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. | 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. | Dec 17, 2018 | Local Property Management
Let’s run through an all too common scenario with real estate investors in the past…
You have a rental property worth $200,000, but you would like to sell it and buy a different one worth slightly more. The property will be used in the same manner as its predecessor. Usually, you would incur a tax liability from the net proceeds, leaving you with less capital for your intended investment.
That was until the introduction of the 1031 Tax Deferred Exchange that allows a real estate investor to defer capital gains tax liability, effectively releasing more money to you for investment. A full deferral means that you will invest the entire net proceeds in the exchange property, effectively dictating that the replacement be of equal value or worth more than the original.
Let us explain further —
What Does This Exchange Mean?
Section 1031 of Internal Revenue Service Code allows you as a real estate investor to defer your tax liability when you dispose of one property and invest in another of the same nature. The said property must be the used for trade to generate income.
What Are The Conditions For A 1031 Exchange?
The law states that the exchange property should be like-kind, meaning it should resemble the sale property in nature and character rather than quality. You can spread the net proceeds over one or more exchange properties.
Like-kind property considered in the deferral plan include:
- Exchanging an unimproved property for an improved one.
- Exchanging a single family rental unit for a multi-family one.
- Selling a vacant piece of land to buy a commercial building.
- Selling an industrial property to buy rental property in a resort area.
- Personal property does not qualify for 1031 unless for productive use in business or trade.
- In a full tax deferral, you are expected to invest the entire net proceeds in an exchange property.
Timelines
A real estate investor must adhere to strict deadlines if they are to benefit from this tax deferral plan. You should identify an exchange property within 45 calendar days of closing on of the sale property. After determining the replacement property, you should close the deal within 180 calendar days of closing the previous investment.
Practically, say you sold your property on January 1, 2017. The identification period ends on February 15, 2017, while the exchange period ends on June 30, 2017. If you fail to close the deal within that time limit, you lose your deferral privilege.
We are an experienced Durham property management company that would like to see you take advantage of this tax deferral. Talk with Barker Realty today for more information on 1031 Exchanges and managing your rental properties with ease!
by Barker Realty, Inc. | Sep 3, 2018 | Local Property Management, Property Management Blog, Tenant Management, Tips for Landlords
Educating Tenants at Move-In to Avoid Unnecessary Work Orders
Real estate is a significant investment that can potentially yield high profits. As a property owner, you need to educate yourself with the necessary information about your rental property, the housing market and the region in which you have your rental(s) in order to build a better, more healthy relationship with your tenants. Building these relationships gains their trust and your credibility to ultimately reduce and avoid unnecessary work orders.
The best way of educating a tenant and maintaining them for longer periods of time is by hiring the services of a local real estate management company, like Barker Realty, who have experienced rental property managers on staff with years of experience.
Companies like Barker Realty should be in a position to handle any tenant need and make sure that your investment property is kept up efficiently and in your best interests.
Let us share some basic tips in dealing with tenants to ensure a healthy, balanced relationship:
1. Provide Utility & Home Service Information
As a rental property manager, tenants should be provided information about important local service providers, such as utility companies, phone, TV, internet and city/town contacts before they move in. Providing these details to your tenants shows value and benefits in proving you care about their smooth transition. Your tenants should have enough time to make the calls to get tech’s scheduled and services activated at their new home (your rental).
2. Provide Parking Information
Parking can be a pain anywhere, but it shouldn’t be at your tenant’s new home. Some tenants may have cars and others not, but those who do should know where they can and cannot park and if there are restrictions on time of day or night as well. Allowing your tenants time to check out the area to find parking or use a lot or a driveway is key and will also cut down on possible neighbor or neighborhood complaints.
As a property management company, our team at Barker Realty knows to ask tenants how many cars they have as well to help identify a potential issue before it arises or give the green light that everything will be fine.
3. Provide Important Details About Payments, Maintenance Requests, and Any Deadlines
When it comes to rental payments, many landlords face challenges from tenants who may be late or delinquent or provide false excuses on why they can’t pay on time. Same applies to maintenance requests or needs from tenants over the days, weeks, months, years. Property owners don’t want to be hassled with this each month, so that is where hiring a property management company becomes of great value.
Your rental management provider, like Barker Realty, will be able to give clear guidelines to your tenants regarding the date of payment, and consequences of delaying the payment. Also, in case of property damages by a tenant, tenants need to understand they are liable. Alternatively, if an issue arises with the property that is not caused by the tenant, then you the landlord are responsible to fix in a timely manner to uphold your end of the lease agreement. Tenants have rights too, and abiding by these situations to help each other out makes for a long lasting relationship.
Supplying your tenants with the above three pieces of quick, useful and helpful information may reduce unnecessary work orders and tension between you and those occupying your rental property.
Contact our Raleigh property management company today to speak with us about your rental management needs or to discuss any of our services. It’s our goal to provide each and every one of our clients the best service!
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.
