Help! My Neighborhood is becoming a Rental Haven! (Raleigh, Fayetteville: for sale, real estate)
Raleigh, Durham, Chapel Hill, CaryThe Triangle Area
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Okay, this is a bit long, but I had to vent about this.
Anybody else run into this? I live in N. Raleigh in the 27614 area. The neighborhood I am in is quite small (65 homes) and most these homes are valued at or below $170K. This price range for some reason seems to be very attractive to investors, and I am afraid my neighborhood is slowly turning into a rental community.
At our last HOA meeting I discovered that out of 65 homes in our community 21 are rented out! Don't get me wrong I don't necessarily have a problem with renters; it is the absent landlords I take issue with. It seems like most the rental houses are not maintained nearly as well as any of the houses where the owner actually lives there. My next door neighbor was a renter, real nice guy, but he recently moved and there has been a crew over there for the past 3 weeks fixing the place up for the next renter. I am glad this particular landlord is taking action to fix the place up because quite frankly, it was starting to look a bit shabby. Unfortunately he seems like the exception rather than the rule.
Just yesterday I noticed that the vacant rental house across the street had a water leak. The sprinkler system line had apparently burst right where it comes out of the side of the house in the middle of the night and water was jetting 15' feet into the air on the side of the house, covering the siding, ac unit, other utility meters, and the lawn in a thick coat of ice. From the looks of it the pipe had burst hours ago. Another neighbor of mine also noticed this and managed to turn the water off to the house at the curb, and I called the management company listed on the sign in the yard to alert them so they could come out and deal with the issue. Of course they weren't open on a Sunday so I had to leave a message, and as far as I can tell they never sent a soul out to fix the leak. I think the actual owner lives in CA and from what I can tell he isn’t getting his money's worth from this property management company.
Anyway, the thing that got me going about this today is that the most recent house for sale in our community sold just last month, and guess what I see in the yard today...you guessed it, a big old "For Rent" sign. So I guess another house here is lost to an investor. On top of that, the guy put those really ugly red "For Rent" signs on every corner leading up to the house like he is directing you to a garage sale or something. What is it about homes in the $150K-$170K range that make them so attractive to investors? And why do they let them get so rundown? I would just hate to see this neighborhood turn into a rental haven with no sense of community.
Tell ya what, NRG...just cuz...lets rent out your house and I'll help find ya a new one! Just kidding. Where in North Raleigh are you? You can pm me if you don't want anyone to know. I'm just curious and I promise...I won't visit!!! Vicki
I have the exact same thing going over here in my s/d in FV. Same price range, too. Not as many rentals that I noticed but I think its just starting. An investor bought 2 homes just in the last 2 weeks and is renting them out. They definitety paid much less than market value for the homes which does lower property values in the n'hood. I think you are right to be alarmed because not only that but as you saw, the investor type owners typically don't take care of the property as well as actual owners living there. The lure to homes in that range allows them to be able to rent it out for the going market rate and make a profit monthly.
NRG,
Unfortunately, that is the top end of the price range where the rent will cover a mortgage, and taxes, and is appealing to landlords.
I hope over time some areas will "gentrify," meaning owner/occupants will resume ownership dominance.
Okay, this is a bit long, but I had to vent about this.
Anybody else run into this? I live in N. Raleigh in the 27614 area. The neighborhood I am in is quite small (65 homes) and most these homes are valued at or below $170K. This price range for some reason seems to be very attractive to investors, and I am afraid my neighborhood is slowly turning into a rental community.
At our last HOA meeting I discovered that out of 65 homes in our community 21 are rented out! Don't get me wrong I don't necessarily have a problem with renters; it is the absent landlords I take issue with. It seems like most the rental houses are not maintained nearly as well as any of the houses where the owner actually lives there. My next door neighbor was a renter, real nice guy, but he recently moved and there has been a crew over there for the past 3 weeks fixing the place up for the next renter. I am glad this particular landlord is taking action to fix the place up because quite frankly, it was starting to look a bit shabby. Unfortunately he seems like the exception rather than the rule.
Just yesterday I noticed that the vacant rental house across the street had a water leak. The sprinkler system line had apparently burst right where it comes out of the side of the house in the middle of the night and water was jetting 15' feet into the air on the side of the house, covering the siding, ac unit, other utility meters, and the lawn in a thick coat of ice. From the looks of it the pipe had burst hours ago. Another neighbor of mine also noticed this and managed to turn the water off to the house at the curb, and I called the management company listed on the sign in the yard to alert them so they could come out and deal with the issue. Of course they weren't open on a Sunday so I had to leave a message, and as far as I can tell they never sent a soul out to fix the leak. I think the actual owner lives in CA and from what I can tell he isn’t getting his money's worth from this property management company.
Anyway, the thing that got me going about this today is that the most recent house for sale in our community sold just last month, and guess what I see in the yard today...you guessed it, a big old "For Rent" sign. So I guess another house here is lost to an investor. On top of that, the guy put those really ugly red "For Rent" signs on every corner leading up to the house like he is directing you to a garage sale or something. What is it about homes in the $150K-$170K range that make them so attractive to investors? And why do they let them get so rundown? I would just hate to see this neighborhood turn into a rental haven with no sense of community.
My sympathies. We just had another one turn rental on my street....and so far have seen garbage out in the drive for two weeks (old washer/dryers, childrens toys)......Nothing againest renters per se...but darn it all.....why do most just not care?
NRG,
Unfortunately, that is the top end of the price range where the rent will cover a mortgage, and taxes, and is appealing to landlords.
I hope over time some areas will "gentrify," meaning owner/occupants will resume ownership dominance.
Yes me too Mike, met too. Actually, when my wife and I moved in last year we received a standing ovation from the residents at our first HOA meeting as they were thrilled to see an actual owner move in, apparently the previous 4 homes sold before us all went to investors. It does seem like the range we are in ($140K-$170K) is that rental "sweet-spot".
The phenomenon that you describe is city-wide in Fayetteville due to the military. Some renters are great neighbors but unfortunately many are not and their homes are easy to detect. The market is currently booming but I fear what happens if (when?) the military is downsized.
I suggest that if there is rental property causing on-going problems that you call the owner and let him/her know that it appears they are unaware of the issues and the impact on their property.
Repeat as needed.
On top of that, the guy put those really ugly red "For Rent" signs on every corner leading up to the house like he is directing you to a garage sale or something.
fyi on those signs, NRG - are you inside the city limits? If so, this guy is breaking the Raleigh sign ordinance (which is being enforced more heavily than one might think.) Last I heard, the going rate (fine) per sign was about $100. I'm not sure how or to whom to report it, though, or if it's a big enough deal to you to bother.
The ordinance makes it harder for those of us doing open houses and advertising new home communities, too, but that's the price you pay not to have every street corner littered with those little paper directional signs.
Now, if you're in Wake County, but not in Raleigh, all bets are off.
The phenomenon that you describe is city-wide in Fayetteville due to the military. Some renters are great neighbors but unfortunately many are not and their homes are easy to detect. The market is currently booming but I fear what happens if (when?) the military is downsized.
That's true, although I am not worried about the military downsizing Ft. Bragg. As a matter of fact, Bragg is absorbing some of the post closings, and will actually be growing by about 11,000 troops over the next few years. Makes me glad I own one of those rentals!
My dad is retired Army, and they have been in Fayetteville for 20 years. My mom owns a real estate firm/property management company, which is how we came to own property there. We're planning on picking up another one soon, and fortunately, I trust my management company!
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