Charlotte is a very hot market right now. Hedge funds have bought thousands of homes over the last couple of years because they believe homes here are undervalued 20 to 30 percent. Investors have caught on, and now there is a lot of interest in buying in the Charlotte area.
Often, new investors will call us when they are getting ready to close on a home because they want to rent it out and have Alarca Property Management manage the property. We are happy to do it, of course, but we encourage folks to call us ahead of time. Before you even start looking at properties, get in touch with us so we can provide valuable information on the area you are thinking about buying in. We can also help you understand how much rent to expect, what kind of turnover to expect and those kinds of things.
A real estate sales agent can help you negotiate a deal, but a property manager will help you understand how the home will perform on the rental market. For example a sales agent may tell you the home you are considering will rent for $1,000 per month, but after our analysis we find that nothing in the area has rented for over $900 per month. It’s good to know how much rental income you can count on before you buy the property.
A property manager can also help in terms of repairs or upgrades. We can take a look at the property before you buy it and give you an idea of how much renovations will cost to make the home rent ready. Sales agents will suggest retail pricing, but we can do it significantly cheaper with our volume pricing.
When you have a property manager advising you from the beginning, it creates a buy-in and accountability with your purchase decision. If I tell you the property will rent for $900, I have to be prepared to list that home for $900 and find a great tenant willing to pay that rent.
Property managers can point you towards good neighborhoods and away from bad neighborhoods. Some places look great on paper but the rental market is a lot different from the sales market. You want to buy in a place that attracts renters.
We can certainly help you on upgrades. We once knew a client who overpaid on a foreclosure and then went a little over the top on renovations. He installed stainless steel appliances but then had to worry about those appliances getting stolen when the property was vacant. It sat on the market for a long time, and he didn’t get the return he was hoping for. We’ll tell you what renovations are appropriate and what renters will care about.
As always, we welcome your questions on investment properties and how to buy them. Please contact us at Alarca Property Management.