by Barker Realty, Inc. | Jan 7, 2020 | Investment Property Blog, Property Management Blog, Property Selection, Tips for Property Investors
The days of real estate investors traveling from neighborhood to neighborhood on the hunt for housing opportunities are long gone. Nowadays, buyers don’t have to confine their search to just one city or state—in fact, some buyers will purchase a property in another state, without even setting foot inside. While we aren’t advocating for this particular strategy, we can’t help but get excited about a world that is truly a property investor’s oyster. Below are some of the most promising cities to add to your search in 2020.
Atlanta, Georgia
Google, Microsoft, Coca Cola and Verizon are just a few of the major corporations that have recently expanded their presence in Atlanta. Known as one of the largest tech hubs in America, Atlanta’s business-friendly climate and relatively affordable housing environment continue to attract startups and established companies alike. As more and more players enter the market and create job opportunities, Atlanta’s single-family rental market is expected to see steady growth. By the numbers, single-family home appreciation was very strong last year at 13.1%.
Raleigh, North Carolina
Massive educational institutions and a flourishing technology center have long made Raleigh an excellent opportunity for real estate investors, and the latest reports show that this trend will continue in 2020. In the first half of 2019, financial investment activity in Raleigh reached $385 million, and the city boasts more than 89,000 tech jobs. In fact, on the list of biggest technology hubs in the U.S., Raleigh ranks #3, just behind Silicon Valley and San Francisco. All of this means that 2020 real estate investors are guaranteed a good rate of return on a Raleigh rental residential or commercial property.
Orlando, Florida
Thanks as always to its steady Disney World traffic, Orlando is expected to report another high watermark in tourism this year. Hailed as America’s most-visited city, Orlando is a great market for rental property, due to the high percentage of leisure- and hospitality-sector jobs. Key metrics to watch include an annual population growth of 2.4%, and a forecasted household growth of 3.4%.
Jacksonville, Florida
Steady population growth in Jacksonville, particularly from retirees who have the luxury of discretionary income, have helped Jacksonville become one of the most promising real estate markets in the U.S. Sandy beaches, championship golf courses, and historical military attractions draw tourists to the area year-round, and make it a reliable investment for property investors to bank on. Jacksonville experienced 3.7% rent growth in 2018, and household growth is forecasted at 2.1% in 2019.
Looking for Investment Property in Raleigh NC?
When you’re considering purchasing rental property in Raleigh, an experienced property management company can help you make the best decision! And once you have made your investment, we can help you manage tenants, rent, property maintenance, and more. If you’re ready to become a Raleigh landlord, call Barker Realty today.
by Barker Realty, Inc. | Dec 24, 2019 | Property Management Blog, Repair & Upgrades, Tenant Management, Tips for Landlords
Owning a Raleigh investment property has a lot of advantages. It’s one of the easiest ways to earn a significant amount of income, without much stress or hassle (that is, so long as you’ve got a property management company to handle all the day-to-day paperwork and upkeep.)
However, it’s undeniable that there are some occasions when being a landlord can definitely be a headache. One of the worst situations landlords must sometimes face is that of a hostile, angry tenant who destroys the property as revenge against perceived slights (like eviction proceedings.) In today’s property management blog, we discuss what to do if you are ever in this situation. Keeping a cool head and following these tips will go a long way towards getting your property fixed and your money back.
Document Everything
The first step is (literally) assessing the damage. If the tenant still lives in the property, you are legally required to give him or her a 24-hour notice before entering the unit for an inspection. You can easily do this by posting the notice on the door. When you inspect the rental unit, take clear, well-lit, time-stamped pictures of all the damage. It’s also a good idea to take a video camera and film every inch of the investment property, even parts that are undamaged, in case the tenant adds more.
File a Police Report
Your next step is contacting your local police department to report the incident. The police report will be invaluable supporting evidence in court. Be aware that calling the police to file a report is not the same as arresting the tenant for illegal activity. However, if the damage is significant enough and numerous valuable items were stolen, the police may also consider it a criminal case and file charges.
Gather Bids for Repairs and Make Them
If your tenant has already been evicted, it’s a good idea to get the property tenant-ready as soon as possible to minimize your financial costs. Make sure all your documentation is saved and backed up to a secure server, and then invite contractors to provide repair estimates. Keep copies of the bids and subsequent invoices for your court case. If the damage is extensive enough, your insurance might be able to cover some of the costs as well.
Deduct Costs from the Security Deposit
In an event like this, it’s likely that the cost of repairs will exceed the amount of the deposit. However, you are still legally required to send the tenant an itemized list of repairs with the corresponding cost deducted from the deposit. The form you must fill out is called a Security Deposit Disposition form. Under North Carolina law, a landlord must return the tenant’s security deposit along with the disposition form within 30 days after the tenant has moved out.
Seek Legal Help
At this point, it is time to seek legal action. Usually, you will need to file a lawsuit in civil court seeking compensation for the cost of repairs of the damage. It is advisable to hire an attorney to help you with this action.
Avoid Bad Tenants with Raleigh Property Management
Unfortunately, there isn’t much you can do to avoid situations like this once they are already happening—but you can take steps to mitigate the chance of them happening in the first place. Purchasing an investment property in a safe neighborhood; carefully vetting tenant applications; and developing strong, positive relationships with tenants can all go a long way to keeping your property safe and secure. And the easiest way to do all that is hiring a Raleigh property management company to help and advise you! If you need help finding or managing investment property in Raleigh, call Barker Realty Inc. today, and we’ll be happy to get you started on the right track.
by Barker Realty, Inc. | Nov 19, 2019 | Property Management Blog, Raleigh Property Management, Tenant Management, Tips for Landlords
This blog is the second half in our two-part series, “Understanding Evictions.” In our previous post, we discussed steps Raleigh property managers should take early on in the eviction process. We observed that most tenants opt to change their ways (or more commonly, pay owed rent) before the matter goes to court, since a bad court record can hurt them in the future. However, some cases do make it to court, and these are the ones we will discuss today.
After Delivering the Eviction Notice
Once you have delivered an Eviction Notice, you will have a waiting period, which should be stipulated in your lease agreement. It is usually between 10-30 days, depending on your location. The waiting period is just that–waiting for the tenant to respond or take action. If your waiting period passes without any sign of change, it will be time to file the eviction with your local court.
Formally Filing an Eviction
To file an eviction, you will have to go to your local courthouse in person and pay a fee. You will also likely have to present a receipt from the post office to prove that you have allowed the requisite amount of time to pass after sending the eviction notice. If all is as it should be, the clerk of court will schedule a time for a hearing. A summons will be sent to your tenant on your behalf; there is no need for you to do anything.
Preparing for the Hearing
As the date of your hearing approaches, gather all related documentation and proof of your claim, including:
- Lease agreements
- Bounced checks
- Records of payment of any kind
- Records of the communication between you and your tenant (phone and email)
- A copy of the written notice that you provided your tenant
- Dated proof that the tenant received the notice (this can be a receipt from the Post Office)
Remember to get some sleep the night before your scheduled court date so that you are attentive during the hearing. Always be honest, and let your documentation/evidence speak for itself.
Evicting the Tenant
If all goes well in court, the eviction will be granted and the tenant will be assigned a set amount of time to leave. This can range from 48 hours to a week. If your tenant does not leave by the deadline, you will have the right to have them and their possessions escorted out by law enforcement.
Collecting Back Rent
If the eviction was financially motivated, your next priority will be collecting past-due rent. Some courts will allow you to combine the eviction with a small claims lawsuit, as long as the two cases are related. If this is the case, you can sue for back-rent at the same time as the eviction case. If your local court does not allow this, you’ll have to file a separate small claims lawsuit to pursue the owed rent money.
Protecting Yourself in the Future: Hire a Raleigh Property Management Company
Evictions can be time-consuming and costly—up to $5,000 per tenant! The best way to avoid them is to gathering as much information as you can about potential tenants before they move in. Our experienced Raleigh property management company can thoroughly screen rental applicants so you can rest assured you are receiving high-quality, trustworthy tenants. To learn more about Barker Realty and what we do, click here!
by Barker Realty, Inc. | Nov 5, 2019 | Property Management Blog, Raleigh Property Management, Tenant Management, Tips for Landlords
No matter how thorough your tenant screening process, the fact of the matter is that screening only filters out tenants who have already built up a bad history. It’s rare, but possible, that a tenant with a clean background check, strong credit history, and good references will start to go South, for the same reasons that we all slip up in life. In some cases, you and your tenant might be able to come to an agreement. If not, you may find yourself with an eviction on your hands.
While evictions are costly and stressful, they are a natural and normal part of property ownership. They are also often the best way to protect your investment and yourself. Between property damage costs (such as exterminating an infestation) and opportunity costs (angry neighbors discouraging other tenants from renting), keeping a bad tenant can ultimately be much more expensive than an eviction. Below is a brief walkthrough of the eviction process for Raleigh investment property managers.
Understand Local Eviction Laws
Firstly, review the tenant eviction laws as they pertain to our state. You should especially review the The Uniform Residential Landlord and Tenant Act (URLTA), which provides a more detailed explanation the eviction process. If your lease agreement was drafted with state laws and URLTA in mind, it is probably within your rights to evict someone, under appropriate circumstances.
Do Not Take Any Actions Without a Court Order
It is very important to understand that certain actions are illegal in every state, no matter how much the tenant is damaging your property or infuriating the neighbors. You cannot legally do any of the following:
- Remove the tenant’s property from the unit
- Hire someone to physically remove the tenant
- Change the locks while the tenant is away
- Shut off essential utilities, such as electric, gas, and water
- Do anything to encourage the tenant to leave (i.e. release spiders into the basement)
In order to perform a legal, by-the-book eviction, you will need to prove to the judge that you are an upstanding, law-abiding citizen. Be patient, and follow the process. The more lease agreements the tenant violates, the easier it will be to evict them.
Make Sure Your Reason for Eviction is Valid
Typically, the following reasons are sufficient for an eviction, provided the tenant has been given fair notice:
- Failing to pay rent
- Violating the lease/agreement (allowing pets, subletting, etc.)
- Causing significant property damage
- Breaking noise, occupancy, or health ordinances
- Causing health or safety hazards
Remember that you will need documented proof of any claim you make against your tenant.
Give the Tenant a Formal Eviction Notice
One of the most important steps in the eviction process is to provide adequate Eviction Notice. This is usually a simple document that informs your tenant that they are being evicted; why this is the case; and what they can do to avoid the eviction (pay rent, clean up the property, etc.) You can make things easier on yourself by using this North Carolina-specific template. You must both tape the Eviction Notice to the tenant’s front door, and mail it to them via the US Postal Service.
Still with Us? Check Out Part 2: Going to Court
The majority of evictions end here, with the eviction notice, as most tenants do not want to go through the struggle of court procedures. However, if a week or so goes by with no noticeable change, it will be time to file the eviction with your local courts. For guidance on how to do this, check out Part 2 of our series.
by Barker Realty, Inc. | Oct 29, 2019 | Property Management Blog, Property Management Company, Safety & Security, Tips for Landlords
Before the sugar high hits and the creepers come a-crawlin’, there are few steps Raleigh property managers should take in order to give their residents the safest, happiest Halloween possible. Below are a few Halloween safety tips for landlords and rental property owners!
Invest in Good Lighting
We have mentioned a few times before how important it is to invest in bright, high-quality for your investment property. Good lighting will help residents stay safe on pathways, steps, and entrances, and provide a feeling of security while they are journeying to their car, the mailbox, the pool, or the trash area. If you haven’t already set up good lighting, now’s the time to do it!
Clear Common Areas
Halloween night will no doubt see a lot of excited, sugar-crazed children in bulky costumes returning from trick-or-treating fun. Before the night arrives, do a quick safety scan for debris, trash, fallen branches, holes, and any other tripping hazards. It’s better to be safe than sorry!
Advise Tenants to Keep Pets Inside
Even the most well-behaved pet can become anxious amid all the chaos and hubbub of Halloween night. Combine that with a lot of strangers in scary costumes–which your pet probably doesn’t consider a costume–and you have a recipe for disaster. Advise your tenants to keep all pets inside on the 31st to protect trick-or-treating children and other residents. In addition, remind your tenants that cats, especially black cats, can become targets of unscrupulous neighborhood hooligans on Halloween night, and should therefore be kept safely indoors.
Distribute Fire Safety Reminders
Finally, take into consideration the plentiful candle-lit decorations and Jack-O’-Lanterns that will likely be scattered throughout your rental property on Halloween, and decide what you would like to do about these sources of open flame. You might want to impose a ban on open-flame decorations altogether, requiring electric tea lights instead. Or, you could just take this opportunity to remind residents about proper fire procedures. Regardless of your open flame policy, have your property management team verify that all smoke alarms are in working order before the festivities occur.
Investing in rental property doesn’t have to be scary with Barker Realty!
Sending out tenant reminders; cleaning up your property; replacing burned-out bulbs; checking smoke alarms: all of these things take time. If you’d rather spend that time on other commitments, call our Raleigh NC property management company. Our experienced property managers can help you secure the right Raleigh investment property, and then keep it running like clockwork. That way you can insure that your investment has no tricks, and all treats!
by Barker Realty, Inc. | Sep 23, 2019 | Property Management Blog, Tenant Acquisition, Tenant Management, Tips for Landlords
Almost all investment properties include a criminal background check, credit card check, landlord reference check, proof of employment, and eviction report in their tenant screening process—and these are all musts for you, as well. By asking just a few simple questions, you can separate the wheat from the chaff and only allow qualified renters to sign a lease. Below are key questions to ask when screening tenants for your Cary investment property.
-
What date would you like to move in?
This is one of the best preliminary tenant screening questions, because it quickly establishes whether or not you and your applicant will be the right fit for each other. Perhaps you have a vacancy that needs to be filled immediately, but your potential tenant can’t move in for another month or so. Or, perhaps the applicant is looking for somewhere to live immediately. It you determine up-front that your property won’t work out for each other’s timeline, you’ll save yourself significant time and hassle.
-
How long have you lived in your current home?
It’s smart to ask potential renters about the duration of their past and current residencies. If they seem to lack stability, hopping around from property to property, chances are that they’re likely to do the same to you, leaving you with a vacancy to fill. Keep in mind, though, that this behavior is more typical for recent graduates and young professionals, so it is not always necessarily a red flag.
-
Why are you moving?
This simple, yet mighty question could help to reveal a tenant’s past issues which they will bring to the new property. Ask tenants what bothered them about their previous living situation, and note how they communicate their frustration. If your very first interaction with a potential tenant leaves you wanting to pull out your hair, just imagine what it will be like when they have a legal right to the property! It might be better to save yourself the headache, and move on.
-
Are you a pet owner?
This isn’t so much a question you should ask the tenant, as much as a question you should try to answer for yourself through observation. Many pet owners do not give an honest answer when asked this question, because they do not want to incur the additional fees. However, you could use context clues to suss out more information. You may be able to observe cat or dog hair clinging to their clothing, for instance. This is why we highly recommend interviewing prospects in person, not over the phone.
Make Property Investment Easy with Barker Realty Property Management
While credit reports, background checks, and reference checks are indispensable parts of the tenant screening process, nothing compares to the “gut feeling” a seasoned property manager has when speaking to a prospect. With over 30 years in the Raleigh property management arena, we know what makes a good tenant and what makes a bad one—and we’re happy to pass our expertise onto you!
If you need help screening tenants or any other aspect of investment property management in Cary or Raleigh, call Barker Realty today. We can’t wait to help you find and manage the Raleigh investment property of your dreams!
