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. | Jun 21, 2022 | Local Property Management, Taxes & Financing, Tenant Management
It is not cheap to operate a rental property. The cost of operating a property goes up every year. Insurance rates, taxes and maintenance are some of the things that a rental property investor can expect to increase every year.
Our property managers often wonder whether they should raise the rent in order to cover the expenses. It is important to remember that raising the rent is not like asking for a raise. You cannot say that it is time for you to raise the rent because you have been there for three years.
Experienced property managers have to do a lot more than just send out a notice saying that the rent will be increasing. Your tenants may just move out. It can be hard for you to replace the tenants if the rent is too high and rental pricing should follow market value.
A rental property investor will have to decide whether it makes financial sense to raise the rent. You have to make sure that you will have to make an actual profit from raising the rent.
The rent increase has to cover holding costs for the next tenant. They also have to cover realtor commissions. You will also need to calculate repair costs and the changes that you will have to make before the new tenants come in.
For example, you currently charge $2,000 per rent. You increase the rent by $50 per month. You will only make an additional $600 per year. However, if it costs you $1,000 to make repairs and fill the vacancy, then you will not generate a profit.
It is important for you to not raise the rent above the current market value. Your current tenants will probably move out, and it can be difficult to fill the vacancy. You may find that you have to lower the rent in order to get a new tenant.
How to Tell Your Tenants About the Rental Increase
In many cases, it just makes sense to raise the rent. It is not based on the cost of insurance, maintenance or anything. The price is based on the market value. You will have to show the tenants that the increase is not due to your personal finances. It is due to market value.
Many tenants believe that property managers are rich and just in it for the money. That is why they are more likely to stay if they know that the rent increase is due to market value.
Want to know more about investment property management? Contact Barker Realty anytime.
by Barker Realty, Inc. | May 10, 2022 | Property Management Blog, Tenant Acquisition, Tenant Management, Tips for Landlords
Tenants are the heart of the property and if property managers and rental property investors do not have them this affects their investment. The property/properties become less desirable and they aren’t generating income. Property investors often have one question in mind, “How do you keep the properties filled in order to maximize revenue?”. One major answer to that question is communication.
From the Tenants Perspective
Many tenants believe that their property managers really do not care about them. They think that property managers are just there to send out letters and collect money. If that is the tenant’s point of view, then they do not have any reason to renew their lease. They may start looking for a new place to live long before their lease is up and at that point, it’s hard to get them back or to change their mind.
Communication is Essential
It is important to keep the lines of communication open between tenants and property managers in order to build trust in each other. Property managers should be able to address any concerns that the tenant has. Even if they cannot solve the problem right away, they should still show that they care about the issue and will help to figure out a solution. It’s a great feeling knowing that you’ve been heard.
Property managers can also show appreciation to their tenants. You can give your tenants a thank you phone call or offer other benefits for renewing their lease. These are small ways that you can let your tenants know that they are appreciated. This shows the tenant that their presence is appreciated.
Going above and beyond can make a major difference in tenant retention. It is important to make sure that your tenants feel as though their voices are heard, and they are valued. Keep in mind that if you are able to retain more tenants, then you will be able to bring in more rental income and have a better reputation for your investors or property owners as well.
Get in touch with Barker Realty if you are in need of a polite, experienced, and over-communicating property management company. We look forward to working with you!
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.
by Barker Realty, Inc. | Nov 9, 2021 | Tenant Acquisition, Tenant Management, Tips for Landlords, Tips for Property Investors
A lease is a lot like the rules to a game.
The key to getting everyone to follow the rules is to make sure that they are stated at the beginning, in writing and signed off on. A property management company does not have anything to enforce if there is no lease agreement. And same applies to you, the rental property investor.
The lease agreement helps the property management company and tenants understand what is expected of them as outlined below with some tips and insight from Barker Realty.
Key Components of a Lease
There are several things that a property management company needs to include in the lease to ensure it is strong and enforceable.
- The name of the landlord and tenant.
- The property address
- The terms of the rental payments (ie: when is rent to be paid, how much is rent, what’s included in rent, late payment policy, etc)
- Lease term: When it starts and when it ends
- Information about the security
- Whether pets are allowed
- Right of Entry: When can the landlord enter?
It is a good idea for a property manager to include a clause about subletting. Some tenants will want to sublet. However, you have to decide whether you will allow this. If you allow subletting, then the new tenant should have to go through the same approval process.
You will also need to let the tenant know how much notice is required to move out of the apartment when the lease expires. The typical length of time is requiring a 60-day notice. Keep in mind that if you do not include this in the clause, then you may lose one month of rent. You will not be able to get a new tenant until the lease expires.
Be careful about copying the template of other leases. This can be convenient, but it is important to note that laws can vary from state to state. That is why you do not want to use a California template if you live in Texas.
If you already have a lease agreement, then it is a good idea to double-check it. It is not too late to make the necessary changes. Make sure that all of the aforementioned items have been addressed properly and it’s never a bad idea to have an attorney review to make sure it’s buttoned up and fair to all parties involved in signing.
Taking the right steps will ensure that your lease protects your tenant, you and the property. Barker Realty has worked over our 30+ years of experience to develop a strong and enforceable lease. Contact us today for more information on our property managers in Raleigh for professional and reliable services.
by Barker Realty, Inc. | Apr 6, 2021 | Featured Article, Landscaping & Grounds, Repair & Upgrades, Safety & Security, Tenant Management, Tips for Landlords
Whether you constructed or bought the property you own, you understand how huge an investment it is. This is why you will spare no effort to ensure that your property is in good condition at all times. With regular property inspections throughout the year, you will not only ascertain the structural integrity of the building but will also have a chance to correct any defects in a timely manner so as to protect your asset. Even though you may have property managers, here are some other benefits of property inspections.
1. Documentation of Property Condition
Annual property inspections will give you a great opportunity to document lease violations at your property or unreported damage. By hiring a qualified professional to do the job, we will not only check for tenant damages but we will also assess the overall condition of the property.
2. Check & Improve Owner Liability
When you own property, regular inspections will help you be sure that your investment is safe and in good condition. Once you have had a professional property inspection done, you will easily establish whether appliances, such as smoke detectors & CO2 detectors, are in perfect working condition. As a property owner, you will have fulfilled your responsibility of a well maintained environment for all occupants of the building.
3. Avoid Deferred Maintenance
While your property management company may inform you of areas that need repairs and maintenance, there is a good chance that some specific areas will be overlooked. By addressing any structural issues in good time, you will not only avoid deferred maintenance and repairs but will also save a significant amount of money.
4. Validate Insurance Policies
In some cases, landlord insurance may demand that annual property inspections be carried out on your property. If you fail to do the inspections within the stipulated timeframe, you may risk losing coverage or getting the policy invalidated. This is why you should arrange for property inspections to comply with the requirements of your insurance policy.
5. Increase Tenant Retention
When you make sure that the structural integrity of your building is maintained, you will ensure that your tenants feel cared for. When they feel safe, this may help you to retain them, building a relationship for a considerable period of time. In the long run, you may enjoy higher and consistent return on your rental property.
Hiring a local Cary property management company like Barker Realty will also help to add value to your property. It is advisable to take time before settling on the property managers that will meet your needs. Contact us today to learn how we can help you enjoy the peace of mind that comes with property ownership.
