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Rehabbing Dos and Don’t for Rental Homes

33 Calhoun #122

If you’re an investor who is purchasing fixer-uppers to rehab and then rent your home in Charleston, you’re always on the prowl for new projects. However, when you’re just starting out, getting in over your head is easy. Rehabbing homes can be full of surprises that can break the bank on your budget. Overspending on a project means it will take much longer, often years or decades, to recoup the cost and start making a profit. Investors who understand the dos and don’ts of rehabbing homes can avoid the common pitfalls of house flipping. 

Rehabbing Dos for Rental Homes

It is common to rehab a house or make updates before you rent your home in Charleston. There are certain things investors can always count on being successful for rental home renovations. 

  • Focus on structural damage, building, and housing codes first
  • For Aesthetic Appeal, a fresh coat of paint to all the walls and new carpeting goes a long way
  • Update cabinets to an easy-to-clean, modern, durable style
  • Replace old appliances with modern, energy efficient versions
  • Update bathrooms to be modern and sleek
  • Update flooring, especially stained carpets or damaged laminate

If you have a lot of wiggle room in your budget, rehabbing outside space can also increase curb appeal and command a higher price when you rent your home in Charleston. Adding a deck, fresh landscaping, or a patio, new siding or paint, and more can really help increase your profits.

Rehabbing Don’ts for Rental Homes

There are some projects that aren’t the best ideas when rehabbing rental homes. 

  • Skip installing a swimming pool or hot tub unless you want to pay higher insurance premiums
  • Don’t keep painting over the same old cabinets, tubs, and fixtures, just replace them
  • Tenants do a lot of wear and tear on flooring and carpets so don’t install the cheapest option unless you plan to clean and replace the flooring frequently
  • Don’t compromise quality on projects that affect safety
  • Don’t go over budget and hope raising the rent will make up the costs

Working with property managers can help you determine which rehab projects are helping rentals fly off the market, and which you can skip. Let the experts on property rentals help you make the best choices for your business.

 

If you need property management services in Charleston, give Scott Properties of Charleston a call at 843-790-4929

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Why Renters’ Insurance Must Be Mandatory

10 Orrs

One way to start building wealth and having a stream of residual income is to rent your home in Charleston. Housing is an ever present and growing need in Charleston and all over South Carolina. Property owners and investors have a great chance to increase their profits while also providing a vital service for residents. It’s imperative to protect your investment and keep properties in great condition to get the best return. One of the best ways to protect your investment is requiring tenants to have renters’ insurance.

Why Renters’ Insurance is Important | Property Management in Charleston

When you rent your home in Charleston, it can be nerve-racking to put your trust in tenants to keep your property maintained. Your property insurance will cover major disasters, but won’t cover your tenants’ belongings. Tenants often believe that the investor’s insurance will cover their belongings, but this is a myth that often leaves renters and landlords in a terrible predicament. While renters’ insurance isn’t required by law in South Carolina, it can still be added as mandatory in the lease agreement.

If you rent your home in Charleston, your insurance policy will cover structural damages to property, liability if renters make claims against you, rental income losses, and sometimes the investor’s property such as appliances being provided in the home. 

Tenants with renters’ insurance are less likely to have conflict when damages occur due to fire, flooding, break-in, or other circumstances that could result in a loss of property. Renters’ insurance can also cover damages from pets the renter may have in the home. With renters’ insurance, both the tenant and the investor can be protected. 

Before you let the tenant sign the lease, make sure to get a copy of their renters’ insurance policy. You should also ask for a new copy of the renters’ insurance policy during every lease renewal. Partnering with a property manager can help make the leasing process and all the administrative tasks go smoother. 

If you need property management services in Charleston, give Scott Properties of Charleston a call at 843-790-4929

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When Carpet Cleaning be Scheduled for Rentals? | Property Management Company

461 Truman

One of the things that never ends for property management companies in Charleston SC is the supply of maintenance requests from tenants of rental properties. Keeping homes in good condition is a big job, especially when you get the occasional tenant who has little regard for the property. 

Property management companies in Charleston SC make owning rental property easy because they handle all the day-to-day tenant calls for maintenance and other issues. Not only that, but a property manager can inspect the rental, schedule updates, and make sure the property is made good as new between tenants. 

Carpet Cleaning Requests

Carpets are generally so torn up between tenants that it is best to replace the carpet before showing the rental home to new, potential renters. However, professional carpet cleaning is one of the most frequently asked for maintenance requests. Some property management companies in Charleston SC offer a free, professional carpet cleaning once per year when tenants renew their lease. Sometimes, property managers can schedule carpet cleanings on as needed basis for tenants who request them. 

Sometimes, if a professional carpet cleaning service is not an option, maintenance technicians can use a carpet cleaning machine to complete a DIY cleaning for tenants. It is not uncommon for property management companies in Charleston SC to only schedule professional carpet cleaning when tenants move out if the carpet does not need to be replaced. Some property managers will extend carpet cleaning to encourage tenant retention, but a rental company will work with the property owner to create a plan that works for everyone. 

Fees for carpet cleaning are usually applied to the deposit if carpets are soiled and stained after the tenant moves out. Some property management leases require tenants to have the carpets cleaned as part of the moveout process with an inspection to verify. For best practices, ensure all leases outline procedures around carpet cleaning and other maintenance requests. 

If you are interested in Scott Properties managing your rental properties, call us today at 843-790-4929.

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Steps to Take Before Renting Your Property | Property Management Companies in Charleston SC

Property Management Companies in Charleston SC

Many people want to get into rental property investing to earn extra income while they are retired, spend time on other businesses, or keep increasing their assets. However, sometimes people become landlords by accident through inheritance or needing to move without selling the property they already own. However, having an empty home doesn’t mean it is ready to be put on the market for rent. Property management companies in Charleston SC have been able to assist hundreds of owners in getting their properties rent-ready. 

How to Get Rent Ready

There are many different steps to getting a property ready to rent to tenants:

  • Building Code Inspection:

    A property owner should ensure the rental home is up to code and can pass any inspection that would be needed in order to pass for a sale. Properties should be safe before renters move in and safe, up-to-date properties will require less maintenance in the long run. 

  • Renovations and Updates:

    Addressing any code violations and making renovations that will make the home modern and more up-to-date will not only help you rent faster but also be more competitive at the top of the market rent price.

  • Landscaping:

    Muddy yards, dead trees, and broken sidewalks could turn potential renters away. Investing in professional landscaping and lawn care will make your properties stand out and increase curb appeal which will also allow you to be competitive on the rental price. 

  • Property Management Companies Team:

    Before tenants move in, you should be ready to address all facets of being a landlord including rent collection, lease enforcement, maintenance requests, and more. Property management companies in Charleston SC can be great partners in making sure all of your list is checked off before you take the next step. When you work with a property management team, you also have all the professionals you need under one roof including maintenance! 

Getting your rental property ready for tenants to move can be overwhelming, especially if it’s the first time you are renting to someone. Let a property management company like Scott Properties help you get on the right footing so your investments will have the maximum return. 

Contact Scott properties today at 843-790-4929

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Property Management Companies in Charleston SC | 2022 Property Management Trends

Property Management Companies in Charleston SC

The last few years have been nothing short of a roller coaster for property management companies in Charleston SC and everywhere else around the world. Many companies had to quickly transfer most of the operations to digital formats, including showing rental homes, meeting with investors and vendors, and leasing properties during the COVID-19 Pandemic. However, in 2022 property managers and property owners are now in a place where they know everywhere they need to invest to move forward successfully in their businesses. 

The top trends for property management companies in Charleston SC are the following in 2022:

  • Investing in Legal Services:

    The covid-19 pandemic has opened up investors’ and property managers’ eyes to the need to prioritize legal services. When eviction moratoriums are put into place, rental property owners and managers need to know what recourse they have to protect their investment. Having a legal advisor on staff is a trend every property management company should invest in.

  • Digital Property Management Tools:

    Most professional property management companies in Charleston SC have been using digital tools in their business for some time. The last few years have shown a need for more detailed reporting and communication which has made owner portals more popular than ever. Resident portals are also a super convenient way for tenants to make maintenance requests, pay rent online, make referrals, or send messages to management. Property management companies are also upgrading their websites to include virtual tours and online application processes.

  • Digital Marketing:

    Almost everyone has a smartphone and digital access to so much has created an expectation that that access will always be there. Most property management companies in Charleston SC have found success in keeping properties full by investing in digital marketing strategists. 

These property trends are important to keep informed on when working in property management. If you own rental properties, partnering with a property management company that understands the business trends that will make you successful is vital to getting the best return on your investments. 

If you are ready to partner with a property management company in Charleston, call Scott Properties at 843-790-4929.

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What You Need to Know About Rental Income and Taxes | Property Management Companies in Charleston Sc

property management companies in charleston sc

Taxes are complicated for everyone, but investors with rental homes have a lot to account for that can make tax time confusing. Luckily, Property management companies in Charleston SC can help ease the burden on investors. While these companies cannot file your taxes for you, property managers provide a lot of administrative services to clients that will help your accountant get the best tax outcomes. 

What is Rental Income?

The IRS defines rental income as any payment received for the use or occupation of a property. These payments include:

  • Rent payments
  • Advance payments
  • Nonreturned security deposits
  • Cancellation fees charged to the renter
  • Lease violation fees charged to the renter
  • Services received in lieu of rent

The IRS treats rental income similarly to how they treat independent contractors, sole proprietors, and small business owners. You will pay taxes at the same rate as your income tax bracket; however, investors are able to claim many deductions to reduce the taxes they owe. 

Deductions Rental Property Owners Can Make on Taxes

Some of the deductions that rental property owners can make on their income taxes include:

  • Interest on the mortgage or loans
  • Property taxes
  • Updates, renovations, repairs
  • Utility expenses
  • Homeowners insurance
  • Advertising costs
  • Fees for property management
  • Maintenance fees
  • Cleaning fees
  • Vendor fees
  • HOA or condominium fees
  • Deductions for depreciation

One of the best things rental property companies in Charleston SC can do for their clients is provide monthly financial statements, year-end statements, and other information owners can use to make tax filing smooth and efficient.

When you use property management companies in Charleston SC your rental income is passive which means any loss relating to your rental investments can offset income you have from other sources. This could lower your tax bill. 

Investors need to report their rental income on a Form 1040 or 1040-SR and Schedule E, Supplemental Income and Loss. If you have questions about some of the boxes you will have to fill in on these forms your property manager can help you know where to look to find the answers!

If you are ready to explore a partnership with a top property management company, call Scott Properties of Charleston at 843-202-4274.

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Are Property Management Companies a Scam? | Property Management Companies in Charleston SC

Property management company in North Charleston

Property management companies in Charleston Sc have heard it plenty of times—property management companies are scam, aren’t they? Property owners are sometimes nervous about hiring someone else to manage their properties; after all, being a landlord is easy, right? 

Investors who are buying their first homes for rent and have never worked with property management companies in Charleston SC may not see the benefits that come with hiring a property manager; however, these companies are definitely not scams. While hiring property management may be another investment to make, the return will be worth every penny. 

What Do Property Management Companies in Charleston SC Do?

Landlords must wear lots of hats from maintenance to marketing, leasing, and even legal proceedings. One of the top things a property management company will do for you is take all the weight of these various jobs off your shoulders and hand them off to the experts in those areas. 

One of the top advantages of using property management companies in Charleston SC is being able to sit back, relax, and know professionals are keeping your home maintained at a top standard, rent is profitable, and the tenants living in your home are the most qualified.

Some of the most valuable tasks property management companies in Charleston SC handle for clients include:

  • Rent collection
  • Tenant account management 
  • Reporting of property financial, occupancy, leasing, and maintenance status
  • Marketing of the property 
  • Showing potential renters unoccupied properties
  • Leasing 
  • Inspecting properties
  • Handling tenant communications
  • Handling legal matters
  • Handling maintenance requests
  • Investigating complaints and leasing violations
  • Working with vendors
  • Conducting background and credit checks

These tasks take a lot of time to complete and managing properties is a full-time job. Investors typically already have a full-time job or are looking to enjoy retirement in peace. Property manager partnerships can make an investor’s life easier, your homes will build more equity, and residual income is certain. 

If you are ready to explore a partnership with a top property management company, call Scott Properties of Charleston at 843-202-4274.

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Charleston Property Management Companies | Best Place In South Carolina to Buy Rental Property

Charleston Property Management Companies

If you have checked out the real estate market in South Carolina, you will see that homes are not on the market for long before a family or young entrepreneur has made an offer and is asking for the keys to move in. Investors are clamoring to scoop up single-family homes since the population, especially in the coastal cities, has seen steady growth with no signs of slowing down. Charleston property management companies are fielding phone calls left and right asking questions about the schools, neighborhoods, and amenities ahead of new families moving into town. And while other cities may be experiencing something similar, Charleston has shown itself to be the best place in South Carolina to buy a rental property.

Why Charleston Reigns Supreme for the Rental Market

Charleston has some of the most diverse home options in the state with luxury coastal, beach-front homes, as well as downtown apartments, and single-family suburban homes. The average home value in Charleston is nearly $330,000 which means market rental rates will be high and could turn large profits for investors especially when combined with Charleston property management companies’ services. In fact, rental rates in Charleston have risen by three percent over the last year as incomes and the GDP in Charleston, South Carolina, have increased.

Charleston also has a steadily growing population with more people looking to get away from the big cities and settle down into relaxed, Southern suburban lifestyles. Charleston still embodies the antebellum South and is ranked the number one friendliest city in the United States. Charleston property management companies also get to boast about the premier school system, booming economy, and is home to The Citadel—one of the top military academies in the nation, and The College of Charleston which was voted Most Beautiful College Campus by a renowned travel magazine.

All these factors have led to a population boom as well as college graduates choosing to state and continue renting even after graduation. Many of these recent graduates will be looking to upgrade their lifestyles for more professional living arrangements which is why investors should be purchasing single-family homes to rent now before property prices increase even more.

If you are looking for professional property managers to help you make the most of your rental property investments, call Scott Properties at 843-790-4929.

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Charleston Property Management Companies | Why Charleston is Where You Need to Invest

Charleston Property Management Companies

It is a seller’s market in many cities around the United States and in Charleston the real estate market reflects the same! Houses are going on the market and right back off seemingly overnight with investors sweeping in to turn single-family homes and duplexes into investment rental properties. In fact, the Charleston housing market is expecting to be booming for the next ten years and be in the top ten cities in the country for 2021. This trend is making Charleston property management companies busier than ever with investors needing professional rental management after the close of the sale.

What Does a Seller’s Market Mean for Investors?

For investors, this means they may have to pay more for a property than they normally would because, in a seller’s market, it is the person selling the property that has the most power. Homeowners are getting multiple offers on their properties due to a shortage of homes being sold. However, COVID 19 has caused many people who once owned a home to need a rental property instead which is great for investors. This situation means that market rental rates will increase and offset the increased price you might have to pay for an investment property.

Link With Charleston Property Management Companies

If you are an investor and hearing that you will have to pay more for a property is making you nervous, hear us out. Charleston property management companies are thriving and successful in Charleston because the population boom happening in Charleston is creating a thriving tech industry with high-paying jobs and lots of entrepreneurs and venture capitalists setting down roots along the coast. These renters can afford to pay more for rent and will gladly pay premium prices to be near the ocean and their office. Charleston property management companies can also verify that the median household income of a Charleston family has increased by more than six percent and the GDP has increased by almost 75%. Now is the perfect time to get into Charleston rental property investing.

If you are looking for someone to help manage your rental properties in Charleston, call us today at Scott Properties, 843-790-4929.

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Charleston Property Management Companies | Best Place to Market a Home for Rent

If there is one thing that Charleston property management companies know, it is that the market is constantly changing with new trends, new best practices, and new technology coming available. Twenty years ago the best places to market a home for rent were newspapers and rental magazines. Today, the industry has moved predominately online with many different platforms having rental market success.

Online Marketing for Rental Homes

Charleston property management companies will find the most success in utilizing the online platforms for rental marketing. Craigslist was one of the first platforms to offer online rental marketing outside of the companies such as rent.com. Craigslist is still used today by property managers all over the country to market their single-family homes, apartments, duplexes, and more to the masses.

Another platform that has recently taken off in the last few years has been Facebook Marketplace. With millions of people, especially millennials, using Facebook it only makes sense that the marketplace would include a niche for rental homes. Facebook can filter search preferences by the number of bedrooms, bathrooms, square footage, and location.

Online platforms are also a great way for tenants to see what a rental home will look like before booking a showing. This helps Charleston property management companies manage their time more efficiently and only show homes to people who are genuinely interested.

When posting rental advertisements online, property managers should ensure they always include complete information in each listing that details all the specifications of the home as well as several pictures that highlight the best things about the home. Make sure to include pictures of the living room, master bedroom, bathrooms, and kitchen, as well as the outside of the home and backyard if there is one. Proper staging of the rental home can take photos to the next level and help renters envision themselves living in the home.

If you’re looking for Charleston property management companies to get your properties rented quickly, call. Scott Properties at 843-790-4929.