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 Raleigh-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.
A good property management company can help you find the right loan for you. Many people who work for a property management company have years of experience in the real estate field.
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.
Whether you constructed or bought the property you own, you understand how huge an investment it is. This is why you will spare no effort to ensure that your property is in good condition at all times. With regular property inspections throughout the year, you will not only ascertain the structural integrity of the building but will also have a chance to correct any defects in a timely manner so as to protect your asset. Even though you may have property managers, here are some other benefits of property inspections.
1. Documentation of Property Condition
Annual property inspections will give you a great opportunity to document lease violations at your property or unreported damage. By hiring a qualified professional to do the job, we will not only check for tenant damages but we will also assess the overall condition of the property.
2. Check & Improve Owner Liability
When you own property, regular inspections will help you be sure that your investment is safe and in good condition. Once you have had a professional property inspection done, you will easily establish whether appliances, such as smoke detectors & CO2 detectors, are in perfect working condition. As a property owner, you will have fulfilled your responsibility of a well maintained environment for all occupants of the building.
3. Avoid Deferred Maintenance
While your property management company may inform you of areas that need repairs and maintenance, there is a good chance that some specific areas will be overlooked. By addressing any structural issues in good time, you will not only avoid deferred maintenance and repairs but will also save a significant amount of money.
4. Validate Insurance Policies
In some cases, landlord insurance may demand that annual property inspections be carried out on your property. If you fail to do the inspections within the stipulated timeframe, you may risk losing coverage or getting the policy invalidated. This is why you should arrange for property inspections to comply with the requirements of your insurance policy.
5. Increase Tenant Retention
When you make sure that the structural integrity of your building is maintained, you will ensure that your tenants feel cared for. When they feel safe, this may help you to retain them, building a relationship for a considerable period of time. In the long run, you may enjoy higher and consistent return on your rental property.
Hiring a local Cary property management company like Barker Realty will also help to add value to your property. It is advisable to take time before settling on the property managers that will meet your needs. Contact us today to learn how we can help you enjoy the peace of mind that comes with property ownership.
Rental property management can be a lucrative profession and we get asked this question all the time. It is easy for you to make money from rental properties, but that all hinges on many factors to determine how much money you can make renting your property in Raleigh.
Calculate Your Income
The first thing that you will need to do is calculate your monthly income. You do this by multiplying the monthly rent by the number of houses or apartments that are being rented. For example, you charge $1,000 in rent and you own 3 properties, you will bring in $3,000 per month from the rent.
Calculate Your Expenses
You will have to calculate your expenses in order to make money from rental properties. Insurance, taxes, mortgage payments and a management fee to your management company are some of the expenses that you will have to take into consideration. You will also have to consider the cost of maintenance and other expenses, such as utilities and landscaping while vacant, capital improvements needed over the years, etc. Additionally, if you are a member of the HOA, then you will have to include those fees as well.
Total the Results
The money that you have left over, after you cover all of your expenses, will be your profit. Ideally, you should not only have enough money to cover your costs, but you should also have money left over that can come back to you directly to reinvest or save. If your expenses are making it difficult for you to make ends meet, then you may have to raise the price of the rent or find ways to trim your expenses. For example, you may want to shop around for a different insurance provider or other contractors potentially hired to help with upkeep on your property.
If you are looking for a Raleigh property management company that can handle your investment properties or you just want to speak with someone about your potential opportunity to rent your home or condo or building, then give our Raleigh property managers a call today.
