A lot of landlords and property managers only go to their properties when there is a problem. The trouble is, by the time a problem arises, you usually have many more problems to deal with—along with the problem that originally brought you to the property.

You should have a maintenance plan or property management team like Carolina Living in place so you’re in your property at least once every six months. When you get a new tenant, you should inspect their unit within the first two months. You want to make sure that the tenants are treating the property with respect. You want to point out any damage that they may have caused, and tell them that you will be sending your maintenance man over to fix it, and how much it will cost them.

Do this at the beginning and it will set the tone for your relationship with the
tenant. Then every six months or so, you’ll want to do another inspection. You can
either schedule it or surprise them. I like to surprise them; then I know exactly
how they are living.

You’ll want to go into the basement and make sure it is not being used as a storage
facility; same with the attic. When tenants store items in your basement or attic,
those are usually the things they leave behind when they move out. Then you have
to pay to dispose of the items. If these are allowed, then the return of security deposits should also be tied to the removal.

You’ll also want to check the plumbing inside the units and in the basement for
water leaks. The most common profit-losing problem is a toilet that will not stop
running, or a dripping sink. In no time you could be faced with large water problems.
Make sure tenants are not throwing trash all over the yard, or leaving unregistered
cars on your lot. Once trash starts piling up, it attracts more trash. Pretty soon
your property is the neighborhood junkyard.

Periodic inspections will save you money and tenant turnover. Then when problems arise, they will not be big ones.

Carolina Living Property Management is your Charlotte Property Management and Lake Norman Property Management of choice. We do inspections and drive by’s periodically to make sure your asset is being taken care of.

We can all renovate a house and have it come out looking like the Taj Mahal, but that will not put the most profit in our pockets. You should put out a quality product and do your repairs properly. You shouldn’t cut corners or hide defects in a house. At the same time, if you’re renovating a $75,000 house, you do not want to install marble floors, Corian counters, and replace the exterior siding with clapboards.

You want to do the repairs that will give you the biggest return for the money. If you’re repairing a rental unit, you should use materials that will last. Plastic commercial tile floors for the kitchen and baths are better than the 12” x 12” stickons; commercial-grade carpet and countertops are designed to hide cuts and dirt. If you’re renovating a house for resale, you want to focus on the kitchen and baths.

Spend all of your extra rehab money in these rooms, because these are the rooms that will sell your house. They should be bright, clean and shiny.

Bring the house back to a like-new condition without making everything new.  It’s amazing how a little paint and cleaning can change the appearance of a house or an apartment. When planning your repairs, repair anything that is broken or outdated, but don’t go around the house installing all new cabinets and counters if you don’t need them.

Remember, make it nice and put out a quality product, but at the same time, keep in mind that you are not going to live there. The people who buy the house are most likely going to make changes, anyway.

Just read an interesting article from Rentals.com that discusses how landlords should attempt to save annually for repairs. 

Becoming a landlord doesn’t just mean worrying about keeping your property rented and to the right tenants. You also need to be sure you have budgeted for necessary repairs. Read the rest of the article for some tips on how to plan ahead for the inevitable repair bills. 

With Carolina Living Property Management, we strive to work with companies that will do repairs with quality workmanship and for the best price.  Our standard agreement allows landlords to specify at what amount we are allowed to get items repaired without prior approval.   

We keep the tenants happy and the property in good shape but you control at what cost.

Contact us and let us know how we can help you with your Charlotte Area Rental Property.

Charlotte Property Management update:

As a property manager it is our job to be aware of the rights of our homeowners but also be aware of the rights of our tenants.  While we represent the homeowner in our management agreements, it is important to understand what recourse our tenants have in cases where the homeowner is in trouble of financially.

First, as of Oct. 1 2007, any loan servicer acting for the mortgagee  or trustee who is foreclosing on residential must send by first class mail a notice of foreclosure sale to all tenants at least 20 days prior to sale date. If tenant name is not known, the notice must be sent to occupant.

The rules changed dramatically on May 20, 2009, when President Obama signed the “Protecting Tenants at Foreclosure Act of 2009.” This legislation provides:

 Leases would survive a foreclosure — meaning the tenant could stay at least until the end of the lease, and that month-to-month tenants would be entitled to 90 days’ notice before having to move out (this notice period is longer than any state’s non-foreclosure notice period, a real boon to tenants).

The law permits (with one exception noted below) all tenants of residential real property under a lease entered before the the issuance of a notice of foreclosure on the lease property may continue to occupy the lease premises until the end of the lease term.

There is one excpetion to the tenants right to keep possession under the pre-existing lease.  If the purchaser at foreclosure will occupy the lease property as a primary residence, then the tenant’s lease may be terminated with 90 days notice to tenant.

What defines and amateur real estate investor?

1. They look for the easy buck.
2. The outbid the real market because ‘everything is going up’
3. They have no exit strategy
4. They do very little real analysis

When amateur investors get in and buy too high, it creates a false market.  Amateurs usually do not have cash flow which sets up a downfall or ‘crash’.  When this crash occurs the amateurs usually have to sell off at a loss.  This is when the experienced investors step back in and buy cheap. 

Bottom line is don’t be an amateur.  Hire good advisers (real estate agents, lenders, inspectors etc.) and make sure you have cash to sustain you during the down times.  Real Investors buy and hold and then buy up with tax exchanges or cash from other investments. 

Let us manage your investments today and advise you on what the good buys are for todays rental market and tomorrows selling market.

I was reading a book by Donald Trump, “The Best Real Estate Advice I Ever Received” about real estate investing and came upon a chapter talking about success in Real Estate investing.

Since we represent numerous investors in the Charlotte and Lake Norman areas, we felt ti was appropriate to share these real estate tips.

Buy and Hold – While flipping is what many investors try, it is risky business.  Wealth is not usually made overnight in Real Estate.  Buying and holding can create bigger long term gains.

Don’t sell, do a 1031 Tax Exchange – Many real estate practioners advocate that when you want to get out of an investment, trading up is the way to go.  Using a 1031 Tax Exchange will defer your tax gains and save you money and will allow you to buy the next property you want.

Cash Reserve Trumps Cash Flow – Having both is the optimal situation but logic tells is that cash reserve eases of the pain of vacant properties and needed repairs.  Having to deal with vacant properties or repairs have led to many many foreclosures and does not lead to wealth.

Hire Carolina Living Property Management.  Ok we changed that one a little bit but one of the tips did mention hiring a property managment company you can trust.  We feel we are that company!