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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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Charleston Property Management | Buying Your First Rental Property?

Author: Scott Wallace
Categories: Scott Properties

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.

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Charleston Property Management | Finding Rental Properties to Invest In

Author: Scott Wallace
Categories: Scott Properties

Real estate investing in single-family rental homes can be very fun and gives investors the ability to purchase homes that they love, while still making passive income and profits. Charleston property management companies, can help you choose the perfect neighborhoods to invest in, but there are a few other ways you can find the ideal rental property investment.

  1. Search the MLS- Multiple listing service, or MLS, is a database of homes for sale. Zillow and Realtor.com use the MLS to show you homes for sale based on your parameters such as price range, zip code, neighborhood, and time on the market. You can also reach out to a realtor or Charleston property management company to help you with your single-family rental home search.
  2. Turnkey Rental Properties- Turnkey rentals properties are homes that were purchased and renovated by investors, then put back up for sale quickly. This is also called “house flipping.” Contact some of the turnkey property owners in the area you are looking to purchase property, and you can find yourself buying a home that is already move-in ready.
  3. Wholesale Homes- Some investors make a living purchasing off-market investments at low prices at auctions or foreclosures. These homes often need a lot of work, and the investors sell the houses for a small markup. Most wholesale properties will require cash upfront to purchase, and financing may be more difficult for these types of properties. However, if you’re handy and want a renovation project, wholesale options might be an excellent option for you.
  4. Direct Marketing- The perfect rental home for a Charleston property management company start-up might not even be on the market yet. You can target homeowners that are likely to want to sell their home by starting a direct mail campaign. Look for pre-foreclosure lists, properties that were recently put through probate, or free-and-clear properties of elderly citizens that may be close to retirement and looking to downsize and send postcards or letters with offers to buy.

Charleston property management companies are an excellent resource for investors looking for the perfect home to rent. Property managers can help you determine the market rent for the neighborhoods you are interested in and can give you insight into industry trends.

If you are interested in working with Charleston property management teams, 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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