we stated above, there is no one blanket way to address the financial impact of the pandemic. The actions you take will depend on your city and state ordinances, personal feelings, budget, current tenant relationship, and estimation of the future. The important thing to remember is that you are not alone, and that every other property owner in your city is facing the same questions. Reach out to local housing committees and state housing boards to discuss your options regarding funding and rent collection. You might work with local and federal government agencies to help your tenants find aid; work out a repayment plan once the crisis is past; waive late fees; or take some other course of action.
Prioritize a Positive Tenant Relationship
Without knowing you personally, can’t tell you how to manage your financial situation amidst this crisis. But what we can tell you from our experience in property management is that good tenants are worth their weight in gold. If you have tenants who are pleasant to interact with, timely with rent payments, respectful of your property, and respectful of their neighbors, it might be financially worth more in the long run to keep them than to replace them. “Good tenants” are actually saving you a lot of money in property damage repair, pest extermination costs, cleaning and trash pickup, and more; whilst bad tenants can often be an endless hole of frustration and lost revenue. For these reasons, sending out a panicked letter stating that you expect your rental payments come hell or high water might damage your long-term profitability more than it helps it.
Barker Realty, Inc. is a full-service real estate brokerage firm with more than thirty years of Raleigh NC property management experience. To set up a consultation appointment with one of our skilled representatives, click here.
by Barker Realty, Inc. | Mar 10, 2020 | Barker Realty, Raleigh Property Management, Tenant Acquisition, Tips for Landlords
Owning a Raleigh investment property is tough work. In addition to understanding the legalities of leasing and handling the property upkeep, you also have to make sure that every tenant is a responsible, respectful individual who won’t disturb the property or their neighbors. Unfortunately, this can be tricky to do in the best of circumstances, and when the tenants are the property owner’s friends, situations can quickly become murky. Below are some reasons why you should never rent to friends (or friends’ children).
It’s Impossible to Maintain a Professional Relationship
Tenant-landlord relationships should be, first and foremost, professional. As the owner of a Raleigh rental property, you are responsible for setting the rules, and your tenants are responsible for following them. When you rent to a friend, you’ll find that the professional boundary gets muddled. Your pal might ask for leniency and special allowances that you wouldn’t grant another tenant, or take advantage of your relationship to ignore rules of the rental agreement. On your part, you will start to feel resentful and taken for granted, which leads us to our next point:
It Could Cost You Your Friendship
You probably like your friend a lot; after all, that’s why you decided to rent to them! However, renting to a friend starts you both down a path that leads to nothing but disaster. If you and your friend run into disagreements about the lease and the property, your entire friendship may suffer. Your friend may feel resentful that, despite your good relationship, you are refusing to cut them some slack; you may resent that they are taking advantage of your history to skirt the rules. At the end of the day, this can cause a serious rift that will last long after the lease period is over.
In The End, You’re The One Who Has to Pay
If your rental agreement states that no pets are allowed, and your buddy thinks you’ll be fine with his German Shepherd because you go way back, you’re the one who’s going to be left cleaning up the mess on the floor. Your friend can simply hop-skip to another property—hopefully one that’s less tolerant of his behavior—but as the landlord, you don’t have that option; you will either have to make repairs and restorations that his security deposit doesn’t cover (if he had one). Rather than run the risk of a ruined apartment and a ruined friendship, you’re better off adhering to one simple rule: no friends allowed.
Get Quality Help from a Raleigh Property Management Company
Being a landlord is tough enough as it is; you don’t want to add to the pile by putting a couple of your closest friends under a roof that you manage. Fortunately, there are plenty of tools at your disposal to help you find responsible, clean, polite tenants. A Raleigh property management company such as Barker Realty can help you vet tenants, take care of their issues; manage their rental payments, and much more. To schedule a meeting with one of our incredible property managers, please click here.
by Barker Realty, Inc. | Mar 10, 2020 | Barker Realty, Property Management Blog, Property Management Company, Tips for Landlords
There’s no doubt that these are stressful times for everyone, especially landlords. With so much economic uncertainty, it can become easy to become overwhelmed by fears and anxieties. Before you do, though, take a moment to step back, breathe, and refocus. Recognize that your tenants are depending on you to provide some sense of leadership and direction, since you are the one in control of their home, and becoming overwhelmed is bad for them and you. Below are some stress management tips for landlords which can help you help you keep calm and carry on during this, and other, crises.
Manage Your Media Intake
While it’s good to stay informed about the latest developments surrounding the Coronavirus, being too informed does little good and a lot of harm. As terrible stories continue to emerge from Italy, New York, and other epicenters of the pandemic, you may find yourself submerged in misinformation and worst-case scenarios that paints a pretty black picture. Pay close attention to your emotions as you read the news, and step away if you start to feel overwhelmed. It may be necessary to stop consuming news entirely, or limit your consumption to a specific timeframe and duration each day (e.g., thirty minutes each evening).
Put Your Mind to Work
The mind is a very dangerous place to be during a time of crisis. Instead of sitting around and stewing in your thoughts, give your brain an assignment—any assignment. This can be as simple as completing a difficult crossword puzzle, or testing yourself on basic knowledge, like naming the capital of each U.S. state or the countries of Africa. It is very difficult—nigh impossible—for your brain to worry and solve problems simultaneously.
Make a Goal and Focus on Crushing It
If you find yourself out of work due to the pandemic, don’t fall into the trap of browsing the web and watching T.V. all day. Recognize that this is your chance, perhaps your only chance in a while, to tackle a big goal you never have time for, or take steps to come out even stronger once the crisis is over. If you have creative aspirations, try working on your novel, developing your body of work or learning a new craft or skill. If you have always dreamed of starting a side-business, put together a business plan, try your hand at building a website, research ideas for logos, and create social media pages. Always wanted muscular arms, or a six-pack of abs? Now’s your chance to make it happen!
Practice Grounding Exercises
Much has been written about mindfulness and breathing techniques when managing anxiety, but one less-popular technique, which is often much more effective, is that of mental grounding. When things get tough, simply take out a piece of paper and record all the physical details of your surroundings: the number of tiles in the floor or ceiling; everything you can see from your window; the precise color of each object in your line of vision. Since your brain cannot focus on the external world at the same time as your internal dialogue, this helps quell panicked emotions and reaffirm that, while some things feel out of control, everything around you is still here.
Stay Strong – And Come Out On Top
Aside from staying indoors and practicing social distancing, there is very little landlords can do to bring the Coronavirus pandemic to an end. What we can do is let our tenants know that we are here for them; that we will work with them as best as we can; and that we are taking steps to keep the property safe, sanitary, and secure. By being available, calm, and compassionate to our tenants’ needs, we stand to forge stronger, longer tenant relationships that will last long after this situation is past.
Barker Realty, Inc. is a full-service real estate brokerage firm with more than thirty years of Raleigh NC property management experience. To set up a consultation appointment with one of our skilled representatives, click here.
