by Barker Realty, Inc. | Apr 28, 2020 | Apex Investment Property, Cary Investment Property, Investment Property Blog, Raleigh Investment Property
On the surface, renting out investment property can seem like a dream: instead of toiling away all day in an office, you can kick back, contract out all the tough stuff, and rake in your rent dollars at the start of each month. We sincerely wish it were that simple! Unfortunately, the reality of property investing is that it’s as challenging as anything else. And, like anything else, your success depends on a number of factors, both within and outside your control.
The short answer? Yes, you can make money on rental property. As long as…
You Buy in the Right Place, at the Right Time
What qualities make a good rental property? Well, we’ve dedicated a whole blog to answering that question; but to make a long matter short, it’s all about location. A great investment property should be within driving distance of schools, shopping centers, grocery stores, hospitals and other amenities. It should also be in good repair; have reasonable property taxes; and have a low crime rate. The property you choose will be half the battle when it comes to making a profit, so be sure to work closely with a property management company or realtor with substantial industry experience. Timing matters, too: if you buy near the bottom of the housing market, your properties will likely increase tremendously in value.
You Have—or Can Build—an Emergency Fund
Furnaces; air conditioning units; roofing; sump pumps; pool repair. That’s just a very small list of things that you may have to fix at one point, which individual tenants aren’t responsible for (and which therefore can’t be paid for with security deposits). Now, in an ideal world, if you are charging high enough rents and spending as little as you can, you should have enough left over from your profits to cover big repairs. But since we’re not living in an ideal world, it’s likely that the repair money will have to come from your own pockets. That means that you’ll need to have an emergency fund already set up by the time you purchase your first property—and you’ll need to be the type who is budget-savvy and budget-loyal. If you currently love shopping and spending, that will have to change if you want to be a profitable landlord.
You Can Set Firm Rules and Stick to Them
Not only will you have to be firm with yourself, you’ll have to be able to be firm with your tenants—no matter how nice or forgiving you want to be. Unfortunately, some people will take advantage of temporary kindness for weeks, months, or even years until you work up the courage to put your foot down. A good landlord needs to be able to enforce rules in a non-confrontational, yet assertive way. If you struggle with doing that in your day-to-day life, you will probably struggle as a landlord.
You Approach Property Investment as a Job
We have been working in the Raleigh property management industry for over 30 years. What we see again and again in clients who are ultimately successful is that they approach property investing as a job, not as an escape from one. Even with the help of a property management company, being a landlord is a 24/7 commitment. Just like pursuing an expensive education, it’s a long, tough road with a big payoff—it’s not the “easy way out!”
For that reason, you will need one more quality to become a successful landlord: optimism. If you can’t weather ups and downs with courage and calm, you’re better off staying at a safer harbor.
by Barker Realty, Inc. | Aug 20, 2019 | Property Management Blog, Property Selection, Raleigh Investment Property, Raleigh Property Management
By anyone’s estimate, Raleigh is thriving. Our real estate and housing markets are experiencing a huge boon; our universities are growing and expanding; and increasing job opportunities are drawing young professionals from all over the country. We were curious to know what those jobs are, exactly—so we studied at the Bureau of Labor Statistic’s 2018 report (at the time of this writing, the 2019 report has not yet been released) to study the top occupations of Raleigh residents. Read on to learn more about Raleigh’s diverse career landscape!
Healthcare and Medical Occupations – 47,530 Employees
Raleigh is well-known for its prestigious hospitals and abundant medical research facilities. Patients travel to Raleigh from all over the country to take advantage of services offered by the Duke Raleigh Hospital, UNC REX Hospital, and WakeMed Hospitals. If you work in the healthcare field, you will find that Raleigh is rich in opportunities. (Note: The Bureau of Labor Statistics divides healthcare into two sectors: The Healthcare and Medical sector, and Healthcare Support (such as nurses, aides, and therapy assistants). For this list, we combined the sectors into one umbrella field with a total of 47,530 employees.)
Food Preparation – 59,650 Employees
Like any city, Raleigh has a thriving restaurant scene. Our diverse population has given rise to a diverse array of cuisines, including Indian, Thai, Korean, Mexican, Irish, Italian, Japanese, and Ethiopian—and the list goes on and on! If you’re a foodie who loves to sample new things, you’ll never find yourself without options in Raleigh. And if you’re a restauranteur dreaming of expanding, you’ll find a rich and hungry clientele.
Business and Financial Operations – 59,650 Employees
As we said in the introduction, business is booming in Raleigh. And that means that anyone who has to do with money—Adjustors and appraisers; accountants and auditors; analysts and real estate assessors; financial advisors—will find plenty of open seats here. Raleigh’s financial market is going strong, which is why no time has been better to invest in property.
Sales – 74,590 Employees
So far, the list has included management and financial occupations. Another key component of business? Sales. The #2 occupation in Raleigh is sales work, a sector encompassing retail workers and supervisors; real estate agents and sales brokers; and even telemarketers and models. Our population of young professionals starting out has a lot of demand for household products, appliances, and furniture, and many wealthier demographics retire here and can spend their leisure hours shopping. If you’re considering an investment property in Raleigh, you’ll find tenants with either plenty to spend, and lots of time to spend it; or busy young people with a lot of needs to fill.
Office and Administrative Support – 91,370 Employees
And what is the #1 most common job in Raleigh? The humble office assistant. Yes, of about 630,000 occupations surveyed, a whopping 91,370 perform administrative or customer service work that makes the rest of our lives easier.
The sector is likely so large because it’s so diverse: it consists of administrative support workers; bookkeeping and payroll clerks; bank tellers; customer service representatives; hotel desk associates; ticket agents; police, fire, and ambulance dispatchers; meter readers; postal clerks and mail sorters; legal secretaries, executive assistants, proofreaders…and many more! Surprising as it may seem, most of Raleigh’s employees are quietly in the background, making almost every industry run smoothly.
Looking for Investment Property in Raleigh? Call Barker Today!
If you’re looking to benefit from Raleigh’s thriving economy, call Barker Reality! We are a full-service real estate brokerage firm with more than thirty years of Raleigh NC property management experience. Our experienced agents can help you select an investment property, purchase it, and maintain it. To set up an appointment with one of our skilled property managers, click here.
by Barker Realty, Inc. | Aug 6, 2019 | Property Management Blog, Raleigh Investment Property, Raleigh Property Management, Tips for Property Investors
Raleigh’s thriving real estate boom and abundant career opportunities are drawing young professionals here from all over the country. But what are those jobs, exactly? To find out exactly what Raleigh employees are up to, we took a look at the Bureau of Labor Statistic’s 2018 report, which analyzed 629,570 Raleigh occupations. Below are some of the top industries in the City of Oaks.
Construction and Extraction – 28,420
With so many houses and rental properties going up everywhere you look, it’s no wonder that construction is the 10th most common occupation in Raleigh. Anyone who works in construction and development will find steady business here—from roofing, to flooring, to real estate and beyond.
Management – 31,060
Due to its centralized location and various other benefits, Raleigh is full of business opportunities, and is therefore host to plenty of advertisers, marketers, and managers. If you work in anything corporate or management-related, you’ll never find yourself without job options in Raleigh.
Computer & Mathematics – 35,840
With three major research universities within about an hour of each other, Raleigh is a major hub for science, research, and technology. In fact, Raleigh is smack dab in the middle of an area referred to as the “Research Triangle.” Scientists, students, and researchers flock to this area from all over the world to develop innovations that change lives.
Transportation & Material Moving – 36,450
As we mentioned, one of the best things about Raleigh is its ideal centralized location. To put things in perspective, it takes about 6 hours to drive from Raleigh to Atlanta, and 4 hours to drive from here to Washington D.C.—meaning that whether you’re going North or South, you will probably pass through Raleigh. Similarly, if you’re going across the state from Wilmington to Asheville, or vice versa, you will be able to pass through Raleigh, too. To sum up, all this makes Raleigh a favorite site for transportation, shipping and handling companies who find us extremely convenient to their operations.
Education & Training – 38,010
If you know how many universities and schools are located in Raleigh, our huge quantity of educators isn’t a surprise. Raleigh’s NC State University alone holds 30,000 students; Duke University, UNC Chapel Hill, and Wake Forest University are a few miles away. Raleigh’s primary school system has been nationally recognized for its diversity and innovation, as well. All that means that if you’re an educator or administrator, you’ll have plenty of opportunity.
by Barker Realty, Inc. | Jul 23, 2019 | Property Selection, Raleigh Investment Property, Raleigh Property Management, Tips for Property Investors
In our previous blog post, we discussed some potential risks that come with investing in Raleigh property, and how aspiring landlords can mitigate them. Below are even more tips on how to have a successful and profitable property investment experience.
Risk: You purchase investment property, but your tenants are constantly leaving.
Solution: Build strong relationships with your tenants.
The best way to gain uninterrupted revenue is keeping your tenants happy. This can often be accomplished simply by keeping the property clean and well-maintained. If a tenant submits a maintenance request, make sure it is taken care of right away. If there is an issue with trash, pests, animal waste, or something else, make sure that it is addressed.
You can also build positive relationships with your tenants. Send out holiday or birthday cards, hold community-building events, and try to be on a first-name basis with them. While these little touches take extra time, they are not a waste—they can be the difference between a rental property that is full and one that is empty. If you don’t have time to build relationships with your tenants (and manage the property and maintenance), a property management company can do it for you.
Risk: You invest in property in a good neighborhood, but struggle to attract tenants.
Solution: Stay on top of updates.
This goes back to what we said above: keep your property clean, pleasant, and well-maintained, and you’re more likely to both attract new tenants and keep them. Make sure you conduct a thorough home inspection between each tenant, and proactively repair any issues you notice. You can also add new amenities, replace outdated appliances, replace laminate floors with hardwood, and make other minor, yet important changes that will make your property more attractive. If you’ve done all you can to make the property clean, aesthetically pleasing, and in good repair, then your next step is launching a marketing or advertising campaign, which a property management company can also help you with.
Risk: You invest in a good property in a nice area, and keep it maintained, but for some reason, demand suddenly drops off.
Solution: Hedge your bets.
If you want to make sure that you earn a profit, and it’s within your financial power to do so, consider investing in multiple properties at once, in different areas. That way, if the housing market takes an unexpected dip, you will have another property which can continue generating revenue. The real estate market is constantly fluctuating up and down, so having a few eggs in different baskets isn’t a bad idea. If you aren’t sure which property you should purchase, again, a property management service can help guide your decision.
The Bottom Line: Nothing Is Risk-Free
If reading about all these potential risks is making you nervous, remember that all investments—whether business, stocks, or real estate—come with risk. As long as you do your research, put in the time, and consult someone with industry experience, you should be able to make a good profit off of your property—especially in Raleigh, which is one of the fastest-growing cities in the U.S.!
Interested in Raleigh Investment Property? Call Barker Realty
If you’d like to invest in Raleigh property, but find yourself overwhelmed with possibilities, call Barker Realty. We’ll help you identify and purchase a solid investment, then help keep it in top condition so you don’t have to worry. To schedule an appointment with one of our real estate specialists, give us a call here.
by Barker Realty, Inc. | Jul 9, 2019 | Property Management Blog, Property Management Company, Raleigh Investment Property, Raleigh Property Management
Investing in property can be personally rewarding as well as profitable. Ideally, prospective landlords can purchase a condo, duplex, or single family home; charge a monthly rent which covers the mortgage payment; and collect a little extra to make a profit. Eventually, if all goes well, you will be able to sell the property for more than you paid for it.
However, with all that said, nothing in life is without risk, and investing in property certainly has its own share of potential issues. Below are some of the most common risks when it comes to property investment, and tips on how to mitigate them.
Risk: The property’s value doesn’t rise over time.
Solution: Choose your property wisely.
The key to making a profit is choosing a good property at the beginning. Try to select a property which is in a low-crime area, has a good school district nearby, and doesn’t need major structural renovations. Not only will this help you find more reliable tenants, it will also ensure that your property value rises enough through the years that you can eventually make money off your investment. A realtor or property management company can help you identify and select a good option.
Risk: You purchase a “fixer-upper”, but end up spending more money on repairs than you make back.
Solution: Avoid “flipping” houses, unless you know what you’re doing.
Popular shows like “Flip or Flop” and “Fixer Upper” have popularized the notion of purchasing a low-cost house, repairing it, and selling it for a profit. However, this strategy rarely works out as well as it does on T.V. Most first-time property owners underestimate the time and money they will have to spend to make a profit, and end up losing much more than they gain. Unless you are very experienced in renovating properties, we recommend avoiding “fixer uppers” and choosing a property that is already in good condition.
Risk: You purchase investment property, but your tenants do not pay their rent on time and cause other problems.
Solution: Screen your tenants carefully.
Even though screening tenants takes more time than simply handing the keys to the first applicant who walks in the door, it is extremely helpful in the long run. Finding reliable, professional tenants who can be depended on to pay the rent on time will help you make a profit and give you peace of mind. Careful screening will also lower your risk of acquiring problem tenants, who may cause property damage or even force you to go through with an eviction. If you do not have time to vet applicants, you can outsource the work to a property management company. Contact Barker Realty today to start the conversation!
To read Part 2 of our series: How to Mitigate Risk in Your Raleigh Investment Property, click here.
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 21, 2019 | Property Selection, Raleigh Investment Property, Raleigh Property Management, Tips for Property Investors
After more than 35 years in the Raleigh NC property management business, we’ve seen almost every trick in the book when it comes to disguising a property’s flaws. If you’re browsing investment properties for sale this week, here are some red flags that might indicate it isn’t as new, clean, or safe as it appears.
New Paint and Carpet; Nothing Else
When sellers put investment properties on the market, it’s standard to give them a fresh coat of paint and new carpeting. But other details like the tiles, trim, and foundation will often be left as-is. Therefore, pay attention to these areas when browsing available options, and ask if the kitchen or bathroom have been updated. If not, it’s possible that the owner doesn’t have the budget to make any other harder-to-find improvements, either.
Cans, Bottles, and Noise
It’s always a smart idea to tour the neighborhood in which the investment property is located after hours. Listen and look for dogs barking, road noise, loud neighbors, beer cans, and trash. Note the location of the nearest college–if the property is near a lot of rambunctious students, it might be one to avoid (although your property will always be in high demand). You might also call the police department and ask how many reports have been recently filed in the neighborhood.
Excessive Caulk
It’s not always possible to tour investment properties when it’s raining outside, but if you can, it will allow you to see any water issues in the foundation. If you tour the property on a dry day, look for multiple, thick layers of caulk around windows and other points of entry, indicating that there might be a leakage problem.
Overwhelming Air Fresheners
If you walk into the property and are immediately hit by the scent of air fresheners, it might be covering up smells like animal urine, smoke, or mold. Most real estate agents light a candle or bake cookies to make a property more inviting, so a little bit of scent is to be expected, but if it seems that an entire can has been emptied, be wary.
Invest for Success with a Raleigh NC Property Management Company
Barker Realty, Inc. is a leading full-service real estate management, investment and development company in Raleigh and the surrounding areas. If you’re looking for a qualified, experienced Raleigh NC property management company, our agents are ready to help. Click here to check out our listings, and contact us here to set up an appointment!
