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. | Jul 18, 2018 | Cary Investment Property, Cary Property Management, Investment Property Blog, Property Selection
Regardless of whether you are looking for a single-family home, apartment or townhome, you will have to spend a lot of time looking at Raleigh rental property listings. You will also have to spend a lot of time visiting the places and talking to people who work in rental property management in Raleigh. There are several things that you can do in order to save time and money.
3. Details
Anyone who works in rental property management will recommend that you pay attention to all of the details in the listings. Pay attention to the floor plan, square foot, storage space and the number of bedrooms and bathrooms. Additionally, you may want to choose a place that is located near shopping centers, entertainment centers, and freeways.
2. Amenities
You will also need to pay attention to the amenities when you are looking through Raleigh rental property listings. Kitchen appliances and heating are not the only amenities that you should be looking for. Private outdoor spaces, ample storage, and in-unit laundry are some of the amenities that you may want your new home to have.
You should also look for shared amenities such as swimming pools, outdoor spaces and fitness areas.
1. The Costs
You will need to make sure that the landlord is clear on all of the costs. In addition to the monthly rates, you will need to pay a security deposit, and you are responsible for the utilities associated with your property. If you are bringing a pet with you, and your property allows it, you will have to pay a pet deposit. You will need to add up all of the costs in order to determine whether the price of the new place is feasible. Barker requires that your income be equal to or greater than 3x the monthly rent.
If you are looking for experienced property management in Raleigh, contact Barker Realty today to view one of our available properties.
by Barker Realty, Inc. | Oct 23, 2017 | Cary Investment Property, Cary Property Management, Local Property Management, Property Management Company
If you are seeking to hire a property manager, then you are undoubtedly wanting to save time on your investment properties or rental properties. There are several questions that you should ask rental property managers before you pick the company or person to hire. Asking the right questions will help you get the best Raleigh property management company. Here are 7 things to consider shared by the team at Barker Realty.
1. How Will You Market the Property?
Marketing helps potential tenants know about the property. The way a property is marketed will determine whether it stays full or has vacancies. There are numerous ways to market the property on the internet. The most popular places to market the properties are MLS, Craigslist, Zillow and their website in order to gain exposure to searchers for rentals. Think about the various ways property managers can reach people these days; online, mailers, yard signs, etc. There are many options to take into consideration.
2. How are Tenants Screened?
You have to carefully select your tenants or have your tenants selected on your behalf. You need tenants who will make timely rent payments and keep the property in good shape. If tenants are thoroughly-screened, this can help you avoid a lot of headaches in the future. You should feel confident that your property manager will implement thorough due diligence in the application process. Ask about the systems that are used to check background, credit and rental history.
3. How Close is the Office to Your Property?
If your property manager has an office that is close, then that will make things more convenient for you for meetings and communication. You need someone who can take care of problems even if the problems occur after hours or over the weekends/holidays.
4. Will You Explain the Process to Me?
A good property manager should be able to confidently and concisely explain everything to you in a way that you can understand. You do not want to hire someone who cannot explain what they are doing or are unsure with how to handle a specific situation that can and most likely will arise with tenants from all walks of life.
5. How Do Property Managers Charge for Repairs?
Some property managers will up-charge a fee for any repairs. Others will take a percentage of the repair costs. You need to inquire about this before you hire and get in writing within your respective agreements.
6. Will I Be Charged When the Property is Empty?
You should find out whether you will be charged a fee when the property is empty. You should also ask if you will be charged if the tenant does not pay rent.
7. What Other Fees Will I Be Charged?
Identify your total cost for hiring any rental management company from small to large costs, setup, or ongoing fees. Your property manager should explain the fees to you in detail and again, get everything in writing through an agreement. It will be worth it in the long run and if you plan to expand your investment property portfolio.
Barker Realty will be able to answer any and all questions you may have about property management and all of the minute details that accompany it. If you are interested in a Raleigh property management service like Barker Realty, contact us today for more information or to schedule an appointment.
