If you are thinking about buying rental property on the Outer Banks now is the optimal time to purchase. Buying now and closing before May will give you the best opportunity to earn 100% of this years rental income while only paying for 75% of the years expenses!! Better yet, if the house you are buying has weeks already booked for the summer you will get check at closing for those monies already collected by the management company. That's right you can close on a house and get a check handed to you for the pro-rated amount of rental income already booked for 2011. How does that work you ask??
Many guests begin looking and pre-booking their vacations for the following year while they are on vacation. They are required by most rental companies to send in a small deposit to hold that week. Management companies then send out the rental agreements in January/February to all the renters who have pre-booked weeks for the upcoming rental season. A deposit of 50% of the rental amount at the time of the rental contact being signed is required. The second half is due within 30 days before their vacation date. You as the property owner get a % of the deposit money when the renters send in the new rental contract in January/February and the rest comes to you after the renters satisfy their weekly stay. This insures that the property will continually be receiving income throughout much of the year, NOT just in the summer. If a property is sold during the rental year the new buyer receives all of the pro-rated rents the seller collected for all weeks that have not been full filled by the renter.
To learn more about buying real estate on the Outer Banks contact Matt Huband at obxrealtors@gmail.com or 252-255-0221
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