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.

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.

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.

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.

Charleston Property Management | Hardwood vs. Carpet in Rentals

One of the things a Charleston property management company should consider when upgrading a rental home is whether to change the flooring. This choice usually comes into play when tenants move out of a home and have left the carpeting stained and ripped, or the hardwood floors scuffed and scratched. Check out the perks of hardwood and carpet so you can decide which is best for your rental home needs.

Pros and Cons of Hardwood Flooring

Hardwood flooring are easy to clean and maintain. Hardwood floors tend to last longer than carpet and with proper maintenance can even last the lifetime of the home, unlike carpet. Hardwood also enhances the overall look of your home which can help the property rent or sell faster. Charleston property management companies will save money on carpet cleaning services between tenants if they choose hardwood flooring instead.
The negative aspects of hardwood flooring include the initial cost of installation and the cost to restore if tenants damage the flooring. Moving furniture, spills that aren’t cleaned up, and moisture can ruin hardwood. Wood floors are also noisier than carpet and don’t absorb any of the sound from footsteps. Hardwood floors aren’t as warm as carpeting either and can be shocking on cold morning with bare feet.

Pros and Cons of Carpeting

Families tend to love carpeting when they have small children because carpeting is soft, plush, and doesn’t hurt as much when you fall. Carpeting is also warm and inviting and can make a room feel comfortable and inviting whereas hardwood can look stuffy and rigid. Carpeting also costs far less than hardwood to install.

The negatives associated with carpeting include the durability and longevity. Families with children or pets will wear the carpet down quickly forcing Charleston property management companies to replace it more often. This expense can add up quickly. To properly maintain the carpets in rental homes professional carpet cleaning needs to be completed at least once per year and this cost often will fall on the property manager as well.

There are several other styles of flooring that also make great options for rental homes including laminate and tile. However, carpeting and hardwood are the two best options for single-family rental homes in most cases.  If you’re looking for a property management company that understands how to increase your home value and potential, call Scott Properties at 843-972-9008.