by Barker Realty, Inc. | Jan 10, 2023 | Raleigh Property Management, Tips for Property Investors
In our previous post, we discussed the four biggest reasons people move to Raleigh: its abundant job opportunities; access to world-class healthcare; its nationally-ranked higher education options; and its unique central location. But there’s another big reason why people come to Raleigh—it’s fun! Raleigh’s thriving arts, sports, and foodie culture make it chock full of things to do. Below are a few reasons to invest in Raleigh NC property.
Arts, Culture, & Nightlife
Raleigh’s many colleges, and its status as one of the best cities for young professionals, attract young people from all over the country. As a result, Raleigh’s population is extremely young and vibrant. Every weekend sees people flocking to Raleigh’s numerous music venues, theatres, museums, restaurants, and bars. And if the usual nighttime scenes ever get boring, there’s always a concert, festival, or parade happening in Downtown Raleigh.
Basketball & Football
With three major universities located just minutes away, Raleigh’s sports rivalries are fierce, loud, and historic. The NCCA and ACC tournaments are practically city holidays in the Triangle, with every street, hotel, and barstool filling up with excited fans. When basketball season is through, you can watch NC State, UNC, and Duke go at each other again on the football field.
Warm Weather & Greenery
Nestled in the middle of the Piedmont, Raleigh is situated on mostly-flat land that gently slopes eastward towards the coastal plain. The climate is somewhat beachy, too: breezy and mild, with short, warm winters. Snow is a rare occurrence, and it’s rare for the temperature to drop below freezing. Raleigh’s balmy climate make it a favorite choice for retirees and, well, everyone. (The pollen, on the other hand, is another issue.)
Crime & Government
According to the FBI’s Uniform Crime Reports, Raleigh’s reported crime incidents are usually lower than the state and national average. Its neighboring city, Cary, ranks consistently as one of the top 3 safest cities in America.
On a somewhat-related note, Raleigh is also a great place to live if you would like to become more politically involved. As the capital and seat of government for a noted “swing” state, Raleigh is a theatre where national conversations are always playing out.
Need a Raleigh Property Management Company? Call Barker Realty
If you need help finding an investment property management company in Raleigh, contact our agents at Barker Realty. With over 35 years of experience in buying, selling, and managing investment property, we have the experience and industry know-how to help you find a great investment. To schedule an appointment, click here.
by Barker Realty, Inc. | Dec 6, 2022 | Property Selection, Raleigh Investment Property, Taxes & Financing, Tips for Property Investors
Owning property is a great investment, as it requires little daily effort once you’ve made the initial commitments. If you’re ready to break into the Raleigh real estate market, here are some real estate investment tips that will help you launch your investing career.
Remember that real estate property appreciates
Unlike some purchases, like cars, your real estate property investment will not necessarily depreciate after your purchase. In fact, some property owners find that the value of their investment far exceeds what they paid. For example, if you buy a single-family home or apartment building for a low price, manage it through a real estate management company, and sell it after it appreciates, you can get an excellent return on your investment with minimal trouble or hassle.
Don’t be afraid to start small
Perhaps you cannot currently afford to invest in a large apartment building–or you can, but are nervous about making such a big commitment. Not a problem! Even if you purchase a small house and rent out the property to tenants, you are still considered an investor. You can gain experience with your smaller purchase, and then work your way up to a bigger investment over time.
Work with a professional real estate manager
Rental property doesn’t come with the uncertainty that many investors suffer when putting their money into the stock market–but it does come with some risk. In order to ensure the best success possible, work closely with a real estate management company to understand the cost of maintaining a certain property; taxes and insurance requirements, and all the other details.
Build up a budget
While real estate can yield substantial returns in the long run, you should expect a minimal return for the first two years. For that reason, you may want to consider paying for your property in cash, so that you do not accumulate interest or risk foreclosure. You can also, of course, take out a small loan, if you are confident that you can pay the mortgage without monthly rent coming in. Barker Realty’s experienced sales brokers can help you explore the best financing option for you.
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. | Jun 18, 2019 | Local Property Management, Property Management Blog, Property Management Company, Tips for Property Investors
Buying an investment property is a great way to generate a healthy income stream. However, it’s not as easy as buying a unit, renting it out, and letting the payments come in. Property management takes a lot of patience and hard work, and if you don’t want it to become your full-time job, your best bet is finding someone for whom that’s the case. A property manager can take all the worry off your shoulders so that you really are making money with minimal stress.
Here are some ways property management companies can make your life much easier!
Tenant Management
Tenants require a significant amount of interaction, especially if you have several at one time. Maintenance issues pop up; rental payments are due; and other tiny issues occur which need to be addressed, lest you risk bad word of mouth or even litigation. A property management firm takes over all day-to-day tenant interactions and responsibilities so that you don’t have to constantly be on call 24/7.
Tenant Acquisition and Eviction
A property management firm will advertise open units, interview and screen prospective tenants, draw up leases, and handle move-ins and move-outs, saving you a significant amount of time and hassles. In the worst-case scenarios, they are also responsible for handling evictions. One big bonus of working with a property management company is that they are knowledgeable in the legal aspects of the eviction process, and will generally know how to proceed better than a new or inexperienced landlord.
Paperwork
For some, one of the best aspects of hiring a property management firm is handing over the paperwork to someone else. A rental management firm can complete all the paperwork involved in finding and screening tenants, checking credit reports, conducting background checks, drawing up lease agreements, and keeping track of monthly rent. If you own an entire building with a high turnover rate, the reduction in paperwork can be well worth the cost of hiring a property management company.
Repairs and Maintenance
As a landlord, you won’t just own a house or building – you will also likely own the land it’s sitting on. In addition to the repair and maintenance of buildings and individual units, you will also need to devote some resources to making sure the land is attractive and well-maintained. That can include planting and keeping flowerbeds; repairing pathways; mowing lawns; installing grass sprinkler systems; and scheduling regular pest control. A property management company can hire the contractors or landscapers that will perform this upkeep and ensure that the work is being performed adequately.
Final Thoughts: Should I Invest in Raleigh Property Management?
If you have the time and expertise to manage your own property, and if you are comfortable being on call 24/7 to handle various issues, you may find that you prefer to manage your property yourself. However, if your time is already booked with other responsibilities, or if you find interacting with people stressful, you are probably better off hiring some outside help. Once you’ve outsourced the work to someone else, you can breathe easy and enjoy the benefits of your investment property!
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.
