Strike while Charlotte’s rental market is still hot

For those unwilling to take the big plunge and sell their house at current market value, another great option is the rental market.

Charlotte has always had a strong demand for rental properties adjacent to center city, with banking transplants, doctors and athletes, but now more than ever rental properties are in demand.

Renting your home, rather than selling it right now, is a great idea. It gives the seller the freedom to move while still paying off their mortgage and, in the meantime, waiting for market conditions to improve and hopefully actually making money on their house one day.

It has also become a source of income for many residential real estate buyers’ agents. Most firms offer compensation for bringing a ready-and-able tenant. The compensation can range anywhere from 10 percent of the first month’s rent to half of the first month’s rent to a set fee.

Not like the good ol’ days, but at least it’s something, right?

Self-management or hiring out property management for your home are both options to explore before putting out the “for rent” sign. Self-management means what the name implies: The homeowner is responsible for all landlord duties, including rent collection and general maintenance.

North Carolina real estate law dictates that anyone holding a written lease should have a real estate license, but many do not. Legally speaking, it’s a good idea as you’ll be holding a deposit and signing a lease.

Not surprisingly, leases are very important documents. Despite the fact that verbal contracts are validated in North Carolina, they are not legally binding. So if you want to be able to enforce payment from a tenant, it’s a good idea to have it in writing.

Hiring a property management firm is a great alternative for those who don’t mind paying a fee for a real estate agent to market and manage their property.

There are a few well-known property management firms in Charlotte: Meca, T.R. Lawing, and Brown & Glenn. They will market your home on the multiple listing service (MLS) or their company website or both.

While residential firms have tightened the belt over the past few years, these firms have flourished as the rental market in Charlotte is stronger than ever.

Updated, two-bedroom condominiums in neighborhoods like Eastover, Myers Park, Dilworth and uptown are all listing around $1,700 a month and up.

Single-family homes in these same neighborhoods are commanding from $1,900 (1,700 square feet) to $3,500 (4,000 square feet). Keep in mind, these prices are for homes that are updated and in good condition.

These numbers may seem steep to some, but these units are going off the market like hot Krispy Kremes used to. Because of this, property owners are not desperate, and they can command a higher monthly rate.

Unlike the sales market, these landlords have the upper hand due to limited supply in a high-demand environment. So if you are looking to sign a lease anywhere near the uptown corridor this year, watch for the “Hot Now” signs to light up and grab them while you can.

Reule is a Realtor and broker at Cottingham Chalk Hayes. She can be reached at [email protected] or cchrealtors.com.