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. | 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. | 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. | Feb 8, 2022 | Landscaping & Grounds, Pest Control, Raleigh Investment Property, Tips for Landlords
Termites are unfortunately a problem many homeowners and investment property owners face. If you are looking at investment properties for sale, or suspect your property has a termite problem, here are some ways to identify termites and the damage they cause.
Termite or Flying Ant?
Both ants and termites can have wings, but on termites, both pairs of wings are the same size. In flying ants, the front wings are much longer than the back wings. Another difference to look for is the “waist” of the insect. Termites will have no apparent “waist” or midsection between thorax and abdomen, while ants do. Finally, look at the insect’s antennae. Termite antennae are straight, while ant antennae are bent.
Drywood Termites
There are two different types of termites that can cause serious damage to a home: Drywood termites, and subterranean termites. Drywood termites usually cause less damage, as they work more slowly and have smaller colonies. They can be identified by the small, firm pellets of waste they leave behind, as well as their red bodies and black wings. Drywood termite damage will usually be found near the roof or wherever there are exposed beams.
Subterranean Termites
Subterranean termites are more problematic, as they live in large underground colonies composed of elaborate tunnels. They usually work from the ground level up, often entering a home through a crawlspace or sub-structure. Subterranean termite damage usually appears in a honeycomb-like pattern, with tunnels woven throughout the soft inside wood. Wood damaged by this type of termite will break easily, revealing hollowed-out insides that are filled with mud or soil.
How to Get Rid of Termites
If you suspect that your property has termites, and you are working with a property management company, all you have to do is report it and they will take care of hiring exterminator to kill the insects, and a contractor to replace the damaged areas. To prevent future bug problems (including roaches, ants, and so on), your property management company can also arrange for regular pest control sprayings and inspections.
Take Care of Your Investment with a Raleigh 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 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!
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.
