During her guest appearance on WCNC-NBC’s Charlotte Today, Nancy Braun, owner of Carolina Property Management, talked about making wise decisions that can help landlords save more money.
Running a successful and profitable rental property involves time and commitment. If you do not have much time to devote to your business, or if your business is growing and you find that you need help to manage everything property, hiring a management company is a sensible move.
For those who are considering investing in rental property, Nancy pointed out the importance of getting a good deal on the mortgage, clarifying that it’s not just about the interest rate. She also mentioned that they have preferred lenders who can potential buyers.
She also reminded landlords of the need for regular maintenance. It isn’t just about avoiding costly repairs but ensuring a comfortable and safe living environment for tenants.
She also highlighted how Carolina Property Management could help landlords. They can help screen tenants. With their resources and experiences, landlords will have higher quality tenants who stay on the property longer, pay rent more reliably, and create less damage.
They can also help landlords avoid legal problems. Every state and municipality have their own laws. In addition, federal law covers a number of areas including tenant screening, safety conditions of the property, terminating leases, handling security deposits, rent collection, and more. Not knowing the laws can lead to costly lawsuits and other legal worries. With their assistance, you can be protected from potential lawsuits and vulnerabilities.
A good management company is worth their weight in gold. If you’re an investment property owner interested in hiring a stellar property management company, there’s only one name you can trust — Carolina Property Management. It is the region’s best choice for property management services. It is known for its unique management system and top-of-the-line technology for property owners and tenants to have a hassle-free experience with professionalism, efficiency, and ease.
For more information, get a free copy of Nancy’s report for 5 Ways to Get Top Dollar for Your Rental Property at NancyHasTheTenants.com.
There is no reason to take on the complicated rental market alone. Get in touch with Nancy Braun today at 704 488 3109.
Eugene Robinson: If you’re thinking about investing in a rental property, you wanna make sure it’s a wise investment. There could be a lot of expenses that come along with it.
Colleen Odegaard: Our next guest is an expert in property management. Welcome Nancy Braun, the owner of Carolina Property Management. Nancy thanks for being here today.
Nancy Braun: Thank you.
Colleen Odegaard: Okay, so someone is thinking about buying an investment property. Do they start by getting a good deal on their mortgage?
Nancy Braun: That’s important. If they’re going to use a mortgage, then of course we have preferred lenders that we recommend. And, there’s more things than just the interest rates.You have to look at the total cost of acquiring the mortgage so, absolutely that carries with the property for a long time.
Eugene Robinson: Are there any write offs or advantages for
Nancy Braun: There are so many write offs and the new taxes have created even more so, I’m not an accountant. But you should speak to your accountant but you can write off the appreciation, interest rate on your mortgage, maybe interest rates you’re paying on your credit cards, your repairs, and 20% of your net income you can write off, depreciation is a big one, losses, improvements that you make to the property, personal property, if you buy a lawn mower for the property, your travel expenses when you’re visiting the property, maybe your home office. Any losses that you had, insurance. So there’s a lot of different things.
Eugene Robinson: A lot of things to go ahead and do it.
Nancy Braun: Yeah. And make sure your accountant who does your taxes so you can take advantage on all of them.
Colleen Odegaard: What types of regular maintenance does the landlord have to take care of?
Nancy Braun: Right, so many times we’ll work with an owner of a property and they just figured, “Hey, I’m done. You guys take care of it.” No, right them and say, “Well, we really should do a termite inspection.” Termites are very prevalent in Charlotte. They don’t realize that they really need to ‘cause you’re not living in a house yourself. So I would recommend that every year. Usually have your furnace and your AC unit checked. Do a maintenance check every season. And painting. You might need to have paint the exterior, the exterior check if there’s any water underneath the house, we ask that the tenants change the filters out. So there is ongoing maintenance.
Eugene Robinson: A landlord and tenant relationship? Should that be a good one? And why does it even matter if it should?
Nancy Braun: Of course if we’re gonna take care of them, they’re gonna take care of us. You know, it’s the golden rule.
Colleen Odegaard: So how do you choose tenants wisely? What advice can you offer there?
Nancy Braun: So, I would strongly urge that you get a property manager because the property managers are trained hopefully on screening your applicants. And you wanna make sure that you’re doing it fairly and in accordance with fair housing rules. And we do our credit check. We do our background criminal check. And we’re also gonna do landlord verification. We’re gonna check their income. We’re gonna make sure that they have a good history behind them that it would be good tenant to be working with going forward.
Eugene Robinson: Do you also check to see if they adhere to different laws setup for landlords?
Nancy Braun: We wanna make sure that we’re gonna be compliant with all the laws, and the laws are complicated. And we also have to make sure that everything is applied uniformly. So if you’re a regular homeowner and you’re just dabbling in property management, and you might just innocently say “Well, do you have any children?” And you decline to rent the family because they have children, you don’t want children messing up your walls. Well, you’re gonna find yourself in a court, with a legal battle because that could be fair housing violation. So you might innocently get yourself in trouble. An emotional support dog is not a pet. So you might say, “No pets allowed!” But that’s not a pet, it’s an emotional support dog, you can’t decline that.
Colleen Odegaard: Got it. Okay. How do you get a good deal on landlord insurance? And what you need to be insured on exactly?
Nancy Braun: So when you own a number of properties, then you can get a commercial policy. And the commercial policy is much, much easier. So if you’re buying and selling, and buying and selling, it’s much easier rather than, you’re just flipping in the different addresses. So it’s much more convenient, less time-consuming for you to get it. And you usually get that bulk rate.
Eugene Robinson: How do you establish a rental rate? I don’t know it has to be a...
Nancy Braun: So we do look at the other homes in the area that are renting, what they’re renting for. So if there are other properties that had been in the market for a long time, and they’re not renting, well that’s our cap. We don’t wanna go that high. But if most of them are renting at a certain range, then we’re gonna recommend that you stay within that range.
Colleen Odegaard: How can Carolina Property Management help people with this process?
Nancy Braun: So, we follow all the rules, and we are, I’m a member of the NARPMⓇ, which is the National Association of Residential Property Managers. And next week, I‘ll be going to some formal training for a week. So we’re always up to date on the current rules, regulations, and the local rules. And so, you want to have a property management company that has other properties, that has experience. I think one of our most valuable attributes is I have an amazing bookkeeper. So we have accounting software that really can make it a lot easier for that homeowner to deal with their taxes, and make sure that we’re putting all the security deposits in a trust account. Cause even as a regular homeowner, you can’t just put that security deposit in a regular bank account. So, we’re also gonna save the money. We rent our properties quicker than you’re gonna rent them. We have thousands of tenants in our database, so we’re gonna get that property rented. So even if you’re trying to save a little bit here and do it yourself, if you get the property rented a month earlier than you would’ve, you’ve probably, it’s a wash on the cost.
Eugene Robinson: It is wash on the cost. Last question. What about technical rate of services for this? Did she talk about?
Colleen Odegaard: It’s a typical rate? Yeah.
Nancy Braun: Well, usually you’re gonna pay an upfront marketing fee. That’s to help acquire the new tenant and get the property marketed. That could be anywhere from a half to a full month’s rent. And then there’s usually a percentage of the rental income as it comes in. And landlords all across charge different percentages. Typical, you know, you could say, 10% might be something that you might see in the industry.
Colleen Odegaard: Well, if you’d like more information, you can get a free copy of Nancy’s special report, “5 Ways to Get Top Dollar On Your Rental Property”. You can find it at NancyHasTheTenants.com. NancyHasTheTenants.com. Or you can call Nancy directly at 704-488-3109. Again 704-488-3109. Nancy Braun, thank you so much. A pleasure always.
Nancy Braun: Thank you.