If you’ve ever considered holding onto your old house when you move instead of selling it and keeping it as a rental property in Charlotte, NC, now may be the time for you to make your move.
Rents in town are going up
In Charlotte, the national rent index is up by 1.9%, and 2.3% locally. With rental prices for a one-bedroom unit averaging a minimum of $1100, you could easily charge enough to cover your mortgage with maybe even a bit leftover. In most cases, the tenant pays their utilities, while you retain responsibility for any repairs. Any additional costs, such as charging for pet rent, will be your decision to assess.
Another decision you’ll be making will be whether to act as property manager directly, or to utilize the services of an agency. Paying for a rental agency relieves you of having to go through the process of screening potential tenants, handling evictions and court filings, contacting repair services when necessary, showing and advertising your property, and calculating monthly expenses/profits. Of course, the cost of these services would be a monthly expenditure prior to your property generating returns for you.
Getting Started
The most common way to enter the rental market is to hold onto the home you’re living in and moving into a new one. Or you might buy a second house or condominium to use. While profits can eventually be made in a market where rental prices are rising, there will be a period of time when you are making repairs you held off on with your old house or on a new property. If you decide to relieve yourself of having to deal with scheduling and contracting for repairmen, make sure you thoroughly research the rental agency beforehand to make sure you’re getting a reputable company. You’ll also want to keep in mind the amount of time you are willing to spend on the management of your property. Utilizing a rental agency will relieve you of many of the day-to-day details of property ownership.
If you do not have a significant savings account you can dig into to purchase a new property of any kind, there are companies, such as Visio Lending, that can assist you with financing the purchase of your new property, especially if it is ready to be occupied. Using a lending company as opposed to a bank can have several advantages. Lending companies offer more flexible terms since they’re not subject to federal compliance and reporting laws the way a bank is. This allows someone who maybe has a slightly lower credit rating to obtain a loan in order to start investing. Some other sources of loans to consider would be savings and loan associations, private lenders, stock brokerages, and credit unions.
Why Charlotte?
There are many reasons to live in North Carolina, any of which could be a valuable feature to present to potential renters: the city has a premier NASCAR racetrack, the Billy Graham Library, and many cultural and shopping options. The general cost of living here is slightly below the national average. There is also an international airport, and Charlotte is considered to be a major banking hub in the South.
Charlotte is a growing city with plentiful job openings featuring an above-average salary range. The current unemployment rate is only 4.9%. There are a plethora of restaurants and breweries and has beaches and mountains within a short drive. Besides, NASCAR, the city has professional basketball, football, and soccer teams, among others. Golf can be played year-round.
Weather-wise, Charlotte has all four seasons. You’ll find the fall colors stunning. You’ll only see snow about once or twice each year. And while the summers are hot, they’re not as hot as states further south, such as Florida or Texas. You’ll also be pleased to know that the air quality in Charlotte is good as well.
A downfall of Charlotte is that there is a slightly higher than average crime rate, although the majority of the city is considered safe.
Investing in a rental property in Charlotte could prove a profitable option for you. You need only take the time to research and explore what options are best for you as far as what kind of property to acquire. With the proper preparation, you can look forward to your property providing you with future income.