Let’s take a look at the top 10 things you should consider when searching for the right rental property.

1. Neighborhood. The quality of the neighborhood in which you buy will influence both the types of tenants you attract and your vacancy rate. For example, if you buy in a neighborhood near a university, the chances are that your pool of potential tenants will be mainly made up of students and that you will face vacancies on a fairly regular basis during summer. If you purchase a home in a neighborhood of three to five bedrooms, you will most likely attract families. 

2. Property Taxes. Property taxes are higher on a rental property than a primary residence. High property taxes may not always be a bad thing if the neighborhood is an excellent place for long-term tenants, but the two do not necessarily go hand in hand. Be sure that you choose a home that can be rented to make profit and cover property taxes.

3. Schools. If you’re dealing with family-sized accommodations, you need to consider the quality of local educational facilities. If a property is good, but the nearby schools are poor or non-existent, it can affect the value of your investment. Although you will be mostly concerned about the monthly cash flow, the overall value of your rental property comes in to play when you eventually sell it.

4. Crime. No one wants to live next door to a hot spot for criminal activity. Go to the police or the public library for accurate crime statistics for various neighborhoods, rather than asking the owner who is hoping to sell the property to you. Items to look for are vandalism rates, serious crimes, petty crimes and recent activity (either up or down). You might also want to ask about the frequency of a police presence in your neighborhood.

5. Job Market. Locations with growing employment opportunities tend to attract more people – meaning more tenants. To find out how a particular area rates, go directly to the U.S. Bureau of Labor Statistics online or to your local library. If you notice an announcement for a new major company moving to the area, you can rest assured that workers will flock to the area. 

6. Amenities. Check the potential neighborhood for current or projected parks, malls, gyms, movie theaters, public transport hubs and all the other perks that attract renters. Cities, and sometimes even particular areas of a city, have loads of promotional literature that will give you an idea of where the best blend of public amenities and private property can be found.

7. Future Development. The county planning department will have information on all the new development that is coming or has been zoned into the area. If there are many new apartment buildings, business parks or malls going up, it is probably a good growth area. However, watch out for new developments that could hurt the price of surrounding properties by, for example, causing the loss of an activity-friendly green space. Additional new housing could also provide competition for your property.

8. Number of Listings and Vacancies. If there is an unusually high number of listings for one particular neighborhood, this can either signal a seasonal cycle or a neighborhood that has “gone bad.” Make sure you figure out which it is before you buy in. You should also determine whether you can cover for any seasonal fluctuations in vacancies. Similar to listings, the vacancy rates will give you an idea of how successful you will be at attracting tenants. High vacancy rates force landlords to lower rents in order to attract tenants. Low vacancy rates allow landlords to raise rental rates.

9. Rents.  Rental income will be the bread-and-butter of your rental property, so you need to know what the average rent in the area is. If charging the average rent is not going to be enough to cover your mortgage payment, taxes and other expenses, then you have to keep looking. Be sure to research enough to gauge where the area will be headed in the next five years.

10. Natural Disasters. Insurance is another expense that you will have to subtract from your returns, so it is good to know just how much you will need to carry. If an area is prone to hurricanes or flooding, paying for the extra coverage can eat away at your rental income.

Side notes:  If you are set on a particular neighborhood, try to visit it at different times on different days of the week to see your future neighbors in action. Condos are considered low maintenance because the condo association is there to help with many of the external repairs, leaving you to worry only about the interior. Because condos are not truly independent living units, however, they tend to garner lower rents and tend to appreciate more slowly than single-family homes. Generally single-family homes tend to attract longer-term renters. 

As a landlord, you want to find a property, property management company and a neighborhood that is going to attract the best type of demographic. Give Southern Coast Management a call: 1-800-978-4988

Let’s Clear the Air

If your rental property has gotten a little musty because of winter, then now’s the time to put in a clean, new filter.  This is also a good time to have the heating and air conditioning system inspected and tuned up for the upcoming warm weather.  You want to make sure the system is operating at peak efficiency to keep electric costs low.  Make sure that you open up the windows for a time to bring in fresh air. Your guests will definitely appreciate this gesture as the property would end up smelling nice and properly maintained. Through the busy cooling season Southern Coast Management will inspect and replace filters as necessary.

Inspect the Outside

Many rental property owners look forward to the summer months. It’s the time of year when the Grand Strand vacation homes are rented heavily. Remember to inspect the outside of the property for general wear and tear on the landscaping and verifying that outdoor fixtures are in good condition. Also, check for debris accumulating in the gutters or for the hard to reach windows that need cleaning.  Power washing siding, porches and sidewalks are huge for the important to make the best first impression.  Check wood around windows and doors for weather-related deterioration.  Look at the roof to make sure no shingles are lifted or missing.

Carpet and Tile Cleaning

The carpets and tiles should be professionally cleaned at least every 12 months.  Southern Coast Management can recommend a vendor who could do this for you.  If you are cleaning the ceramic tiles yourself, focus on one room at a time, so that you’ll have the peace of mind that the whole rental property is thoroughly cleaned.

Spring Cleaning and Maintenance

It has been said that maintenance and repair are more practical and affordable instead of replacing equipment. Southern Coast Management can help with minor repairs or recommend vendors for larger projects.

Final Words

Spring is just around the corner, and as a landlord, it’s the perfect time to clean your property!  Put away those winter jackets and get ready to make your rental property look better with these cleaning tips. If you need more information on how to prepare your property as a rental, please contact the Southern Coast Management team today at 843-663-6063..

Technology has made life easier for people in many ways. We are benefiting in property management by technology making the stressful process of shopping for an apartment to rent much smoother. The use of modern tools like smartphones has made the process easier for both homeowners and renters. 

These are two of the most significant impacts that technology has changed the industry.

Impact #1: 

Southern Coast Management offers tenant services online including rent payment and maintenance requests. In addition, our company offers owner portals for property owners to monitor their listings online. This high-tech approach to lease payments and maintenance requests makes life that much easier for both commercial and residential tenants. Our secure online portals are available 24/7, so requests can be made and payments can be submitted at any time.

Impact #2:

Information is readily available to help renters with their home search. It’s easier than ever for buyers to access listings and narrow down their list of potential homes without even leaving their living room. Southern Coast Management uses this technology to offer online information on apartments and single family homes for rent.  This use of technology speeds up the entire renting process.

Our goal is to provide you with the best service and manage for your properties – efficiently and effectively. Our team has invested in a complete software solution. We are excited to share several of the new capabilities and how they will benefit you- contact us today for a demo.

Technology has had a major impact on homeowners, tenants and property leasing agents, making the home renting processes easier and more efficient for everyone. 

A potential anxiety and conflict for landlords and renters is a disagreement over who pays for what after move-out. At Southern Coast Management we have created a conflict-free process.

Defining Normal Wear and Tear
Every home, rented or not, will show wear and tear as the home is occupied. The problem comes from differences in opinion about what “normal wear and tear” means, exactly.
Normal wear includes the type of wear that would happen no matter who lived in the space. Slight wear on carpets and minor scratches on linoleum or hardwood floors are normal wear and tear; cigarette burn marks are not. A shower stall that isn’t quite as sparkly and new as it looked before is normal; a hole or massive crack in the shower surround is not.

It begins with an Inspection
We require both move-in and move-out inspections. As much as these inspections benefit our owners and our company, tenants benefit when there’s a discrepancy over damage.
For instance, if we notice a hole in a closet wall during the move-out inspection, we might believe the tenant is responsible. But a copy of the move-in checklist might show that the hole was there before the current tenant moved in. The checklist helps ensure a tenant will either get back all or most of the security deposit back or understand why the homeowner will be keeping some or all of it.

Smooth Operators
Due diligence helps ensure that our homeowners and tenants have the best experience. We use our move-in and move-out checklist to make sure there is an agreement to keep the process smooth. Checklists used by both landlord and tenant, cross-checked during the inspections, help alleviate nearly all misunderstandings about the rental’s condition. Choose Southern Coast Management to provide you, the tenant or homeowner, peace of mind.

Having a realistic understanding of ongoing operational costs of your property while it is being rented is critical when calculating investment property ROI (return on investment.) While the tenant will pay the mortgage and typically the utilities (trash, water, electricity, etc.), other expenses will be your responsibility. These include:
Repairs
City taxes
Property taxes
Property insurance
Mortgage/financing
Property management fees
HOA fees (if applicable)
Landscaping (if applicable)
Capital expenditures (bigger renovations, additions, etc.)
Vacancy costs (this is typically calculated as a percentage and factored into your projected expenses as a conservative oversight, in case the home sits empty between tenants)

Choosing a property management company like Southern Coast Management will help you determine monthly rental income that includes covering these expenses.

How to select a property management company?
Research reviews online
Ask your realtor, lender
Ask for referrals from others who own rentals

Our best advice to investment property homeowners: Always overestimate the amount it will cost to renovate a property, underestimate the rental income you will earn, and overestimate the expenses you will have to pay. Then, when you blow it out of the water, you’ll have a big smile on your face and feel confident in your investment! Contact Southern Coast Management to help guide you through the process.