Investing in properties for single-family rental homes is always a great idea. The rental market is booming, and homeownership is one of the most reliable forms of wealth building. By 2030 the need for single-family rental homes is projected to grow from 16 million to 29 million. It seems like the perfect need-based investment; however, you might not be aware of precisely what your monthly or yearly profits will be. For some investors, when you factor in a mortgage, maintenance, and property taxes, vs. what the market rent is for that property, the profits may only be a few hundred dollars per month. The potentially low return on investment is why many investors purchase multiple homes and hire a Charleston property management company.
How to Choose the Right Properties
There are many factors to consider when purchasing the right rental properties. Low-risk investments such as homes in good school districts and safe neighborhoods will cost more and have higher mortgage costs but are more likely to stay full and attract great tenants. While your yield will be lower, you get the safety and security of the home is likely taken care of by trusted renters.
The higher the risk, the better the reward, though, right? Low-risk homes have their advantages, but if you’re looking to make faster cash, consider lower-priced homes in the less desirable neighborhoods or homes that may need a little investment in a renovation. The mortgages, taxes, and insurance will be less while the market rent will be similar in many neighborhoods which means a better profit for you
Hiring a Charleston property management company is a great way to ensure you are investing in the right properties and getting the best return on your investments. Managing multiple properties is a huge commitment, and if you’re only making a few thousand dollars per year, it may not be worth it to play owner and landlord. Let a professional Charleston property management company help you manage your properties. You can also bank on their knowledge for investment advice!
Working with a Charleston Property Management Company
When you’re ready to partner with Charleston property management, call Scott Properties at 843-790-4929