by Barker Realty, Inc. | Dec 20, 2022 | Property Management Company, Property Selection, Raleigh Investment Property, Tips for Property Investors
Choosing a new investment property in Raleigh NC can be an exciting, yet frightening, challenge. If you choose wisely, your investment will be likely to pay off in the long-term; if you choose poorly, you might find yourself with something that’s more trouble than it’s worth. Not to worry, though: our experienced Raleigh NC property managers know exactly what you should look for. Here are a few of our tried-and-tested tips.
Quality Neighborhood
The quality of the neighborhood will determine the type of tenants you attract. If you purchase investment property near a university, for example, it is likely that students will dominate your pool of potential tenants. Some landlords prefer leasing in these areas, because the steady flow of students means the units will always be in high demand. However, there are also many downsides of renting to students, too. Wherever you are considering purchasing investment property, study the area carefully and try to get a “feel” for the type of residents living there.
Affordable Property Taxes
Property taxes tend to vary widely, especially in Raleigh. High property taxes are not always a bad thing if they’re applied to a great neighborhood that attracts long-term tenants, but be aware that there are less-desirable places with high taxes, too. The municipality’s assessment office will have all the tax information you need on file, and if you need help understanding what to look for, a realtor or property management company can help.
Schools in Close Proximity
Nearby schools are generally a good thing for homeowners and landlords, regardless of whether or not you personally have children. Families with children will always want to live near a reputable school, and this means that the property will be more valuable. If you are planning to live in or near the property and manage it yourself, however, be sure to factor in the hassle of the morning and afternoon school rush, which might become a nuisance as you travel to and from the area.
Low Crime Rates
Obviously, you will want a property that is low on crime. This will both make it easier to attract and retain quality tenants, and reduce the risk of vandalism, theft, and break-ins on the property itself. To determine the area’s crime statistics, you can contact the local police or public library. Try to note whether the recent crimes are petty, or serious, and whether the felony crimes are frequent, or scattered outliers. One other good tip for both landlords and renters scouting out a property: ask the local pizza delivery drivers what they think of the area. They will have personally interacted with many of the residents, and probably have a “No Delivery” list for high-danger areas.
Choose a Great Raleigh NC Investment Property with Barker Realty!
When you’re considering purchasing rental property in Raleigh, an experienced property management company can help you make the best decision! After you have made your investment, we can help you manage tenants, rent, property maintenance, and more. If you’re ready to become a Raleigh landlord, call Barker Realty today.
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. | Jan 5, 2019 | Property Management Blog, Tenant Acquisition, Tenant Management, Tips for Landlords
Even though you’re excited to rent out a freshly renovated apartment building or single-family residence, don’t let your enthusiasm cloud your vision. Even though you undoubtedly want to rent to the first bidders, it’s important to find the right people who will bolster positive tenant relations (and treat your property with respect!) Here are some real estate screening tips that will help you find quality tenants.
Always request an application
Having a potential tenant fill out an application lets them know that they will be thoroughly screened. Many prospective renters with troubled rental histories will bow out gracefully upon seeing your intent to investigate their past. An ideal candidate will have no issue with both credit and background checks.
Run a credit check
In some cases, consumers have figured out the credit reporting system and know that activity is reported every 30 days. They could be using this time to apply for residence because they know that their credibility will drop soon. The best way to gain insight into a potential renter’s payment habits is to review their credit activity over the past seven years. Even if a prospective tenant has a strong credit score, they may still have missed payments or a significant income-to-debt ratio.
Run a background check
It is important to run both a background check and criminal records check on every prospective tenant. An applicant who has made a mistake or two in the past may have just fallen on hard times, but someone who is consistent with his offenses may be bad news for your property.
Need property management in Raleigh? Call Barker Realty
Finding and managing tenants isn’t easy. Signing a bad tenant can easily cost a real estate investor thousands of dollars if the deal goes south, or damage existing tenant relations at the very least. Hiring a Raleigh property management company like Barker Realty is an excellent way to save time and reduce frustration with the whole process. For just a small monthly fee, we can quickly find and screen tenants and protect your investment property. If you have more questions or have more property management questions, just give us a call!
