by Barker Realty, Inc. | Jun 22, 2018 | Apex Investment Property, Apex Property Management, Featured Article, Taxes & Financing, Tips for Property Investors
This is the age old question!
Rental property management can be a lucrative profession and we get asked this question all the time. It is easy for you to make money from rental properties, but that all hinges on many factors to determine how much money you can make renting your property in Raleigh.
Calculate Your Income
The first thing that you will need to do is calculate your monthly income. You do this by multiplying the monthly rent by the number of houses or apartments that are being rented. For example, you charge $1,000 in rent and you own 3 properties, you will bring in $3,000 per month from the rent.
Calculate Your Expenses
You will have to calculate your expenses in order to make money from rental properties. Insurance, taxes, mortgage payments and a management fee to your management company are some of the expenses that you will have to take into consideration. You will also have to consider the cost of maintenance and other expenses, such as utilities and landscaping while vacant, capital improvements needed over the years, etc. Additionally, if you are a member of the HOA, then you will have to include those fees as well.
Total the Results
The money that you have left over, after you cover all of your expenses, will be your profit. Ideally, you should not only have enough money to cover your costs, but you should also have money left over that can come back to you directly to reinvest or save. If your expenses are making it difficult for you to make ends meet, then you may have to raise the price of the rent or find ways to trim your expenses. For example, you may want to shop around for a different insurance provider or other contractors potentially hired to help with upkeep on your property.
If you are looking for a Raleigh property management company that can handle your investment properties or you just want to speak with someone about your potential opportunity to rent your home or condo or building, then give our Raleigh property managers a call today.
by Barker Realty, Inc. | Sep 27, 2017 | Investment Property Blog, Taxes & Financing, Tips for Landlords, Tips for Property Investors
Real estate can be a powerful investment. Buy the right home, and you can rent it out to other families and individuals throughout the years, earning a hefty monthly income as you do. Of course, buying your first home for rent might not be as simple as it seems on the surface. There are a lot of legalities and other concerns to think about, so if you want to make sure that you stay ahead of the curve, then you’re going to need some help from a specialist.
If you want to discover the possibilities of buying a house to rent out, but you want to keep the stress factor to an absolute minimum, the following tips could help.
- Get the Right Advice and Do Your Research
The most important thing you can do to protect yourself when you’re thinking of buying a house to rent out is getting the insight and support of a professional team. The right property management team can not only give you advice on what you need to do as a landlord, but they can also take a lot of the hard work of owning an investment property off your plate.
At the same time, remember to do your own research too. Take courses where you can, read books on investment and talk to other people who have spent some time exploring the market. The more you know about real estate investment, the more confident you will feel when you start your new venture. Just as you wouldn’t move into a new house without help from a professional moving team like our friends at Bellhops Moving Raleigh, you shouldn’t start your venture without insights from specialists.
- Know What to Buy
Once you’ve got the right experts by your side, it’s important to think about how you can get the best house for your future. After all, you want a home that’s going to attract a whole host of potential renters, but you may have to make some compromises if you want to keep your initial investments low. The key is to figure out what you can compromise on. For instance, having to powerwash your home before you sell it is no problem, but if you’ll have to rebuild a roof before you can put the space on the market, then that’s something else entirely.
Check the structural integrity of the home carefully when you’re looking for a bargain, and remember that location is often more important than how a home looks when it comes to attracting renters. Ensure that the neighborhood has plenty of things that appeal to a wide audience.
- Make Sure You Have the Right Finances
Finally, reducing the stress of investing in a home to rent means making sure that you have a good idea of all the finances that you’ll need to deal with, including estimating repairs and other important maintenance costs. Remember that the mortgage cost is only one of the expenses that you’ll need to consider, even if it is your largest outlay. You’ll also need to consider things like repair and maintenance costs too.
Buying your first investment property isn’t always easy, but the more prepared you are from day one, the more comfortable the process should be.
