by Barker Realty, Inc. | Jun 21, 2022 | Local Property Management, Taxes & Financing, Tenant Management
It is not cheap to operate a rental property. The cost of operating a property goes up every year. Insurance rates, taxes and maintenance are some of the things that a rental property investor can expect to increase every year.
Our property managers often wonder whether they should raise the rent in order to cover the expenses. It is important to remember that raising the rent is not like asking for a raise. You cannot say that it is time for you to raise the rent because you have been there for three years.
Experienced property managers have to do a lot more than just send out a notice saying that the rent will be increasing. Your tenants may just move out. It can be hard for you to replace the tenants if the rent is too high and rental pricing should follow market value.
A rental property investor will have to decide whether it makes financial sense to raise the rent. You have to make sure that you will have to make an actual profit from raising the rent.
The rent increase has to cover holding costs for the next tenant. They also have to cover realtor commissions. You will also need to calculate repair costs and the changes that you will have to make before the new tenants come in.
For example, you currently charge $2,000 per rent. You increase the rent by $50 per month. You will only make an additional $600 per year. However, if it costs you $1,000 to make repairs and fill the vacancy, then you will not generate a profit.
It is important for you to not raise the rent above the current market value. Your current tenants will probably move out, and it can be difficult to fill the vacancy. You may find that you have to lower the rent in order to get a new tenant.
How to Tell Your Tenants About the Rental Increase
In many cases, it just makes sense to raise the rent. It is not based on the cost of insurance, maintenance or anything. The price is based on the market value. You will have to show the tenants that the increase is not due to your personal finances. It is due to market value.
Many tenants believe that property managers are rich and just in it for the money. That is why they are more likely to stay if they know that the rent increase is due to market value.
Want to know more about investment property management? Contact Barker Realty anytime.
![6 Key Traits of Being a Great Property Manager in Raleigh]()
by Barker Realty, Inc. | Mar 8, 2022 | Local Property Management, Property Management Blog, Property Management Company, Raleigh Property Management
We find many people are investing in the real estate sector today, especially in thriving markets like the Raleigh-Durham region of North Carolina. It is a lucrative industry that can have high returns. Just like any other investment needing full attention by professionals who are dedicated to your best interests, real estate requires proper management. Therefore, property owners should always consider the services of rental property managers. These professionals help manage your building or home(s) and rent them out to reliable tenants through a thorough application process like Barker Realty provides.
Getting involved with tenants daily is not an easy task. It requires an experienced manager from a licensed property management company. Our property management services involve the following duties:
- Collecting rents
- Handling issues that affect tenants
- Ensuring that the property is tidy and well-maintained
- Making sure that the landlord’s property is structurally secure
- Taking appropriate actions against tenants who fail to pay rent on time
Therefore, if you want to be relieved from these tasks in order to focus on growing your portfolio further, we recommend hiring a property management company who possess the following traits:
1. Communication Skills
Property management requires excellent communication skills between tenants and property owners or the management staff. Tenants and property owners should be able to reach the manager for non-emergency and emergency issues all the same. Therefore, both written and verbal communication skills are required to maintain a professional demeanor in handling any difficult situation or perhaps simple notifications throughout the management term.
2. People-Oriented
Based on our decades of experience, Barker Realty has learned that people-oriented managers interact with tenants more efficiently. Any property management service provider needs to place quality and competent tenants into residences.
3. Trustworthy and Ethical
An excellent management company is transparent and honest. The property management profession requires trustworthiness, responsiveness, and full disclosure for the owners in how the tenants are being treated and processes are being followed. At Barker Realty, this is what we stand for — to build long-lasting relationships with our clients.
4. Knowledgeable and Experienced
Property managers should be able to interpret financial reports quickly and be able to decipher between a reliable tenant compared to one who may not be the right fit. Additionally, all property managers should be conversant with the latest real estate regulations and property ownership laws. It is recommended to take the appropriate time to perform due diligence and interviews with your prospective managers to also make sure they are a fit for you and your investment portfolio.
5. Marketing Skills
At Barker Realty, we know that marketing of our client’s properties is crucial to the success of the relationship. Your property managers should be good at marketing, including social media advertising and being able to show up online when people are searching for a new place to rent. They should work with local employers and institutions, including universities and hospitals, to provide housing for students and employees and also those relocating to a bustling area like the Raleigh-Triangle.
6. Organized
An organized manager pays keen attention to details and they DO sweat the small stuff to ensure your property is managed properly. Being able to enhance proper maintenance of your property throughout the year, keep paperwork readily available, and check in with tenants are tasks which help your property thrive.
If you own property or are looking to invest in property in the Raleigh area, consider the above in your search for a reputable local property management company like Barker Realty. It’s important to get a knowledgeable and success-oriented team on your side.
by Barker Realty, Inc. | Feb 2, 2021 | Investment Property Blog, Local Property Management, Property Management Blog, Property Management Company
Some real estate investors, particularly new ones, see hiring property managers or a property management company as an unnecessary expense. But, they can actually be a huge benefit to your income.
Here are four important reasons to hire a property management company to oversee your rental property:
1. Set the Best Rent for Your Property
You could spend hours, days, or even weeks scrolling rental listings to try and find comparable properties and the rent they’re getting. But a local real estate management company will have a good handle on the local market and be able to tell you how much to charge to ensure that you not only get quality tenants and low turnover but also get the most income out of your property. Plus, property management companies have access to professional sources such as MLS (multiple listing service).
2. Market, Advertise and Show Your Property
Managing your property alone you can spend hours every week crafting ads, fielding phone calls, text messages and emails about the property, and showing the home to prospective tenants. Unless the rental property is your full-time job, this takes time away from your family, work, and downtime. Property managers do this every day. They have the experience and knowledge to quickly create ads, and it is their full-time job to answer prospective tenant questions and show the home. This frees up your time, and also provides more flexibility to the prospective tenant, as they don’t have to work around your schedule.
3. Manage Vendor Relationships
Plumbers, electricians, appliance repair technicians – at some point, they’re all going to need to come to your rental property to repair or replace something, whether it’s through tenant damage or simple wear and tear. As a real estate investor, you’ll always get the same rate that any other private party would get. A property manager, however, may get a discount because they manage so many properties and can give an extensive amount of work to the vendor. You’ll save money and get high-quality repairs through vetted vendors.
4. Ensure Compliance with Housing Regulations and Property Laws
As a real estate investor, you likely did your research before you started. But the regulations and laws can be exhausting, confusing, constantly changing and hard to read. A property management company will be thoroughly familiar with all the regulations and laws, and they will ensure that you comply with them all.
Give Barker Realty a call today to see how we can help!
by Barker Realty, Inc. | Dec 8, 2020 | Local Property Management, Property Management Blog, Property Management Company, Tips for Property Investors
Some real estate investors, particularly new ones, see hiring property managers or a property management company as an unnecessary expense. But, they can actually be a huge benefit to your income.
Here are four important reasons to hire a property management company to oversee your rental property:
1. Set the Best Rent for Your Property
You could spend hours, days, or even weeks scrolling the classifieds to try to find comparable properties and the rent they’re getting. But a local real estate management company will have a good handle on the local market and be able to tell you how much to charge to ensure that you not only get quality tenants and low turnover but also get the most income out of your property. Plus, property management companies have access to professional sources such as MLS (multiple listing service).
2. Market, Advertise and Show Your Property
Real estate investors, managing your property alone, can spend hours every week crafting ads, fielding phone calls, text messages and emails about the property, and showing the home to prospective tenants. Unless the rental property is your full-time job, this takes time away from your family, work, and downtime. Property managers do this every day. They have the experience and knowledge to quickly create ads, and it is their full-time job to answer prospective tenant questions and show the home. This frees up your time, and also provides more flexibility to the prospective tenant, as they don’t have to work around your schedule.
3. Manage Vendor Relationships
Plumbers, electricians, appliance repair technicians – at some point, they’re all going to need to come to your rental property to repair or replace something, whether it’s through tenant damage or simple wear and tear. As a real estate investor, you’ll always get the same rate that any other private party would get. A property manager, however, may get a discount because they manage so many properties and can give an extensive amount of work to the vendor. You’ll save money and get high-quality repairs through vetted vendors.
4. Ensure Compliance with Housing Regulations and Property Laws
As a real estate investor, you likely did your research before you started. But the regulations and laws can be exhausting, confusing, constantly changing and hard to read. A property management company will be thoroughly familiar with all the regulations and laws, and they will ensure that you comply with them all.
Give Barker Realty a call today to see how we can help!
by Barker Realty, Inc. | Aug 18, 2020 | Barker Realty, Local Property Management, Raleigh Property Management
Our Raleigh NC property managers have been in the business of taking care of homes for a long time, and with winter coming, they have a few simple tips that can keep units snug and dry. Just a few hours of preventative work while the weather is still warm can help avoid major headaches in the colder months.
1. Clean Gutters and Window Wells
This is one of the simplest maintenance tricks, and one of the most effective. Whether tackling this chore yourself or reaching out to your local Raleigh property management team, it is an important step for winter readiness. A dirty gutter and window wells will hold ice and snow, block drainage, and cause overflow. This can cause long term damage and even encourage mold growth. A simple cleanup avoids all these problems.
2. Sump Pump Maintenance
Another area where prevention will lead to savings is sump pump maintenance. Raleigh NC property managers can help to locate the exit pipe and clear it of debris. The pipe should also be far enough from the home to not direct water right back into the building’s foundation, which can cause mold or decay. It’s also important to test the pump itself by pouring water into the pump pit and seeing if the pump turns on – and then off – appropriately.
3. Electrical System Maintenance
Winter often puts added strain on electrical systems. The longer nights and shorter days mean lights are on for far longer than summer. Many heating systems also add to the load. Our Raleigh property management team recommends that homeowners and tenants alike take a quick look at their main electrical panel – or calls the management team to do so – to check for sparks, frayed insulation, or other obvious signs of wear and tear. A multi-meter tool is also helpful in testing that outlets are all in working order.
4. Bleed Radiators
This is a simple procedure worth doing at least once per year. After running the radiators at max temp for just a few minutes, turn the boiler back off and start bleeding radiators one by one. As air is being released, use a bucket or tray underneath to catch any stray water. Once each radiator has been bled, check the air pressure in the boiler itself. It’s as simple as that!
5. Examine Doors and Windows
Poorly fitting doors and windows let out an enormous amount of heat. Doing a quick check of each opening for leaks, gaps, and other defects allows you to schedule any fixes prior to the arrival of cold weather, saving both money and future discomfort.
6. Weatherproof Pipes
The extreme cold can cause pipes to freeze, and then to sometimes burst upon thawing. This is an expensive problem that simple maintenance can avoid. Rather than wait for an expensive break, check pipes in fall for any signs of cracking or wear. A plumber can be called in for a non-emergency fix if needed, but even if no obvious damage is observed insulating tape can be wrapped around outdoor pipes for extra protection against the elements.
7. Chimney and Fireplace Inspections & Sweep
Whether you have a gas fireplace or a wood burning fireplace, you should have your fireplace and chimney inspected on an annual basis and cleaned as well, especially if you burn a lot. Keeping a clean chimney reduces the need for a Raleigh chimney repair company to need to fix any issues. You can stay ahead of any concerns which may arise when you haven’t had the system checked regularly.
Simple and quick maintenance is the key to avoiding time-consuming and expensive repairs. Though many of these fixes can be done by a handy person, the simpler solution for anyone with a demanding schedule is to simply search for property management near me and let professionals take the lead.
by Barker Realty, Inc. | Jul 7, 2020 | Barker Realty, Local Property Management, Raleigh Property Management
Today, many local property investors are millennials than the baby boomers generation. However, this has not been an easy walk for the millennials, especially those buying houses for the first time in North Carolina. Whether they’re looking for homes to live or looking to be local property investors, many face financial hurdles.
Most millennials homebuyers have a bad credit score and negative debt-to-income ratios. So, how can the Millennials be part of Raleigh NC property investors? Here are a few tips to look at.
Tip# 1 Improving Their Credit Score
Credit score affects the amount of mortgage loan millennials can access and the interest rate they will be charged for the loan. A good credit score means easy access to a mortgage loan with low-interest repayment rates.
Millennials with low credit scores should consider the following to increase their credit scores:
- Prioritize to pay the highest interest debts. These could be credit card debts or any other debt from a financial institution.
- Advise their family members who wish to gift them to help in paying off any lingering debt.
- After they are done with clearing debts, they can start saving for a down payment for their favorite house.
Tip# 2 Searching For a House Within Their Budget
The increasing prices for properties is a challenge for the millennials. They should avoid falling for the temptation of buying a home that is not within their price range. Millennials should understand that other financial goals, such as a retirement plan, should not be sacrificed.
It is advisable to search for a property investor near me who is selling a home for an opportunity to choose the most suitable property.
Tip# 3 Millennial Homebuyers Should Learn to Negotiate
Buying a home is like any other business transaction. It is, therefore, crucial that millennials home buyers should master how to negotiate. Millennials’ home buyers can negotiate to have the old and faulty fittings in a home be remodeled at the seller’s cost. Alternatively, they can ask the property investor near me to bring down the house’s price, saving them some dollars.
Contact Barker Realty today to discuss how we help many Raleigh NC property investors manage their properties and keep cashflow steady.
