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How Does Rent To Own Homes Work in Charlotte?

November 27, 2016 by

Rent to own a house is also called lease to own house (or a whole slew of other phrases… like “lease option”, etc.).

So how does rent to own homes work in Charlotte and other parts of NC?

How Does A Rent To Own Home Agreement Work?

It is kind of similar to a car lease.

In this kind of arrangement, the renter rents a house from the owner of the house and pays monthly rental fees for living in the house. After a given period of time, negotiated up front, the renter can decide to purchase the house at a price that the renter and owner of the house agreed upon at the start of the rent to own agreement.

Of the monthly rent paid to the owner, a fraction can sometimes go towards down payment of the house depending on the local laws and guidelines. Sometimes applying part of the monthly rent to the purchase price is now against the law because of a law passed by Congress called the Dodd Frank Law.

The Rent To Own Contract Agreement – How It Works Here In Charlotte

The contract the buyer and seller draw up should be very clear. You should understand the nature and terms of the contract properly before signing it.  Make sure you ask the seller lots of questions if you’re not clear about anything at all.

This arrangement has got advantages for both sellers and buyers alike… but also some huge benefits. So understand both the pros and cons so you can make a great decision for you and your family.

The Financial Parts Of The Rent To Own Agreement

First, the seller has to set the purchase price and monthly rent for the house.

The Monthly Rent

The purchase price is usually retail value for the house in today’s market.  The monthly rent is usually a bit higher with a rent to own / lease option agreement than if you were to just rent a house normally.

Why?

Because you’re paying for the ability to purchase that house at the end of the agreement and you’re locking that house down so others can’t purchase or rent it during the entire term of the agreement.

The Purchase Price

The agreed and signed price and rent is settled and locked during the entire rental period of time, which is usually between one and three years.

The agreed price doesn’t change during the agreement based on market prices in Charlotte, whether they rise or fall.  That’s one of the big benefits of buying a house here in Charlotte with a rent to own… that you can lock in to buy a house at a price today… and not have to buy the house for 1 – 3 years… and that purchase price won’t go up over those years.

 

The Option Fee / Upfront Payment

There is an option fee that the buyer pays the seller. It is a set amount of money payable to the seller by the buyer before you move into the house. This amount can really vary based on who you’re working with and the house price… but a rule of thumb is usually 1-5% of the total house purchase price is what you can expect to pay upfront to enter the agreement… and this payment is usually non-refundable if you decide to NOT buy the house at the end of the agreement.

This option of buying a house in Charlotte with a rent to own agreement is very good for buyers who would otherwise be unable to purchase a house or whose credit score wouldn’t meet the required threshold for a mortgage.

For sellers like us, the rent to own opens up the potential “buyers pool” so we can help more people get into great homes.

For buyers, it lets you work toward home ownership and have that sense of pride you feel when you own a home.

The End Of The Rent To Own Agreement… What Happens?

Of course the idea of getting into a rent to own home in Charlotte NC is that during the rental term… you improve your credit and financial stability so you can get a normal home loan at a bank.

So during that whole period… you should be really working to improve your credit… save up money… and work with a local Charlotte mortgage broker or bank to get pre-qualified BEFORE the rent to own agreement expires.

At the end of the rental period, you as the tenant / buyer have the choice to either buy the house at the price in the agreement… or you can walk away and not buy the house just like a normal rental house.

If you choose not to buy the house, no biggie at all.  You can move out of the house and onto another house… or under special circumstances you may be able to update the rent to own agreement to give you a bit more time to get qualified for a bank loan to buy the house.

With our local Charlotte Rent To Own Program our ultimate goal is to help you reach your goal of home ownership. So we can be flexible often times if you need an extra few months to get things lined up financially and with the bank to close on the house.

Just like in any other way of buying a house in Charlotte, there are mutual pros and cons for both the buyer and seller.

So just do your research… keep browsing this website and check out our Frequently Asked Questions page… or give us a call anytime at  704 451 7051 or shoot us an email on our Contact page to chat with us and our local rent to own program.

Last… have you found the [market_city] rent to own house that’s perfect for you yet?  If not, join our Early Property Alert List below to get email alerts quickly when we have new rent to own houses in the Charlotte NC area available.

Sign up today for help around Charlotte, NC Here >>

Filed Under: Property Management Tips Tagged With: ,

4 Costs Associated With Rental Property Charlotte

November 6, 2016 by

Carolina Living Real Estate has lots of experience advising investors with the purchase of Rental Property in and around Charlotte. If you’re thinking about investing in rental property, you’re probably doing your due diligence to make sure it’s right for you. Likely, one step in that due diligence is figuring out what expenses you’ll pay. Smart! To help you, we’ve created this list of 4 costs associated with rental property in Charlotte…

When it comes to investing in rental properties, it’s easy to think of the cash flowing income. But remember that your profit doesn’t come from the gross rent but what’s left over after your expenses. For that reason, here are 4 costs associated with rental property in Charlotte that you should be aware of…

4 Costs Associated With Rental Property In Charlotte and the Surrounding Areas.

#1. Taxes And Fees

One of the costs you’ll have is the property tax you’ll pay, which could include property tax, school tax, municipal taxes, waste and recycling tax, HOA fees, as well as any potential income tax on your rental income. We can’t give you an exact amount that you’ll pay (it depends on a number of factors) but you should be aware of what the taxes will be.

#2. Insurance

Rental property is an asset and you’ll want to make sure that you and your asset is protected. For that reason, you should insure it. Make sure you insure the property and structure against damage (such as fire), as well as have some liability insurance in case your tenant or a visitor hurts themselves. Your tenant should also have insurance on their belongings.  Your Charlotte property manager can assist with ensuring the tenant has the adequate insurance.

#3. Upkeep

Another cost, which may be harder to estimate ahead of time, is upkeep costs. This includes things like the costs to maintain and repair the furnace, hot water tank, roof, and the plumbing and electrical systems in the house. Upkeep costs would be incurred whether you live in the house or your rent it out, and they’re important to ensure that your rental property is a nice place to live.

#4. Time

This last cost might surprise you but it’s the cost of owning a rental and dealing with tenants. You’ll need to spend some time finding a tenant, doing a background check, making sure they pay their rent on time, and occasionally checking on the property. And, since “time is money”, there is a cost implication to you. It can be minimized, though, with an investment into a good property and Carolina Living Property management team.

Summary

Before you let this list scare you away, remember: every investment has costs… whether it’s the transaction fees or management fees charged by your stockbroker or mutual fund manager, or whether it’s these 4 costs associated with rental property in Charlotte. What’s important for you to decide is whether the benefits far outweigh the costs. And when it comes to rental property, we believe they do.

Want to see what rental properties we have available in our inventory? We’d love to show you. Click here now and fill out the form to get access or call Roby at 704 451 7051 and we’ll make sure to get a list of our latest rental property inventory over to you right away.

Filed Under: Charlotte Property Management, Lake Norman Property Management, Property Management Tips Tagged With: , ,

What Makes a Good Rental Property around Charlotte?

October 28, 2016 by

If you’re thinking about investing in rental property in Charlotte NC or anywhere in the Lake Norman area you might be wondering what makes a good rental property in Charlotte. We’ll share with you 3 of the factors to see if rental properties are right for you…

Rental properties can be a great investment. From the cash flow to the security of owning a real asset, real estate investors have known for a long time that rental properties are an amazing asset to keep in your portfolio. But one question persists that needs to be answered before you invest, “What makes a good rental property in Charlotte?”

After all, you don’t want to invest in ANY property – you want to invest in the right one! So, here are 3 of the best factors that make up an ideal rental property in Charlotte and surrounding area.

What Makes A Good Rental Property In Charlotte and Lake Norman?

#1. Strong House, Cosmetic Upgrades Only

Unless you’re handy, or have a lot of experience, you may not want to invest in a house that requires a lot of effort to get it ready to rent. After all, every day that you delay renting is a day that you don’t get the cash flow you desire. A strong, well-built house that is free of problems and only needs cosmetic upgrades is a great place to start. Yes, you might pay a little more up-front for this kind of property but you’ll save time and money afterward in getting it ready to rent.

#2. Affordable

While you might want to spend a little more for a house that is already in good condition, you’ll still want to make sure that it’s affordable. In the Charlotte area, there’s a mix of properties – some are affordable and others are not. (This is what we do here for you – we find the affordable ones! Give us a call at 704-451-7051 or click here and fill out the form to see some affordable rental properties in the area.)

#3. Good Rental Market

You also need to make sure that this is a good rental market. The truth is, not all markets are good rental markets. In some areas, everyone buys and nobody rents; in other areas, everybody rents but they move too much. A good rental area is one where there are plenty of long-term renters.

Summary

These three factors exist in rental properties throughout the Charlotte area and we can help you find them. In fact, we’ve got an inventory of properties that meet these and other requirements for what makes a good rental property in Charlotte… and our clients love working with us because we help them bypass the time and effort required to FIND these properties, since we’ve already done a lot of the legwork.

Want to see what rental properties we have available? Click here now and fill out the form or call our office at [phone] and we’ll be happy to take the time to show you what’s available.

Filed Under: Property Management Tips Tagged With: , , ,

Carolina Living Property Management Additional Services

October 17, 2016 by

Here at Carolina Living Real Estate, we offer stellar property management services but that is not all we do.

Rent to Own Charlotte

We help buyers/tenants find Rent to Own Properties around the Charlotte area.  While we can’t guarantee that we have any of these properties on hand, we like for those looking for these opportunities to let us know so if we do come find the right one, we will do what we can to help both the seller and buyer.

Sell Your Home Fast Charlotte

We are investors in addition to being property managers.   I believe if you are honest in your business endeavors and you SERVE first, you will succeed.  Our company is no different. Our first goal is to provide a real practical solution. We  have no problem directing potential sellers that come to me who need to sell their house fast in Charlotte, to another source if we feel that would be best for them.  I would like to think we are not like other “We Buy Houses in Charlotte” companies.  We are a family own company who follow family values and we remain small for the purpose of being personally involved. We strive to provide great customer support EVEN if we don’t buy your house

Investment Homes Charlotte

Are you an investor looking for new opportunities?   We can help.  We work with numerous investors that we present properties when they present themselves.   Just tell us what kind of Investment Homes in Charlotte you are looking for and we will be glad to help you meet your goals.

Filed Under: Property Management Tips Tagged With: , , ,

Tenant’s Right to Break a Rental Lease in North Carolina

August 29, 2016 by

Charlotte Property Management – Tenant Rights

According to Marcia Stewart with the website www.NOLO.com .

A lease obligates both you and your landlord for a set period of time, usually a year. Under a typical lease, a landlord can’t raise the rent or change other terms, until the lease runs out (unless the lease itself provides for a change, such as a rent increase mid-lease). A landlord can’t force you to move out before the lease ends, unless you fail to pay the rent or violate another significant term, such as repeatedly throwing large and noisy parties. In these cases, landlords in North Carolina must follow specific procedures to end the tenancy. For example, your landlord must give you 10 days’ notice to pay the rent or leave (North Carolina Gen. Stat. § 42-3) before filing an eviction lawsuit. If you have violated a lease term that specifies that eviction will result from noncompliance, your landlord may give you an unconditional quit notice that requires that you move out immediately. (N.C. Gen. Stat. § 42-26(a)).

Tenants are legally bound to pay rent for the full lease term, typically one year, whether or not you continue to live in the rental unit—with some exceptions:   Read the rest at http://www.nolo.com/legal-encyclopedia/tenants-right-break-rental-lease-north-carolina.html

 

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Security Deposit – A Word to Tenants from Roby Robertson

July 7, 2016 by

Charlotte Property Management – Tenant Security Deposits

Carolina Living Real Estate and Property Management gives advice about Security Deposits!

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Trying to Sell Your Charlotte Area Home with Tenants Still Living Inside?

June 23, 2016 by

Charlotte Property Management – Selling Your Investment

These 3 Tips Will Make Your Life Easier

 

Are you thinking about selling a home that you have rented out for some additional revenue? If so, you’re likely trying to discern how to best inform the current tenants and conduct the sales process in a way that works well for all of the parties involved. In today’s blog post we’ll explore how to sell your home while you’re renting it out to tenants and share three tips that can make the process a bit easier.

 

#1: Review Local Laws and Your Tenancy Agreement

First, you’ll want to break out your tenancy agreement and download any state, provincial or municipal laws that apply to landlord-tenant relations. Selling a home with renters living in it can result in a number of sticky situations. You’ll want to ensure that you conduct yourself in accordance with the rule of law as you may end up in court if the process goes sour.

#2: Communication is a Vital Part of the Process

Next, you’ll need to ensure that you’re communicating with your tenants every step of the way. Meet with them to let them know that you would like to place the home on the market, and explain how the sales process is going to work. Allow your tenants to ask questions and to state their case as they may be willing to buy the home from you if they can afford it. Be polite but firm; you don’t want to encourage any hostility but this is your property and ultimately, your decision.

Don’t forget to fully inform your tenants as to how home showings will work, as they’ll likely be concerned as to who is being provided with keys to their home.

 

#3: Incentives Can Sway an Unruly Tenant

Finally, if you’re faced with some unruly tenants that are making the sales process challenging you may find that financial incentives to help the process go smoother. You’ll need their cooperation in keeping the home relatively clean and tidy, so you may want to consider offering some gift certificates or paying a portion of the rent in exchange for their help. If you’re hosting an open house over a weekend, offer to put their family up in a nice hotel somewhere in town where they can enjoy a weekend together.

While selling a home with tenants living inside is rarely easy or fun, it’s certainly doable. When you’re ready to learn more about the home selling process, contact your local real estate agent as they can share their expertise and guidance to ensure you get the most from your sale.

Contact Roby Robertson,  He has experience in this area.

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Carolina Living Real Estate – More About Us

August 11, 2015 by

carolina living real estate

Filed Under: Charlotte Property Management, Lake Norman Property Management, Property Management Tips Tagged With: , , , ,

Another Reason To Choose Carolina Living Real Estate

July 7, 2015 by

Your Charlotte Property Manager

We get asked all the time “why we should use your company as our Charlotte Property Manager”. It is sometimes difficult to explain because most people are just looking at the monetary aspects of our services.

We do have a very low management fee compared to other companies in the Charlotte and Lake Norman areas.  Also, what seems to set us apart is that we don’t hit our owners with huge fees just to set them up in our system and find a tenant.   While this is important, it should not be the defining factor.

I tell our prospective owners that in 10 years we have only been to court 3 times.  2 of these times, we went to represent our owners in a security deposit dispute.  The third was actually to evict a client that ultimately left on their own.

  • One of our very important roles is to keep our clients out of court.  We do this by doing a few things we feel are very important and  quite frankly, very difficult for the really large companies.
  • We try to be very thorough in our vetting of tenants.  We do not hesitate to recommend turning someone down if we are comfortable with the fit.
  • We create addendum to our leases tailored to our owners wishes and we are try to prepare both owner and tenant with expectations.   With regard to this bullet, we believe communication is very key to explain what things actually land people in court.  With these explanations, it almost always ends in  a positive way.   One of the very difficult items for owner so understand is what is ‘normal’ wear and tear.   While it is a very gray area with some items, this is really about communication.

When evaluating Charlotte Property Management companies, don’t just look at the percentage.   Look at the companies that work hard a fully managing the process.

Good luck and please don’t hesitate to contact us if you want more information.

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Why You Need a Professional Property Manager

January 12, 2014 by

The Benefits of Hiring a Carolina Living Real Estate and  Property Management

Saves you time, work, and stress:

You don’t have to hire someone to clean, paint, or make repairs.
You don’t have to advertise, take rental calls, and show the property.
You don’t have to screen applications and be apprehensive about who to pick.
You don’t have to execute a rental agreement, worry about adding addendums, fill out the
move-in inspection report, and deposit money.
You don’t have tenants calling at all hours of the day and night.
You don’t have to confront tenants on tough issues like collecting rent or taking better
care of the property.
You don’t have to collect NSF checks.
You don’t have to serve legal notices or start an eviction.
You don’t have to schedule and fill out the move-out inspection report.
You don’t have to mail the tenant’s accounting report and refund check.
You don’t have to start the process all over again.

You don’t have to worry about the property or be shocked by its condition when you hire
a Professional Property Manager. Professional Property Managers are dedicated to
selecting quality tenants and keeping your investment in good repair with minimal cost.
They want your real estate investment to be a success not a failure. One last benefit –
your leasing and management fees are usually a tax deduction.

Are there good reasons for managing your own rental property? Are they worth the
risk?

The National Association of Residential Property Managers (We are a member)

NARPM is a professional organization that promotes education, designations, and
networking as a resource to empower its members with knowledge and skill.

A NARPM member honors and subscribes to a Code of Ethics and Standards of
Professionalism.

The result is quality service for you and the community.

Over 1800 Members Nationwide and Internationally
Local Chapters Offer Educational Programs and Guest Speaker Luncheons
Affiliate Vendor Member Programs
Monthly Educational Newsletters
Midyear and Annual Education Events
I am a professional property manager and a member of the National Association of
Residential Property Managers. Visit the NARPM website.

What Distinguishes a Professional Property Manager from other Landlords?

Do you know all of the landlord/tenant laws for your city, state, and federal government?
Do you know rent values, vacancy factors, and time on the market in your area?
Do you have a rental application and consistent screening policies that meet all of your
legal obligations?
Do you take the time to perform thorough move-in/move-out written inspections and
routine property inspections?
Do you personally know reputable painters, electricians, roofers, chimney cleaners,
carpenters, furnace and appliances repairmen who are licensed, affordable, and reliable?
Do you effectively confront and negotiate with the tenant and enforce the terms of your
rental agreement?
Do you have the ability to recover NSF checks, evict tenants?

A Professional Property Manager Does

 

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