Why Should I Purchase a Rental Property in Durham, NC
Does Durham, NC offer the investment opportunity you are looking for? Learn what to look for in a market to determine if it is a good fit for your strategy and how a property management company can help.
What kind of information should you be looking at to decide if Durham, NC is the right place to invest? Looking for growing city with increasing appreciation is a good start. Research the area to find out:
- House prices vs rental prices
- Characteristics of the area
- Resident job growth
- Occupancy rate and days on market
- Best areas to purchase a property in
If you are looking for increased cash flow, you want to make sure this is possible in the market. If you are looking for appreciation, find out about the home value trends.
About Durham, NC
Part of the Research Triangle Area, Durham is known for its technology companies and is home to prestigious Duke University. Duke University Hospital is a world-renowned research hospital as well as a teaching hospital. Durham offers a wide range of family-friendly entertainment choices that include Durham Bulls games and the Museum of Life and Science.
- Population: 257,232
- Cost of living is below the national average
- Fastest growing city in North Carolina
- 4th largest city in North Carolina
Real estate market in Durham NC
- $279,000 Average home value
- Days on market: 49
- 5.7% appreciation in the past year
- 6.9% predicted appreciation in the coming year
- 38.4% appreciation over the last 10 years
Durham has seen steady appreciation that is expected to continue in the future. This means that the market is growing and may be one to consider investing in the future.
Economy and Industry
- 2% job growth
- $81,289 Median income
Durham has undergone an economic and cultural renaissance. The city has been increasing jobs and building more infrastructure. New restaurants and entertainment venues have been added. Office space geared toward hi-tech entrepreneurs, investors, and startups can be seen around the city. Most jobs types in the area are office workers, professionals, and managers. Durham is right next to RTP (Research Triangle Park), so many people that work there live in Durham. RTP is the largest research park in the United States. Its 7,000 acres house hundreds of companies, including science and technology firms, government agencies, academic institutions, startups and nonprofits.
Durham is growing and offers a steady increase in appreciation for investors. It has a strong economic base fed from RTP.
How to Accurately Set Rent for my Durham, NC Rental Property
How do you know you are asking the right price for your Durham rental property? Are you asking too much and causing an increase on your days on market? Are you charging too little and leaving revenue on the table? As an investor you want to avoid vacancy and lease your rental property quickly.
The market determines the rent rate
There are many factors that can affect what you can rent a home for, but the market ultimately determines the price.
- Demand vs supply - A shortage of rental supply with a high demand can cause rent rates to increase.
- Rental Season - Are you looking for a tenant in the prime rental season? Most people move in the Spring/Summer months. If you must fill a vacancy during the offseason, you may not be able to get as much rent as during the prime season.
- City trends and forecasted growth - Are jobs coming into the area or leaving?
- Location of the property – Is your property in one of the hot areas of the city?
- Number of bedrooms – Price will fluctuate based on the size of the home and if your home is the size people are looking for.
- Curb appeal – Does your home have upgrades people are looking for?
- Do you allow pets? Keep in mind, allowing pets in your rental is a different situation from service animals. Know the difference and make decisions accordingly.
When doing rent comparisons in the area, make sure you are only looking at the homes that are similar in size and type to your rental property. If housing prices in the area are going up, chances are the rental prices are increasing as well.
Rental statistics for Durham NC
- $1,269 average rent for a 2-bedroom house
- $1,580 average rent for a 3-bedroom house
- 43% renter occupied
- 56% owner occupied
You may want to look into the rental market further and find out how long renters tend to stay. Are you looking at having a tenant stay for years or is this an area where people move in and out frequently.
Affordable areas in Durham
- East Durham
- Northgate Park
- Hope Valley
Rent in these areas run about $880-$1000 for a 2 bedroom house, so they are more affordable than the average house in Durham.
Why Should I Hire a Property Management Company in Durham, NC
Buying a rental property is just the first step of being an investor.
What you do after the purchase can make the difference in successfully reaching your goals.
If you hire a Durham property manager, they will find you a quality tenant, handle the day to day operations, and ensure everything complies with the laws and regulations that apply.
Day to day operations
- Getting the property rent ready and up to code
- Marketing the property
- Tenant screening to find a quality resident
- Lease signing and enforcement
- Maintenance and know who is responsible for what
- Rent collection and eviction process if it comes to that
- Ensure the property follows the laws regarding tenant safety
Common maintenance issues
- Gutter cleaning
- Chimney - A large number of homes have fireplaces. You will want to routinely have them cleaned.
Laws and regulations
Laws that apply to your rental are constantly changing, and it is your job as an owner to keep up with them. If you hire a property manager, make sure they are knowledgeable and their procedures and systems protect your investment. A few examples of local laws that apply include:
- License Law
- North Carolina State Fair Housing Act
- Vacation Rental Act
- North Carolina Homestead Laws
- North Carolina Rental Agreement Laws
A good property manager keeps up with changes in laws to ensure you are not violating any local regulations. Mynd property management has in-house legal council that is up to date on all applicable laws and regulations.
Hire a Durham Property Manager
Mynd offers Durham property management services. Our expertise in the Durham rental market can help you make smarter choices when it comes to buying a rental in the area. If you already own a property, contact us for a FREE rental analysis to find out what you can expect to receive in rent. We offer three tier pricing for our management services so you can select the one that fits your specific needs.
If you are looking to scale your rental property portfolio quickly, we can help. We have offices in 19 markets across the country.
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