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What You Need to Know About Rental Income and Taxes | Property Management Companies in Charleston Sc

Author: MediaBeast
Categories: charleston property management,Charleston Property Management Companies
property management companies in charleston sc

Taxes are complicated for everyone, but investors with rental homes have a lot to account for that can make tax time confusing. Luckily, Property management companies in Charleston SC can help ease the burden on investors. While these companies cannot file your taxes for you, property managers provide a lot of administrative services to clients that will help your accountant get the best tax outcomes. 

What is Rental Income?

The IRS defines rental income as any payment received for the use or occupation of a property. These payments include:

  • Rent payments
  • Advance payments
  • Nonreturned security deposits
  • Cancellation fees charged to the renter
  • Lease violation fees charged to the renter
  • Services received in lieu of rent

The IRS treats rental income similarly to how they treat independent contractors, sole proprietors, and small business owners. You will pay taxes at the same rate as your income tax bracket; however, investors are able to claim many deductions to reduce the taxes they owe. 

Deductions Rental Property Owners Can Make on Taxes

Some of the deductions that rental property owners can make on their income taxes include:

  • Interest on the mortgage or loans
  • Property taxes
  • Updates, renovations, repairs
  • Utility expenses
  • Homeowners insurance
  • Advertising costs
  • Fees for property management
  • Maintenance fees
  • Cleaning fees
  • Vendor fees
  • HOA or condominium fees
  • Deductions for depreciation

One of the best things rental property companies in Charleston SC can do for their clients is provide monthly financial statements, year-end statements, and other information owners can use to make tax filing smooth and efficient.

When you use property management companies in Charleston SC your rental income is passive which means any loss relating to your rental investments can offset income you have from other sources. This could lower your tax bill. 

Investors need to report their rental income on a Form 1040 or 1040-SR and Schedule E, Supplemental Income and Loss. If you have questions about some of the boxes you will have to fill in on these forms your property manager can help you know where to look to find the answers!

If you are ready to explore a partnership with a top property management company, call Scott Properties of Charleston at 843-202-4274.

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Are Property Management Companies a Scam? | Property Management Companies in Charleston SC

Author: MediaBeast
Categories: charleston property management,Charleston Property Management Companies,Property management companies in Charleston
Property management company in North Charleston

Property management companies in Charleston Sc have heard it plenty of times—property management companies are scam, aren’t they? Property owners are sometimes nervous about hiring someone else to manage their properties; after all, being a landlord is easy, right? 

Investors who are buying their first homes for rent and have never worked with property management companies in Charleston SC may not see the benefits that come with hiring a property manager; however, these companies are definitely not scams. While hiring property management may be another investment to make, the return will be worth every penny. 

What Do Property Management Companies in Charleston SC Do?

Landlords must wear lots of hats from maintenance to marketing, leasing, and even legal proceedings. One of the top things a property management company will do for you is take all the weight of these various jobs off your shoulders and hand them off to the experts in those areas. 

One of the top advantages of using property management companies in Charleston SC is being able to sit back, relax, and know professionals are keeping your home maintained at a top standard, rent is profitable, and the tenants living in your home are the most qualified.

Some of the most valuable tasks property management companies in Charleston SC handle for clients include:

  • Rent collection
  • Tenant account management 
  • Reporting of property financial, occupancy, leasing, and maintenance status
  • Marketing of the property 
  • Showing potential renters unoccupied properties
  • Leasing 
  • Inspecting properties
  • Handling tenant communications
  • Handling legal matters
  • Handling maintenance requests
  • Investigating complaints and leasing violations
  • Working with vendors
  • Conducting background and credit checks

These tasks take a lot of time to complete and managing properties is a full-time job. Investors typically already have a full-time job or are looking to enjoy retirement in peace. Property manager partnerships can make an investor’s life easier, your homes will build more equity, and residual income is certain. 

If you are ready to explore a partnership with a top property management company, call Scott Properties of Charleston at 843-202-4274.

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Charleston Property Management | When will the Federal Eviction Moratorium End

Author: Scott Wallace
Categories: charleston property management
Charleston Property Management

Now, more than ever before is when rental property investors need Charleston property management the most. For the last year, landlords, property managers, and investors have been struggling to collect rent from tenants. Some tenants have been affected by COVID and not able to pay rent. With the federal moratorium on evictions in place, investors have had a tough time enforcing rental payments and due dates or being able to evict tenants who are refusing to pay rent.

The current situation has put a lot of strain on investors, and it looks like the moratorium on evictions will be in place until at least June 30th, 2021; however, Charleston property management services are available to alleviate the stress and make your life easier. When you work with professional property management companies, you get a landlord, maintenance professional, and legal expert all in one, because all those people work right there as staff of the companies.

Do I Need a Property Manager?

You might be thinking to yourself, “Why would I hire a property manager when I am not making any rent?” Well, the answer to this is that you must look at partnering with Charleston property management as not just another invoice to pay every month. Property management is an investment into your portfolio and business. Your property manager can represent you in court, file for collections on tenants, arrange cleanouts after evictions, handle property maintenance, and those daily calls for delinquent rent payments that no investor wants to spend their day making.

Charleston Property Management

Property managers can also keep an expert paper trail so that when the federal moratorium on evictions does end, and your renters are still not paying and did not receive assistance, you can go to court and have your bases covered and your business protected. A property manager can also help you find new renters that have a steady income and are qualified tenants to move in after an eviction. They can also manage to get the home ready to rent which will save investors a lot of time and money.

If you are looking for professional property managers to help you make the most of your rental property investments, call Scott Properties at 843-790-4929.

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Property Management in Charleston | How to Make Moveouts Go Smoother

Author: Scott Wallace
Categories: charleston property management,Property Management,Scott Properties
Property Management in Charleston

One of the most strenuous things employees of property management in Charleston have to deal with is the tenant moveout process. There is always a sense of anxiety and dread when it comes to the final moveout inspection. Property managers never know what to expect when they open the door of a home after a tenant has turned in the keys once and for all. Property managers walk into a lot of different situations after a tenant moves out—homes that are trashed, pets left behind, food left in the fridge or cabinets, overgrown yards, and other disasters. Luckily there are a few ways to make moveouts go much smoother and reduce risk to the owner.

Tips to Make Moveouts Go Smoother

  1. Inspections- Property management in Charleston has a duty to keep the properties of their owners safe, occupied, and well-managed and part of doing this is performing rental property inspections. Walk-throughs should be completed before tenants move their belongings in (when the lease is signed usually), at the six-month or halfway point of the lease, and again before the keys are turned in. Tenants and property managers can sign these inspection forms accepting responsibility to conditions.
  2. Moveout Folder- 30 days before a tenant moves out a property manager can provide them with a moveout folder with checklists for moving out and cleaning, forwarding their mail, and how to schedule their moveout inspection. Tenants often appreciate knowing exactly what they are expected to do for moveout and even if the lease states these provisions already, a moveout folder with checklists will reinforce the expectations.
  3. Hand Deliver Notices or Send Certified Mail- One of the golden rules of property management in Charleston is always to verify the tenant received any communications sent. One of the best ways to do this is to hand-deliver notices or send certified mail. Taping notices to doors is not reliable.

Sometimes, no matter how much a property manager prepares for tenant moveouts, the tenant will still leave the home in a bad condition or not perform the cleaning tasks. This is where property managers on your team can be a lifesaver. Property management companies have connections with vendors that can come in and get the cleanouts done quickly!

If you need a property manager, call Scott Properties at Scott Properties of Charleston at 843-779-6527.

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Charleston Property Management Company | How to Tell Your Tenant You Are Selling the Property

Author: Scott Wallace
Categories: charleston property management

The last thing your tenants want to hear is that you are selling their home and they will have to move. When these moves are unexpected and the tenants have no forewarning, the situation can put an incredible amount of stress and hardship on the tenant. Families with children might scramble to find a Charleston property management company in the same school district or be closer to work or daycare. Although it is tough, it is a part of a property manager’s job to make tenants aware of changes like this, but there are ways to make it easier.

Telling Tenants Their Home is For Sale

The best thing an investor can do is sell the rental home to another investor that will allow the tenants to keep living in the home and be able to renew their lease. New leases under new ownership might come with rent increases or other changes made to the lease, but at least the tenants will not be moving out and looking for another Charleston property management company to rent from.

If the buyer is not wanting to rent the home, you will need to work with your legal team to determine whether the owner is required to allow the lease terms to be fulfilled. If the buyer is not wanting to renew the lease, at the end of the term, they should be encouraged to let the buyer know as soon as possible. Many renters will move out early when given the choice by a Charleston property management company to break their lease early without penalty and or get their full deposit back.

If the tenants will need to move out upon the sale of the single-family rental home in Charleston, they should be given at least 60 days’ notice or as otherwise stated in the lease under termination terms. Investors should also consider talking to the tenants well in advance of putting a for sale sign in their front yards. You do not want a tenant to wake up and see that out the window before they have had a chance to know what is going on.

The last thing you need to ensure you do is put everything in writing. Deliver documents and notice by hand whenever possible or certified mail so that you have signed receipt of having received the mail. Make sure all notices sent by the Charleston property management company are on letterhead and include contact information.

If you are ready to let someone else take over communicating with tenants, hire a property manager at Scott Properties by calling 843-790-4929.

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Property Management in Charleston, SC | How Many Rental Properties Do I Need to Retire Comfortably?

Author: Scott Wallace
Categories: charleston property management

Many investors who decide to get into property management in Charleston, SC do not jump into the decision lightly, especially if they are retirees. Buying single-family homes and turning them into rental properties is a great way to earn passive income in your retirement, but for most investors, one rental will not be enough to sustain a good income through their later years in life.

The best way to figure out how many rental homes you will need to sustain your lifestyle into retirement is to figure up your monthly expenses and the average profit you make off one rental home. Divide expenses by the profit amount and the answer will be the number of homes you will need to rent to cover all your monthly expenses.

Rental Property Profits

The profit you make on your rental properties will depend on the expenses you have and the amount of rent you can charge. Expenses incurred on rental properties include:

  • Mortgage
  • Taxes
  • Insurance
  • Maintenance
  • Property management in Charleston, SC fees
  • Lawncare
  • Marketing expenses
  • Legal fees
  • Losses from vacancies

Once you add up these expenses, subtract the amount you charge for rent, and you will be left with your profits. You will need to do a similar calculation to figure out your personal monthly expenses. Add up all your bills including how much you budget for entertainment and shopping each month. Consider all sources of income you have including pensions and retirement accounts to find out what your monthly cash flow is including rental income. If you do not have enough income to cover your expenses, you will need to add more rental properties to your investment portfolio.

The number of single-family rental properties you need to have in your portfolio to sustain your standard of living post-retirement will be different for everyone with many variables to be considered. One thing that is for sure however is that when you are carrying multiple properties, it is always a good thing to hire property management in Charleston, SC to help improve your return on investment.

Scott Properties is ready to help manage your single-family rentals. Give us a call today at 843-790-4929.

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Charleston Property Management | The Top Customer Service Skills A Property Manager Needs

Author: Scott Wallace
Categories: charleston property management
Charleston Property Management

If you are going to find a job in Charleston property management, you will need to have a specific skillset in addition to relevant experience. Your customer service skills need to be on-point and top-notch if you are going to be one of the best property managers in Charleston. You should also be prepared to speak to these customer service skills in a job interview; and if you do not have these skills, but you are trying to rent houses, you should hire a professional instead.

Top customer service skills for property managers

  1. Active Listening- You must be an active listener if you are going to be effective in Charleston property management. You need to listen and understand your tenant’s concerns, comments, and needs to be able to respond in a while that is beneficial for everyone.
  2. Responsive- Tenants become long term residents when their needs and concerns are being tended to and their property manager is responsive. Even when solutions cannot be provided at once, when a tenant makes a maintenance request or has a complaint, you should do your best to acknowledge receipt of the communication as soon as possible.
  3. Accommodating- Whenever possible a great Charleston property management company will be accommodating to their tenants and try to offer solutions. While it is important to follow the rules outlined in the lease, providing bill payment solutions, preventive maintenance, and keeping things convenient for renters with online tenant portals, are great ways to increase tenant satisfaction.

When you can master these three customer service skills, you will make a fantastic addition to a Charleston property management team. When you own rental properties, it is important to ensure that the property manager you hire to help you make the most of your investment owns these skills and more. A professional property management company often has all the solutions you are looking for when it comes to a high-quality team with the best skill set and vendor partnerships.

If you are interest in working with one of the top property rental companies in Charleston, give Scott Properties a call at 843-790-4929.

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Charleston Property Company | How to Create A Successful Online Rental Ad

Author: Scott Wallace
Categories: charleston property management,Scott Properties
Charleston Property Company

Few people use the newspaper to find rental properties, which have made the classified ads obsolete for any Charleston property company. Instead, nearly every person looking for a rental in Charleston is going to look online to find the perfect home.  In a market as competitive as Charleston, property managers must make advertising and marketing online a priority.

5 Steps for Listing A Rental Property Online

There are five basic steps to creating a successful online rental ad that will get your property rented quickly to the perfect tenants.

  1. Choose Your Platform- There are several online platforms where rental homes are advertised. The best Charleston property management company will post across several, including Zillow, rent.com, Trulia, Relator.com, DoorSteps, Craigslist, and others.
  2. Click Worthy Title- The title of your advertisement is what makes them click. Be sure to include the number of bedrooms and bathrooms, as well as the neighborhood in your title.
  3. Detailed Description- There is nothing worse than tenants viewing a property only to find out it lacks what they need. Make sure your descriptions are detailed with pet policy, deposit, rent, and fees. It would help if you also mentioned neighborhood highlights and amenities, school district, and date available.
  4. List Tenant Requirements- Taking time to show prospective tenants around to discover they aren’t going to qualify is a waste of time. Make sure tenants know the application requirements before the showing by listing in the ad.
  5. Photos: The best Charleston property company understands that pictures are worth 1000 words. Make sure you include clear photos taken while the home was clean and well-lit. If you can, stage the rental home with furniture and artwork for your marketing photos, this will help tenants envision themselves there.

Following these steps will help ensure potential renters see your advertisements. If you need a Charleston property company to help you manage your single-family rental home marketing, call Scott Properties of Charleston at 843-790-4929.

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Charleston Property Management | What Style House Should I Invest In?

Author: Scott Wallace
Categories: charleston property management,Scott Properties
Charleston Property Management

One of the best parts of Charleston property management is finding the perfect house to invest in. You might wonder what are the trendiest style of houses that people are looking to rent in Charleston? Some of the most popular styles of architecture found around Charleston include:

  • Georgian
  • Federal
  • Greek Revival
  • Italianate
  • Queen Anne
  • Charleston Single House
  • Art Deco

One thing all these houses have in common is they are multi-story homes. They also have lots of personality and charm. Newer homes built after the 1950’s, are commonly more modern with attached garages. There are also beautiful ranch houses around Charleston.

Features of A Desirable Rental Property

The style and architecture of a home are less important than the features that renters are most looking for from a Charleston property management company. Some of the requests renters most often have include:

  • Off street parking
  • Porches
  • Yards
  • Central air
  • 2+ bedrooms
  • 2+ bathrooms
  • Dining room
  • Kitchen with all appliances
  • Washer and dryer hookups or included
  • Large master bedroom
  • Walk in closets
  • Overhead lighting and ceiling fans

The more features you can include with your rental home, the more desirable the property will be. When you start adding in luxury amenities such as whirlpool bathtubs, hot tubs or swimming pools, beach access, and other such features, the rental rate can be higher than less desirable properties in the same area. You will have a competitive edge over the other Charleston property management companies and see your single-family homes always occupied.

Services Offered by The Best Charleston Property Managers

Not only do property features drive the rental value, so do the services you offer as a property manager from lawn and garden maintenance to online rental portals and request forms, the more you can offer your tenant from a customer service standpoint, the more likely they will be to renew their lease, not complain about rent increases, and stay satisfied.

If you are looking for a Charleston property management company that can do it all, call Scott Properties at 843-790-4929.

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Charleston Property Management | How Much Should You Charge for Rent

Author: Scott Wallace
Categories: charleston property management,Scott Properties
Charleston Property Management

One of the struggles of Charleston property management is determining how much a property owner should charge for rent on a single-family home. You don’t want to charge too much because it will be hard to rent out. On the other hand, charging too little means you’ll make fewer profits. Luckily, there are some standard ways that Charleston property management companies use to set rent on a single-family home.

  1. Home’s Value- The great thing about investing is that you can purchase a home for much less than it’s worth. Rent should be based on what your property is valued, not what you paid for it. Most property managers charge between .8% and 1.1% of what the home is appraised for. If the home value is $250, 000 you can charge anywhere from $2,000 per month to $2,750 per month. Rule of thumb is to charge less on the more expensive homes and closer to the one percent mark on the more inexpensive homes.
  2. Market Value- Charleston property management companies do research on what other comparable properties are renting for in the same neighborhood. You should keep your rent price within a few hundred dollars of the average.
  3. Mortgage- Though it may seem like a no brainer, Charleston property management companies must ensure that the rent will cover the costs of the mortgage, property insurance, property taxes, and costs of maintenance on the home.

An experienced Charleston property management team understands the market rent in the various neighborhoods around Charleston and can help you decide the best price point for your single-family rental home. Teaming up with a professional property manager takes a lot of the burden of research and evaluation off your shoulders and into the hands of someone that knows the market better than anyone.

If you’re ready to work with a qualified Charleston property management team, call Scott Properties at 843-790-4929.