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Rental Property Management Charleston | Should Landlords Allow Subletting?

Author: MediaBeast
Categories: Scott Properties
Rental Property Management Charleston

One of the situations that every kind of rental property management Charleston offers will face eventually is whether or not to allow their tenants to sublet their homes. Subletting is a situation in which the leaser is not able to fulfill the terms of the lease and needs to move out early. Rather than breaking the lease, subletting allows the tenant to find someone else to take over the remainder of the lease to avoid penalties.

Rental property management Charleston-based owners know that the job market can fluctuate, and sometimes families may need to move earlier than expected. Sometimes when people get married, they will want to move before the end of their lease. You might also have tenants who lose their jobs and can no longer afford the home, or they simply just want to live somewhere else. Having terms in your lease regarding subletting is important for metropolitan areas, especially. Here’s what a property manager or landlord needs to know before deciding if they will allow subletting:

Pros of Subletting

One of the most significant advantages to rental property management Charleston allows subletting is monetary. If you don’t allow subletting and the tenant leaves anyway, your company might end up having to track down and then fight that tenant in court for rent owed and legal fees. When you allow subletting, you’re more likely to have the rent keep coming in.

Another great reason to allow subletting is that your vacancy rates will improve. Subletters are likely to sign a lease renewal in their name when the lease they are finishing is up. You won’t have to worry about transitioning the home between tenants either or do move out inspections.

If your rental property management Charleston company decides to allow subletting, make sure to screen subletters the same way you qualify tenants and quire property manager approval before the lease is signed or someone new moves in.

Cons of Subletting

The only con to subletting, if you screen subletters like you do tenants, is that two people are on the hook for the lease. While this may seem beneficial—the original leaser is responsible for paying if the subletter fails to pay; it also means that your rental property management Charleston company will have to evict two people.

If subletting and tenants aren’t something you want to deal with as an owner, contact Scott Properties of Charleston to hire a property manager who can handle any tenant situation. Our number is 843-790-0148.

 

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Property Manager | How to Transition A Home Between Tenants

Author: MediaBeast
Categories: Scott Properties
Property Management

The nature of the single-family rental business is that it is temporary, with doors always revolving. Most families don’t rent the same home for decades. The average resident of a single-family rental home only rents for three years before moving on to something or somewhere else. Stays of up to six years are also frequent; however, chances are, a property manager will rent out the same home multiple times during their career. Transitioning a home between tenants is a big, but necessary job, and there are a few steps you can take to make the transition go smoothly.

  1. Notice of Move Out- Most leases require a tenant to notify the property manager 60-90 days before the lease is up that they want to vacate the home and not renew their lease. Tenants should always be required to submit their notice in writing.
  2. Move Out Inspection- Make an appointment for a moveout inspection and turnover of the keys with your tenants. Move Out Inspections will be a determining factor in how much of the deposit the tenants will get back. Make sure the tenant understands any damages or fees they are responsible for paying as a result of the inspection. If the tenant being present is not possible, the property manager should ensure that the inspection is well documented with details and photos.
  3. Complete Maintenance- Some of the maintenance that typically needs to be completed in between tenants includes painting, repairs of appliances, changing the locks, replacing batteries in smoke detectors and carbon monoxide monitors, carpet shampooing, and professional cleaning. When the new tenants move in, they will expect to be walking into a move-in-ready home that is clean with everything in good working order. Make sure to take pictures for the home file, so there is documentation of what the house looked like at the move-in time.

Once maintenance is completed on the home, a property manager is free to start showing the house. Marketing and scheduling showings can be done while the property is being renovated; however, the real fun begins when the home is brand-new looking and ready to go on the rental market officially.

If you’re looking for a property manager that can easily transition your property between tenants, call Scott Properties at 843-790-0148.

 

 

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Charleston Property Management | Running a Rental Business During COVID-19

Author: MediaBeast
Categories: Scott Properties
Property management in charleston

One of the best things about being part of a Charleston property management team is showing homes and meeting new people. Seeing the delight and excitement on a family’s face when they find their dream home to rent is one of the best reasons to become a property manager. However, with stay-at-home orders in effect and people needing to social distance for their health and safety, the job is changing. Today Charleston property management companies need to take their businesses virtual, and we’re here to give you some tips and tricks to do so.

Online Portals-Use online portal for mass communications with your tenants, online rent payments, the ability to submit maintenance requests, and even have conversations with tenants and share documents such as lease renewals! You don’t need tenants to come into the office to sign a new lease document; they can sign and upload it through tenant portals. Charleston property management companies can use online portals to ensure proper social distancing and provide updates quickly to help tenants navigate the uncertain times. You can also have portals accessible to owners only, which will help streamline all your processes, even when COVID-19 is no longer a worry.

Text Messaging-Tenants, property managers, vendors, and owners can all communicate through text messaging and encourages social distancing as well. Giving your tenants fast ways of reaching you will stop them from coming to the office for non-emergency issues. There are text messaging apps available so that you can send out messages to many groups at once and never have to share your personal cell information.

Running a rental business during COVID-19 is a new territory for veteran and new Charleston property management companies and managers. Still, there are many ways to modernize your business and be successful in using online tools.

If you’re an owner interested in working with a modern, Charleston property management company, call Scott Properties at 843-790-4929.

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Charleston Property Management | Corona Virus and Single Family Rentals

Author: MediaBeast
Categories: charleston property management,Scott Properties
Charleston International Airport - Columbia

Charleston Property Management companies are currently dealing with a problem they’ve never had before—most of their tenants might be struggling to pay rent for April, May, and maybe even June. Most property managers and landlords than ever before are going to be faced with tenants calling and emailing about rent arrangements. However, owners still have mortgages and property taxes to be paid, and letting all of their tenants slide on the rent, may not be in their best interest. Luckily, the federal government has come up with the CARES Act to provide relief to those impacted by COVID-19. Charleston property management companies should be aware of this act and help tenants understand the resources they have available to assist in paying rent.

CARES Act

The CARES Act, Coronavirus Aid, Relief and Economic Security Act, was recently passed and gives everyone who files for unemployment due to COVID-19 will receive an additional $600 per week in benefits beyond what they would usually receive. Even freelancers and independent contractors who would typically not qualify for unemployment benefits will be able to file for the first time.

Stimulus checks are also being sent to millions of Americans, starting at $1,200 per adult and $500 per child. These payments will vary depending on income level; however, Americans affected by the Coronavirus are going to be given generous aid by the government, beyond what they would get under normal circumstances of being laid off. Some people will be earning more on unemployment and collecting the stimulus and CARES Act benefits than they would by working under normal conditions.

Also, there may be many different local programs available for people to help delay utility payments and other bills. If a Charleston Property Management company encounters many of their single-family home renters having trouble paying the rent, they should remind the renter of the resources and stimulus available and do their best to make mutually beneficial arrangements.

If you’re looking for a Charleston Property Management Company to help guide you through renting your property during the pandemic, call Scott Properties at 843-790-4929.

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Rental Property Management Charleston | Managing a Rental from Afar

Author: MediaBeast
Categories: Scott Properties

Companies that specialize in rental property management in Charleston are not always based in the neighborhood that their properties are located in. While having an on-the-ground, face-to-face relationship with tenants is essential, many times, rental property management Charleston residents don’t see it happening at a distance. You might assume it’s difficult to manage rental properties from afar, but we have a few tips that can help you stay organized, even when you can’t be on site.

  1. Maintenance Team- You don’t want to scramble for a plumber or electrician when there is a significant maintenance issue at a home that you are managing. Having contracts and relationships already established with service vendors and a maintenance team can increase your tenant relations and keep your costs and expenses low.
  2. Hire A Property Manager- Hiring a part-time manager from trusted rental property management in Charleston is a great way to save time and travel costs for necessary in-person tasks such as inspections, showing the home, and more. Make sure the person you hire can work with you efficiently and has the same vision for the property you have or better! Sometimes the right property manager can even make your dream bigger for your investment property.
  3. Use a Web Portal for Tenants- There are many different software programs that rental property management companies use to create web portals for tenants and clients. This makes communication easy and helps the rental property management in Charleston company stay organized and up to date on all relevant information. Property managers can even send emails through the programs and reminders for when rent is due.

One of the best ways to ensure your single-family rental homes are managed effectively from a distance is to hire an employee from rental property management in Charleston companies to work with you on developing your home further and increasing its rent value.

If you’re interested in learning more about what it takes to manage a property effectively, call Scott Properties at 843-352-8341.

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Property Manager | Common Mistakes Property Managers Make

Author: MediaBeast
Categories: Scott Properties

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.

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Property Manager | Pros and Cons of Turnkey Property Investments

Author: MediaBeast
Categories: Scott Properties

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.

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Rental Property Management in Charleston | How Important Are A Tenants Finances?

Author: MediaBeast
Categories: Scott Properties

Rental Property Management in Charleston | How Important Are A Tenants Finances?

When screening tenants, rental property management in Charleston takes finances into consideration as one of the main qualifications for rent; however, some tenants are often frustrated with rules on their finances because it often keeps them from renting their dream home. Even if a tenant has a shining star next to all the other qualifications, rental property management in Charleston should not overlook the tenant’s ability to pay the rent.

How Much Should the Income to Rent Ratio Be For Rental Property In Charleston?

The standard qualification for income to rent ratio is that tenants should have a household gross income equal to three times the amount of rent in order to sufficiently afford the rent. Property management companies in places where the cost of living is lower can sometimes slide down to an expectation of 2.5 times the amount of rent; however rental property management in Charleston often recommends that gross income should be 3.5 times the rent because the cost of living is higher. If tenants get behind on their other bills or utilities the chance that they will pay their rent late is much greater. Property managers need to ensure that tenants can afford to live in the home, not just have the ability to pay on paper.

What is Considered Income?

If a potential tenant doesn’t meet the income requirements for a home based on their employment alone, remind them of the other possible sources of income they may be getting that they can include on their application including:

  • Grants or Student Aid
  • Scholarships
  • Income of other adults in the home
  • Interest on accounts
  • Disability payments
  • Child support payments
  • Social security payments
  • Dividends from stocks
  • Unemployment compensation
  • Cash payments

Although it is not recommended, some landlords will bypass income qualifications for tenants that offer to pay the term of their lease in cash upfront as this is guaranteed payment. When this happens, you run the risk of tenants that wouldn’t usually qualify and could cause other problems later when it is lease renewal time.

If you want to work with a property manager who understands tenant screening, call Scott Properties at 843-972-9008.

 

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Property Manager | What You Should Never Mention on Property Tours

Author: MediaBeast
Categories: Scott Properties

Property Manager | What You Should Never Mention on Property Tours

One of the most important jobs a property manager has is to ensure that homes are not vacant for long. When a tenant moves out of a home and another tenant is not lined up to move in, you might find yourself spending days on end meeting potential renters and giving them tours of the home. When giving prospects the rundown on a home, you want to sell them on the very best features while also making sure that the home will be the right fit. While you should never lie to a tenant, there are a few things you should avoid mentioning when giving a property tour.

Here’s what a Property Manager should avoid mentioning while giving a tour

  1. Previous Tenants- Prospective renters may ask you about the previous tenants but a property manager should remember to keep private information to themselves. You shouldn’t discuss with tenants the race, nationality, age, job, or other identifying information about past tenants. In the same regard you should avoid speaking ill about past tenants as a good business practice and moral decency.
  2. Pest Control Problems- The last thing you want to do is announce how the last tenant had a cockroach problem that pest control has mitigated. Prospective tenants will be unlikely to believe the problem is gone and worry that the home is not clean. Unless there is a current pest control issue that needs to be addressed there is no need to delve into the past. Instead, let tenants know about your pest control policy and any regular pest control maintenance such as preventative spraying that is provided by the property manager.
  3. Don’t Make Assumptions- Never assume that the people touring the property can’t afford it, won’t like it, or aren’t going to qualify for the home. You also shouldn’t assume that all the great aspects of the neighborhood will be favored by the prospective tenants so keeping statements general and trying to leave out opinion is also a great rule of thumb.

Property managers and leasing professionals should have great salesmanship skills and be able to market your property the right way to ensure low vacancy and quality tenants. Many landlords and leasers make the mistake of saying the wrong thing during showings that send potential tenants running the other direction. Don’t let the same thing happen to you!

If you are ready to work with a Charleston property manager that knows how to market your home effectively, call Scott Properties at 843-972-9008.

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Property Manager | How to Determine Price of Rent

Author: MediaBeast
Categories: Scott Properties

Property Manager | How to Determine Price of Rent

You’ve made the jump into property investment and purchased a single-family home to rent out—Great! Maybe you’ve even completed the remodel and the unit is move-in ready. Before you start marketing your home for rent the most important thing you need to determine is what you are going to charge for rent.

Here are the things a property manager needs to take into consideration when assigning a rent value to a home:

  1. Home Value- The rule of thumb is to charge between .8 and 1.1% of your home’s value in monthly rent. A home that has a market value of $250,000 can be expected to charge anywhere from $2,000-$2,750 for rent each month.
  2. Market Rent- Just because the formula for figuring out rent determines you can charge thousands per month doesn’t mean you should. A great property manager will survey the area and find out what others are charging for similar single-family homes in the area. Keep rental prices comparable to remain competitive in the neighborhood.
  3. Repair Costs- If you had to invest money into the home to get it rent-ready you should take these costs into consideration when determining rent value.
  4. Upgrades- Is the property full of modern amenities, appliances, brand new carpeting, freshly painted walls, a new roof, landscaping or other upgrades? When determining the rent amount, if you’ve made upgrades to the home you can charge higher end of the rent range.
  5. Rent Control- Are there laws and ordinances in the neighborhood that determine maximums that can be charged for rent or deposits? Many communities put a cap on rent and no matter how luxurious your home is, you might not be able to charge what you would like for the property.

Once you determine the rent value you want to charge your next step is marketing the home and getting tenants to apply. A property manager in Charleston is the perfect solution for every step of your rental property needs.

If you’re ready to hire a property manager, call Scott Properties at 843-972-9008.

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