by Barker Realty, Inc. | Jun 23, 2020 | Property Management Company, Raleigh Investment Property, Raleigh Property Management
Owning property is a great investment, as it requires little daily effort once you’ve made the initial commitments. If you’re ready to break into the Raleigh real estate market, here are some real estate investment tips that will help you launch your investing career.
Remember That Real Estate Property Appreciates
Unlike some purchases, like cars, your real estate property investment will not necessarily depreciate after your purchase. In fact, some property owners find that the value of their investment far exceeds what they paid. For example, if you buy a single-family home or apartment building for a low price, manage it through a real estate management company, and sell it after it appreciates, you can get an excellent return on your investment with minimal trouble or hassle.
Don’t Be Afraid To Start Small
Perhaps you cannot currently afford to invest in a large apartment building–or you can, but are nervous about making such a big commitment. Not a problem! Even if you purchase a small house and rent out the property to tenants, you are still considered an investor. You can gain experience with your smaller purchase, and then work your way up to a bigger investment over time.
Work with A Professional Real Estate Manager
Rental property doesn’t come with the uncertainty that many investors suffer when putting their money into the stock market–but it does come with some risk. In order to ensure the best success possible, work closely with a real estate management company to understand the cost of maintaining a certain property; taxes and insurance requirements, and all the other details.
Build Up an Investment Budget
While real estate can yield substantial returns in the long run, you should expect a minimal return for the first two years. For that reason, you may want to consider paying for your property in cash, so that you do not accumulate interest or risk foreclosure. You can also, of course, take out a small loan, if you are confident that you can pay the mortgage without monthly rent coming in. When you’re ready to start investing, Barker Realty’s experienced sales brokers can help you explore the best financing option for you.
by Barker Realty, Inc. | Jun 9, 2020 | Barker Realty, Investment Property Blog, Raleigh Investment Property, Raleigh Property Management
If you haven’t been keeping count, the millennial generation is—almost—all grown up. The youngest, born in 1996, will be turning 24 this year, and the oldest, born in 1981, will be 34. As this unique generation enters its next stage of life—a stage potentially involving marriage, kids, and higher salaries—researchers are watching closely to see where they’ll head to next. And all the data collected so far shows that, like their parents before them, millennials are ditching huge metropolises for cleaner, greener pastures. In today’s post, we’ll discuss how many are leaving, where they’re going, and what this means for Raleigh investment property owners.
The Numbers So Far
According to data released by the U.S. Census Bureau last year, big cities lost about 27,000 young adults in 2018. A “big city” was defined as a city with more than 500,000 residents—such as New York, San Francisco, Chicago, and Houston—and a “young adult” was defined as a person between the ages of 25 and 39. More alarmingly, 2018 marked the fourth consecutive year with such a noticeable decline. Although a quick Google search turns up plenty of claims that millennials are flocking to big cities, census data suggests the reverse is true.
Where They’re Heading
Luckily for Raleigh property owners, census data also shows where those young people are moving to: mid-sized cities that are still urban, but smaller and more affordable. The most popular millennial destinations included Denver, Austin, Nashville, Portland, and, you guessed it…Raleigh! All of these cities are known for having a vibrant, youthful population; a thriving urban scene; and housing that, while not cheap, is not prohibitively expensive. And with populations that hover around the 500,000 mark, instead of high above it, there’s a lot more room for newcomers to move their elbows, too.
What About the Suburbs?
Census data also showed that millennials are increasingly migrating to suburban areas, as well. But the line between a “suburb” and a mid-sized city was not well defined. Speaking to CNBC, tax policy expert Cathy Koch noted that the two terms are not mutually exclusive. “The ‘suburbs’ may very well be smaller cities close to larger urban areas…these still afford the richness of city living, including employment opportunities, at maybe lower home prices.”
What This Means for Raleigh Property Managers
Even though the world has been thrown into some uncertainty by the coronavirus outbreak, this data shows that Raleigh isn’t down-and-out—not by a long shot. In fact, an argument could be made that in terms of cities, we are among the most well-positioned to survive and thrive in an economic downturn. With a population of about 474,000 people, we are just barely under the “big city” qualifier; we offer all of the advantages of a sparkling urban center, without metropolitan drawbacks such as crowding and congestion. Our nationally-ranked universities and technological hubs like the Research Triangle Park continue to draw educated, professional young adults from all over the country; adults with families, needs, and purchasing power. Finally, although Raleigh has been criticized for being less artistically-focused than some of its neighbors, our STEM specializations would be an advantage in a recession, as medicine and technology will always be human necessities. In conclusion, if you are considering purchasing an investment property sometime soon, Raleigh is an excellent choice.
Barker Realty, Inc. has provided leading real estate management and property services to Raleigh residents since 1984. We help both experienced and first-time property owners select lucrative real estate options, and provide any property management services they might need. To learn more, please click here.
by Barker Realty, Inc. | Apr 14, 2020 | Property Management Blog, Raleigh Property Management, Tenant Management, Tips for Landlords
Though we are only a few months into weathering the coronavirus pandemic, it has effectively changed life as we know it. Below are some tips that can help you maintain a positive landlord-tenant relationship during these tough times.
Remember That You are a Leader
First things first: remember that, to your tenants, you are in a leadership position. You control one of the most important aspects of their lives—their housing—and that means that, like it or not, you are a voice in their community that they will turn to for guidance and reassurance. Keeping this frame of mind will help you stop thinking of yourself as a victim on a sinking ship, and start thinking of yourself as a leader guiding the way through a dark tunnel. While you don’t have more answers than anyone else does, you can corral the troops, so to speak.
Inform & Reassure Tenants
If you have not already done so, send an email to your tenants alerting them to the measures and precautions you are taking to prevent the spread of COVID-19. You should also use this as an opportunity to assuage fears, open the lines of communication, and address tenant concerns. Let your tenants know that, though you have not yet finalized a plan for addressing rental defaults, they will not be kicked out onto the street overnight if they cannot make rental payments. If citizens start to think they might lose everything very quickly, it could result in mass hysteria, which will only negatively impact you (and everyone else in your community) even further.
Explore Your Options
As we stated above, there is no one blanket way to address the financial impact of the pandemic. The actions you take will depend on your city and state ordinances, personal feelings, budget, current tenant relationship, and estimation of the future. The important thing to remember is that you are not alone, and that every other property owner in your city is facing the same questions. Reach out to local housing committees and state housing boards to discuss your options regarding funding and rent collection. You might work with local and federal government agencies to help your tenants find aid; work out a repayment plan once the crisis is past; waive late fees; or take some other course of action.
Prioritize a Positive Tenant Relationship
Without knowing you personally, can’t tell you how to manage your financial situation amidst this crisis. But what we can tell you from our experience in property management is that good tenants are worth their weight in gold. If you have tenants who are pleasant to interact with, timely with rent payments, respectful of your property, and respectful of their neighbors, it might be financially worth more in the long run to keep them than to replace them. “Good tenants” are actually saving you a lot of money in property damage repair, pest extermination costs, cleaning and trash pickup, and more; whilst bad tenants can often be an endless hole of frustration and lost revenue. For these reasons, sending out a panicked letter stating that you expect your rental payments come hell or high water might damage your long-term profitability more than it helps it.
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 a consultation appointment with one of our skilled representatives, click here.
by Barker Realty, Inc. | Mar 10, 2020 | Barker Realty, Raleigh Property Management, Tenant Acquisition, Tips for Landlords
Owning a Raleigh investment property is tough work. In addition to understanding the legalities of leasing and handling the property upkeep, you also have to make sure that every tenant is a responsible, respectful individual who won’t disturb the property or their neighbors. Unfortunately, this can be tricky to do in the best of circumstances, and when the tenants are the property owner’s friends, situations can quickly become murky. Below are some reasons why you should never rent to friends (or friends’ children).
It’s Impossible to Maintain a Professional Relationship
Tenant-landlord relationships should be, first and foremost, professional. As the owner of a Raleigh rental property, you are responsible for setting the rules, and your tenants are responsible for following them. When you rent to a friend, you’ll find that the professional boundary gets muddled. Your pal might ask for leniency and special allowances that you wouldn’t grant another tenant, or take advantage of your relationship to ignore rules of the rental agreement. On your part, you will start to feel resentful and taken for granted, which leads us to our next point:
It Could Cost You Your Friendship
You probably like your friend a lot; after all, that’s why you decided to rent to them! However, renting to a friend starts you both down a path that leads to nothing but disaster. If you and your friend run into disagreements about the lease and the property, your entire friendship may suffer. Your friend may feel resentful that, despite your good relationship, you are refusing to cut them some slack; you may resent that they are taking advantage of your history to skirt the rules. At the end of the day, this can cause a serious rift that will last long after the lease period is over.
In The End, You’re The One Who Has to Pay
If your rental agreement states that no pets are allowed, and your buddy thinks you’ll be fine with his German Shepherd because you go way back, you’re the one who’s going to be left cleaning up the mess on the floor. Your friend can simply hop-skip to another property—hopefully one that’s less tolerant of his behavior—but as the landlord, you don’t have that option; you will either have to make repairs and restorations that his security deposit doesn’t cover (if he had one). Rather than run the risk of a ruined apartment and a ruined friendship, you’re better off adhering to one simple rule: no friends allowed.
Get Quality Help from a Raleigh Property Management Company
Being a landlord is tough enough as it is; you don’t want to add to the pile by putting a couple of your closest friends under a roof that you manage. Fortunately, there are plenty of tools at your disposal to help you find responsible, clean, polite tenants. A Raleigh property management company such as Barker Realty can help you vet tenants, take care of their issues; manage their rental payments, and much more. To schedule a meeting with one of our incredible property managers, please click here.
by Barker Realty, Inc. | Dec 10, 2019 | Raleigh Property Management, Safety & Security, Tenant Management, Tips for Landlords
For many people, the holiday season is the best time of the year. However, all the hustle and bustle of the holidays brings new challenges for landlords and property managers in Raleigh. Below are some tips to keep your Raleigh investment property and tenants as safe as possible this season!
Remind Residents of Fireplace Safety
According to the National Fire Protection Association (NFPA), nearly half of all home heating fires occur in December, January and February. You can reduce the risk by distributing safety reminders to residents; checking the smoke alarms in all rentals; and schedule a chimney inspection and cleaning to ensure proper performance. Additionally, make sure residents are aware of correct evacuation procedures.
Remind Residents of Electric Safety
As residents plug in more and more lights to create the perfect festive atmosphere, beware of how much they are plugging in to which circuits. Instruct tenants to never use more than 3 strings of lights per extension cord, as this presents a definite fire hazard. In addition, remind residents to never leave electric heaters or electric heating blankets plugged in and running. More forgetful residents might want to employ the use of a timer.
Prepare to Melt Icy Roads
Each year, around 22 million tons of rock salt is dumped on roads and sidewalks in the U.S. While this has been shown to reduce vehicular accidents, the environmental costs are significant: it seems into the soil, groundwater, lakes, and streams, making them unsafe for human and animal consumption. Consider these natural ice melting alternatives, and stock up!
Protect Residents from Porch Pirates
The Christmas season means an increase in package deliveries and, unfortunately, an uptick in porch pirates. Installing very obvious surveillance cameras in the parking lots, security lights, and other security measures can go a long way towards making sure your residents’ packages are safe!
Spread Some Holiday Cheer
The holiday season presents a perfect opportunity for landlords to thank their tenants with small treats and gifts. You might make a “holiday care package” containing a sweet treat, fire and electric safety brochures, hand sanitizer (since this is flu season, after all!) and a small gift, like a calendar for the new year or ice scraper. These small tokens will help foster good relationships with your tenants that can last the whole year through!
Barker Realty, Inc is a Raleigh property management company providing tenant screening services, real estate investment consulting, and more to the Raleigh-Durham area. To learn more about our services, click here!
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!
