by Barker Realty, Inc. | Aug 9, 2022 | Apex Investment Property, Apex Property Management, Featured Article, Property Management Blog, Tips for Property Investors
Many people have a lot of rental property questions and there are a lot of myths about renting, which our Apex property management company would like to clear up and dispel your concerns.
Myth 1: You are Throwing Away Money
Fact: Many people think that because you will not build equity by renting, you are wasting money. However, renting does not waste any money. In fact, our property managers in Apex can help you save money. The cost of maintenance is included in renting.
It may not be a good idea for you to buy a home right now. For example, if you do not have enough money saved up for a down payment, then it is best for you to rent. It may also be a bad idea to buy if you live in a bad housing market.
Myth 2: You Cannot Negotiate With a Apex Property Management Company
Fact: Many people think that landlords have all of the power. However, you have more negotiating power than you think. The most important thing that you can do is read through your entire lease and if there are terms than you want to negotiate, then you have every right to openly discuss these items with your landlord or property management company.
Myth 3: It is Hard to Get Out of Your Lease
Fact: It is not a good idea to sign a long-term lease if you know that you will have to move. However, unexpected things can come up in your life. For example, your roommate may move out. You may also have to move because of a job. You may have health issues. The list goes on.
If you have to move, then you will need to let your landlord know as soon as possible. You may be able to sublet your place. You may have to pay fees, but there is always a way out of your lease and we always recommend to be as open and honest as possible with your landlord or property management company, so you can collectively come up with a solution.
If you have any rental property questions, give Barker Realty a call today. We have property managers in Apex, Cary, Raleigh and throughout the whole Triangle region.
by Barker Realty, Inc. | Jul 19, 2022 | Featured Article, Property Management Blog, Tenant Management, Tips for Landlords, Tips for Property Investors
It is easy for people to get a short-term lease in the digital age. However, there are a number of risks that are associated with subletting an apartment or house. Property damage, liability issues and stealing furniture are some of the many risks associated with subletting, which our team at Barker Realty works hard to avoid for our rental property owners.
The law can vary from place to place. However, people who are caught subletting can expect to pay a hefty fine. For example, the fine in Miami, FL starts at $20,000. There may be additional fines if you live in certain communities. Contact Barker Realty to get more information about potential fines in and around Cary, NC if you’re considering subletting to see if your community or lease agreement allows this change in terms.
How to Prevent People From Subletting with a Lease Agreement
There are several things that our Cary property managers can do to prevent subletting. The lease is a document that is legally-blinding. Many people try to sublet because it is not forbidden in the contract, however, Barker Realty highly advises that every rental property lease contain one or all of the following clauses.
No Subletting or Assignments
Renters shall not sublet or assign the premises. All tenants have to fill out an application and be approved before moving in. Renters are responsible for paying rent and any damage for the remainder of the lease term.
Invitees or Guests
If guests or invitees cause damage to the property, then renters are responsible for paying for the damages. Guests are not allowed on the property longterm without having a property manager’s or landlord’s permission.
Our experienced Cary property managers help prevent subletting by making this a clause in the lease agreement allowing the right to evict tenants who violate this agreement. Furthermore, it is a good idea to require that every tenant has renters insurance.
Work with a Reputable Property Management Company
Hiring the right property manager is one of the keys to avoiding this nightmare. They will put the best terms in their agreement, so tenants know that subleasing is not allowed. They will be able to clearly explain the ramifications of breaching the agreement and can enforce an eviction policy. Additionally, they will do periodic checks in order to ensure that no one who is not on the lease is living inside of the home.
Get in touch with Barker Realty, a investment and rental property management company based in Cary, NC to talk about our services or have us represent your property to give you peace of mind.
by Barker Realty, Inc. | Jul 5, 2022 | Investment Property Blog, Property Selection, Taxes & Financing, Tips for Property Investors
Benefits of Using a Property Manager for your Rentals
Investors in the real estate market typically don’t start out very big. Everyone has to start somewhere and most people end up living in the home before turning it into a rental after accumulating more financial resources. You have the opportunity to expand beyond owning a single property as a rental property investor to own and manage multiple homes.
Managing these properties includes maintenance, collecting rent, signing paperwork, and ensuring that the units remain occupied. If you’re investing in rental property as a secondary source of income, it might make more sense to work with an investment property management company to help with some of these tasks.
A good property manager represents their client’s interests well and can assist with screening tenants, ensuring the properties remain occupied and ensures fast repairs both during and in between tenancies. It’s crucial to stay in touch with your property manager for frequent updates and even driving by the properties themselves to see how they’re being maintained outside. Here are a few tips for investors thinking about hiring a property manager.
Long-term benefits
Don’t get too caught up in the short-term benefits of owning a rental property. There may be a few rough patches where you may need to spend more than you anticipated, but home values can increase over time. The potential for an increase in value is significant and typically less risky than other investments such as the stock market or savings account.
Stick with newer homes
Rental properties are a better investment if they’re on the newer side. Stick with houses that are no more than 20 years old to reduce repair and maintenance costs. You might need to repair the floors or paint the walls, but they aren’t as pricey as homes that are less than ten years old. If you want to do a complete and extensive renovation, feel free to buy a home that is 20 to 70 years old, but anticipate having to do significant structural, plumbing, or electrical work.
Contact us today if you are a rental property investor and think that you could benefit from hiring experienced Apex property managers to assist with your investment property management needs.
by Barker Realty, Inc. | Jun 7, 2022 | Property Management Blog, Property Management Company, Property Selection, Tips for Property Investors
There are many people who are interested in investing in rental property as it can be a great financial move for a variety of reasons. Not only can investors make money off of monthly cash flow from the collected rent, but there is also financial benefit in the equity appreciation build-up over time. You are essentially having someone else pay your mortgage and insurance on a piece of property that can retain value or appreciate, especially in the Durham-Triangle market.
At Barker Realty, our property management company highly recommends conducting research before investing in real estate in your area to make sure it will be a great fit for your business or you personally. Talk with others. Talk with experts. Learn as much as you can about how investing in rental property could be a game changer for you and your portfolio. Here are some tips to help you along the way!
Find a Rental Property
The best rental properties are in areas that are growing rapidly. The biggest predictor of future price appreciation in an area is the growth of the population. In addition, a growing population will have many renters who are willing to live in your property.
With the competitive real estate market, it may be difficult to find a rental property that meets your needs. You should look for a property that will produce positive cash flow every month. You need to plan out your expenses with the property and then look at what the home will rent for. Hiring property managers is part of the rental process. These costs need to be accounted for as well.
Financing
Real estate investors need to understand how to use financing options for their benefit. Financing is the best way to purchase a rental property if you do not have the cash to do so. Some real estate investors borrow too much money and get into financial trouble. Instead of doing this, borrow money in a conservative way. This will help you reduce the overall risk that you have in an investment.
Hiring Help
No one wants to answer calls in the middle of the night from tenants. Hiring property managers is the best way to reduce your stress while owning a property. You need to look at online reviews before making a decision on the company that you want to work with. You should work with a company that has quality customer service and support at all hours.
Rental property can help you get to the next level in your finances. However, be realistic with yourself. It’s not easy and it is not a way to get rich quickly, but it will help you build wealth over time when done the right way. With the strong housing market, now is a great time to look for an investment property in your area.
Contact Barker Realty today for more information about investing in real estate, rental properties and overall property management services.
by Barker Realty, Inc. | Apr 5, 2022 | Property Selection, Taxes & Financing, Tips for Landlords, Tips for Property Investors
Rental properties are lucrative investments in the modern society and seemingly becoming a trend for younger generations to try to capitalize on. With online platforms like AirBnB and Instagram, real estate has become “sexy” to get involved with. Thousands of business moguls in the world have dominated the sector because of its enjoyable benefits and they are sharing those experiences on their social media accounts daily. If you invest wisely in the real estate industry, you could make huge profits and live a lifestyle one can dream of.
Alternatively, you may want to focus on building what some consider “long term savings accounts” where you have renters paying down the mortgage and insurance, while your property maintains or even grows in value. When you sell, you are rewarded with a large chunk of change, tax free depending on the time you’ve owned the property.
If you want to invest in rental property, you have to ensure that it has the best features to attract excellent tenants while also working with a property management company to help market and manage as you build your portfolio further. Some of these features may include:
- Provide the best utilities
- Convenient location
- Spacious parking
- Safety and security of tenants
- Provide mutually beneficial terms of the lease
Below are 5 key benefits of investing in rental property from Barker Realty.
1. High Leverage
If you own rental property, you can easily access borrowed capital. The capital will enable you to maximize your returns on investments. Rather than using your cash, you can use the loans to invest in other opportunities. Rental incomes will cover the interest costs and monthly mortgage.
2. Property Value Appreciation
The value of your rental property should increase over time, in most markets. Real estate is not a volatile sector these days, unlike 2008/2009. In the long run, your property is likely to attract serious buyers or at the very least, maintain quality tenants.
Moreover, apart from your asset increasing, the rent prices may also rise. Therefore, rental properties are the best assets to own today because they always combat inflation.
3. Source of Passive Income
You generate a direct income stream from tenants every month, which is the biggest advantage of investing in rental properties. Many property investors call this “Mailbox Money”. It just shows up, every month. You can use the extra funds to launch other lucrative projects or build up your savings.
4. Tax Benefits
If you own a rental property, you will enjoy multiple tax benefits, which include these deductions:
- Insurance
- Interest
- Home office
- Depreciation
Therefore, we recommend speaking with your accountant or working with an accountant who is very familiar with real estate investing and has other rental property owners in order to maximize your annual deductions when it comes to filing your State and Federal returns.
5. Retirement Strategy
After retiring from a formal job, many people look to real estate to invest their money or to continue working, but for themselves. Others see this as a way to maintain income after retirement if they have owned property while also working a full time job.
It is advisable to hire a local property management company who are experienced in maintaining the value and condition of your property, vetting potential tenants, and marketing your property to obtain the highest dollar possible in your market and making sure your tenants are paying on time.
Contact Barker Realty for more information about getting started on the real estate investment path, or if you already have property, talk with us about having it professionally managed.
by Barker Realty, Inc. | Jan 3, 2022 | Tenant Acquisition, Tenant Management, Tips for Landlords, Tips for Property Investors
As leading Cary property managers Barker Realty screens prospective tenants carefully to filter out any renters who might cause problems for our clients. Over the years, in no particular order, we have identified many ways to properly screen tenants before a lease agreement is signed as outlined below in five examples.
1. Review Credit History
Prospective tenants who have a history of making their payments on time will likely be inclined to consistently pay rent on or before the due date. A low credit score may indicate a lack of responsibility and could signify other financial problems that will make it harder to pay rent on time. Anyone who wishes to rent a property should agree to a credit score check.
2. Search Through Social Media
A prospective tenant’s social media history can give clues on the type of renter that he or she would be. Searching for particular profiles on popular social media sites like Facebook, Instagram, Twitter or LinkedIn can give property managers the tenant screening help that they need to uncover important information.
3. Check Eviction History
It is also important for a rental property manager to investigate the eviction history of a person who wishes to rent. If any prior evictions were the result of rental nonpayment, property damage or the harassment of other tenants, it is best to choose a more reputable applicant.
4. Perform a Criminal Background Check
Most people’s criminal histories are available for public viewing by obtaining records from the local municipal court or through various online websites/software. Landlords can protect themselves by reviewing the arrest and conviction histories of any people who wish to rent from them. Some criminal history information may not lawfully be able to be used to make a final decision on whether or not to rent to a person, so it is important to check local and state laws in advance.
5. Check for References
An applicant’s personal and professional references should always be checked so that the rental property manager can learn more about the type of person he or she is. This includes calling current and past employers as well as friends and family members. If a prospective tenant is unable to provide references, it could be a sign of problems to come down the road.
As our rental property managers have experienced and continue to experience, thoroughly screening applicants in advance increases our chances of renting to the best tenants around. Contact us today for more information or to speak with one of our investment property managers in Cary.
