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Being a property manager is a fun, rewarding job that is also tough, grueling, and fast-paced. You need to be organized, outgoing, dedicated, intelligent, and have excellent customer service to succeed in property management, but even the most talented property manager will make a couple of mistakes along the way, especially when they are first starting out in the rental industry. If you’re new to the business, check out these top mistakes that beginner property managers might make with their rentals.

1. Overestimating Demand- There is nothing worse than acquiring a rental property and then having it sit vacant for any amount of time, but if you overestimate the rental demand in a neighborhood before you purchase a home, you might find yourself losing money.
2. Not Budgeting Properly- Underestimating what a property’s upkeep will cost is one of the greatest mistakes you can make because you might find your company spending more than what the client was prepared to pay for maintenance.
3. Overpricing Rent- Beginner property managers often make the mistake of charging too much for rent. You should always do your research and find out what the market rent, or average rent, for a similar home is in that neighborhood. Don’t start out charging the most you possibly can for rent as this will drive tenants away who can find something similar for less and from someone with more experience in property management.
4. Not Evicting Soon Enough- One thing a property manager must excel at is confrontation with tenants. Confrontation doesn’t mean fighting, but you need to enforce the lease. If tenants are late on rent or have violations, make sure to document so that you can start the eviction process as soon as you are legally able.

Being a property manager is tough, and if you find yourself making mistakes and needing to call in a professional partner, you shouldn’t feel ashamed. We are here to help you make the most out of your investment and get the best return possible.

When you’re ready to hire a trusted property manager in Charleston, call Scott Properties at 843-352-8341.

If you’ve ever seen the word “turnkey” on a property listing, you may have wondered if the phrase was a buzzword used for marketing, or if it had some other meaning you should know. Turnkey has a meaning, although the exact definition is a bit subjective. A property manager who is just starting in real estate investing might be interested in this type of property because the homes are generally considered to be move-in ready at the time of purchase. This makes them easy to show and rent; however, there are several other pros and cons of turnkey homes that a property manager needs to be aware of before purchasing.

Pros of Turnkey Properties

• Less Vacant Time-Turnkey single-family rental homes usually have lower vacancy rates because they are move-in ready and easier to get off the market quickly. These properties can start generating a cash flow almost immediately and are sometimes already being used as rental properties with tenants already living there.
• Diversify Your Portfolio- Turnkey properties are a great way to diversify your real estate investment portfolio because they show you have investments in different areas, cities, and can mitigate against the local downturn in specific neighborhoods.
• Easy Investment- Almost every property manager will love turnkey properties because they are nearly entirely hands-off and provide a great passive income. Most of the time, inspections, title procurement, appraisals, and other vital processes are already taken care of when you purchase move-in ready rental homes.

Cons of Turnkey Properties

• Less Customization- Being move-in ready means you won’t be remodeling or renovating the home into the rental home of your dreams. Less customization means less work but also less of your personality that gets to shine.
• Higher Price- Turnkey homes need little investing and are usually on the higher end of the market value for properties in the neighborhood. This will mean an independent property manager will need to make a higher initial investment.

Turnkey properties are the perfect investment because you can buy a move-in ready rental and leave the business side of things to a property manager in Charleston who can help you get the most return on that high initial investment. Make sure to screen your tenants so your investment can stay valuable.

If you’re ready to hire a Charleston property manager, call Scott Properties at 843-352-8341.

Rental properties are an excellent investment because families will always need somewhere to live, and many people will rent at least once in their life before purchasing their first home. Investing in single-family rentals is a great way to earn passive income in retirement or as a side job to have extra money rolling in. Many investors will hire a Charleston property management company to help them get the most out of their rentals; however, there are a few things you need to do first to get ready to purchase your first rental property.

1. Make the Commitment- Investing in rental properties isn’t for everyone, and you need to decide if you have the time to step into the world of real estate. Even if you hire a Charleston property management company, you will still need to be an active part of the business. You’ll also need capital to start up with, a business plan, and a real estate investment trust.
2. Build a Team- You’ll need a great team to help you with your real estate investment, including working with a local real estate agent, attorney, insurance agent, appraiser, and home inspector.
3. Decide Where to Buy- One thing that Charleston property management teams can help you with is finding the right neighborhood to purchase a home in. There are a lot of factors to consider in choosing the best area for single-family rental homes, including price, demographics, economics, and more.
4. Secure Financing- Before you can purchase a rental home, you need to secure financing. Lenders are much more strict on the requirements for an investment home mortgage as opposed to a primary residence. Make sure to secure funding before you start shopping or making offers.
5. Choose a Property Manager- Once you’ve decided on the investment home and the offer has been accepted, you should start searching for the perfect Charleston property management company. A property manager can help you understand the business cashflow and help you get the best return on your investment.

Investing in single-family rentals in Charleston can be the key to a happy and financially secure future. Hiring a property manager can increase that security by helping your business get off the ground running.

When you’re ready to talk about Charleston property management, call Scott Properties at 843-352-8341.