by Barker Realty, Inc. | Jul 9, 2019 | Property Management Blog, Property Management Company, Raleigh Investment Property, Raleigh Property Management
Investing in property can be personally rewarding as well as profitable. Ideally, prospective landlords can purchase a condo, duplex, or single family home; charge a monthly rent which covers the mortgage payment; and collect a little extra to make a profit. Eventually, if all goes well, you will be able to sell the property for more than you paid for it.
However, with all that said, nothing in life is without risk, and investing in property certainly has its own share of potential issues. Below are some of the most common risks when it comes to property investment, and tips on how to mitigate them.
Risk: The property’s value doesn’t rise over time.
Solution: Choose your property wisely.
The key to making a profit is choosing a good property at the beginning. Try to select a property which is in a low-crime area, has a good school district nearby, and doesn’t need major structural renovations. Not only will this help you find more reliable tenants, it will also ensure that your property value rises enough through the years that you can eventually make money off your investment. A realtor or property management company can help you identify and select a good option.
Risk: You purchase a “fixer-upper”, but end up spending more money on repairs than you make back.
Solution: Avoid “flipping” houses, unless you know what you’re doing.
Popular shows like “Flip or Flop” and “Fixer Upper” have popularized the notion of purchasing a low-cost house, repairing it, and selling it for a profit. However, this strategy rarely works out as well as it does on T.V. Most first-time property owners underestimate the time and money they will have to spend to make a profit, and end up losing much more than they gain. Unless you are very experienced in renovating properties, we recommend avoiding “fixer uppers” and choosing a property that is already in good condition.
Risk: You purchase investment property, but your tenants do not pay their rent on time and cause other problems.
Solution: Screen your tenants carefully.
Even though screening tenants takes more time than simply handing the keys to the first applicant who walks in the door, it is extremely helpful in the long run. Finding reliable, professional tenants who can be depended on to pay the rent on time will help you make a profit and give you peace of mind. Careful screening will also lower your risk of acquiring problem tenants, who may cause property damage or even force you to go through with an eviction. If you do not have time to vet applicants, you can outsource the work to a property management company. Contact Barker Realty today to start the conversation!
To read Part 2 of our series: How to Mitigate Risk in Your Raleigh Investment Property, click here.
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 an appointment with one of our skilled property managers, click here.
by Barker Realty, Inc. | Jun 18, 2019 | Local Property Management, Property Management Blog, Property Management Company, Tips for Property Investors
Buying an investment property is a great way to generate a healthy income stream. However, it’s not as easy as buying a unit, renting it out, and letting the payments come in. Property management takes a lot of patience and hard work, and if you don’t want it to become your full-time job, your best bet is finding someone for whom that’s the case. A property manager can take all the worry off your shoulders so that you really are making money with minimal stress.
Here are some ways property management companies can make your life much easier!
Tenant Management
Tenants require a significant amount of interaction, especially if you have several at one time. Maintenance issues pop up; rental payments are due; and other tiny issues occur which need to be addressed, lest you risk bad word of mouth or even litigation. A property management firm takes over all day-to-day tenant interactions and responsibilities so that you don’t have to constantly be on call 24/7.
Tenant Acquisition and Eviction
A property management firm will advertise open units, interview and screen prospective tenants, draw up leases, and handle move-ins and move-outs, saving you a significant amount of time and hassles. In the worst-case scenarios, they are also responsible for handling evictions. One big bonus of working with a property management company is that they are knowledgeable in the legal aspects of the eviction process, and will generally know how to proceed better than a new or inexperienced landlord.
Paperwork
For some, one of the best aspects of hiring a property management firm is handing over the paperwork to someone else. A rental management firm can complete all the paperwork involved in finding and screening tenants, checking credit reports, conducting background checks, drawing up lease agreements, and keeping track of monthly rent. If you own an entire building with a high turnover rate, the reduction in paperwork can be well worth the cost of hiring a property management company.
Repairs and Maintenance
As a landlord, you won’t just own a house or building – you will also likely own the land it’s sitting on. In addition to the repair and maintenance of buildings and individual units, you will also need to devote some resources to making sure the land is attractive and well-maintained. That can include planting and keeping flowerbeds; repairing pathways; mowing lawns; installing grass sprinkler systems; and scheduling regular pest control. A property management company can hire the contractors or landscapers that will perform this upkeep and ensure that the work is being performed adequately.
Final Thoughts: Should I Invest in Raleigh Property Management?
If you have the time and expertise to manage your own property, and if you are comfortable being on call 24/7 to handle various issues, you may find that you prefer to manage your property yourself. However, if your time is already booked with other responsibilities, or if you find interacting with people stressful, you are probably better off hiring some outside help. Once you’ve outsourced the work to someone else, you can breathe easy and enjoy the benefits of your investment property!
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 an appointment with one of our skilled property managers, click here.
by Barker Realty, Inc. | Jun 4, 2019 | Property Management Company, Property Selection, Raleigh Property Management, Safety & Security, Tips for Landlords
As a landlord, one of your top priorities should be keeping your investment property secure. Firstly, so that your tenants feel safe and protected; and secondly, because a property that is constantly being robbed or vandalized might scare away potential tenants in the future.
While many safety measures are up to the tenants themselves (locking the doors, etc.), here are a few steps you can take as a property owner to protect your investment.
Install Solid Doors
Flimsy, cheap doors, or doors with a lot of windows, can easily be kicked or smashed in by unwanted guests. To make sure your property is as secure as possible, it’s a good idea to install thick wooden or metal doors at each entryway. Even though the tenant’s rental insurance will usually cover damages from a break-in, the money you spend on extra security will still be worth the hassle and worry.
Install Lighting and Cameras
Lighting up an outdoor area is an easy and relatively inexpensive way to deter intruders. It also helps your tenants feel safer on the property, and reduces the risk of tenants injuring themselves in the dark. Motion sensor lights are excellent deterrents which don’t use a lot of electricity. Adding surveillance cameras is also a good way to deter criminal activity.
Document All of Your Valuables
If you include furnishings with your investment property, then it is a good idea to have a detailed record of all the items in the building. If your property is broken into and something is stolen, this will make it easier to replace and claim it through your insurance. Document the manufacturer, model name, serial number, and color of each item, whenever possible. This also includes appliances.
Need More Property Management Tips?
If you need more tips and ideas on taking care of your investment property, or would like to invest in Raleigh property, call Barker Realty. With over 30 years of experience in the real estate investment industry, there are very few questions we can’t answer! To speak with one of our helpful associates, just give us a call.
by Barker Realty, Inc. | May 21, 2019 | Property Management Blog, Property Management Company, Raleigh Property Management, Tips for Property Investors
If you own a condo, duplex, or other type of investment property, a property manager is a necessity. A good property manager can take all the nitty-gritty details of managing a property off your hands, so you can reap in the rewards with minimal stress and hassle. Since this person will be your right-hand-man (or woman), finding a good manager is extremely important. Here are some tips on finding the best property management company for you.
Ask for References
Property management is quite challenging, so your first priority should be finding someone with experience. A good property management company should have several strong recommendations and references from previous or current clients. While it might be tempting to go with the first property management company you find, this can be a big mistake. An inexperienced property manager won’t be able to predict, and handle, the challenges that lie ahead—such as missed rent payments, insect problems, and maintenance issues, just to name a few.
Ask the Right Questions
During the interview process, it’s important to ask questions that will reveal the applicant’s decision making skills, industry know-how, and personality. Some good potential questions to ask a property management company include:
- What is your process for screening potential tenants?
- How long does it typically take you to fill a vacant property?
- How many units have you managed/are you currently managing?
- What is your process for fulfilling maintenance requests?
- What is your process when a tenant doesn’t pay rent on time?
- Have you ever filed an eviction? If so, did the process go smoothly?
A good property manager should readily have answers to these questions. If not, consider it a red flag that they won’t be able to handle the responsibilities quite as well as someone else.
Hire a Raleigh NC Property Management Company
A good property management firm can significantly lighten the load and take the worry off your shoulders so that you can devote your time and energy to other things. If you would like to learn more about purchasing an investment property in Raleigh, NC, call Barker Realty. We are a full-service real estate brokerage firm with more than thirty years of Raleigh NC property management experience. To set up an appointment with one of our skilled property managers, click here.
by Barker Realty, Inc. | Mar 5, 2019 | Local Property Management, Property Management Company, Raleigh Investment Property, Raleigh Property Management
When you are searching for a Raleigh NC property management company to take care of your investment property, here are a few essential qualities to look for.
Responsiveness
If a major issue arises in your investment property, such as a water main break or serious storm damage, you will want a company that is available 24/7 and able to communicate in a quick and timely manner. Look for a property management company that always gets back to you promptly.
Experience
When you are researching your property management options, be sure to inquire as to the number of clients the company has served and how many years it has been in business. A property management company that has experience managing multiple, diverse properties over a long period of time will be much more capable than a company which has only managed one or two.
Accounting Services
One of the best advantages of hiring an investment property management company is that it can manage rental fees, contractor payments, and miscellaneous financial elements for you. For this reason, when you meet with a potential company, be sure to inquire as to the financial or accounting services it offers.
Partner with a Raleigh NC Property Management Company Today
Barker Realty, Inc. is a full-service real estate brokerage firm with more than thirty years of experience in Raleigh NC property management. Whether you are interested in buying, selling, or investing, let us put our vast resources behind you and your real estate goals. To set up an appointment with one of our skilled property managers, click here.
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.
