Charter One Realty - Office A
Neil Castellane, Charter One Realty - Office APhone: (843) 338-6345
Email: [email protected]

First Rental Properties: Dos and Don'ts

by Neil Castellane 11/10/2019

Photo by 1000Photography via Shutterstock

Investment in real estate rental properties has many upsides. You can make great money long term. But as with any business, there are risks. Before you turn your condo or townhouse into a rental or invest in a house or duplex, consider the ramifications and consult professionals.

Dos and Don’ts:

  • Do set up a legal entity to own your rental properties for you. This may be a Limited Liability Company (LLC), Corporation or Partnership. Don’t hold the property in your own name. This protects you from lawsuits and judgments.
  • Don’t overspend on the property. Don’t overspend on upgrades or refurbishing.
  • Do take care of the major systems such as HVAC, plumbing, electrical, roofs, in-ground sprinklers and garage doors.
  • Do get the property inspected to make sure there is no hidden damage or problems you’ll need to fix.
  • Don’t buy your first rental without looking at it.

Dealing with Tenants

Owning a rental property does not guarantee you’ll have immediate profits. If you go several months unoccupied, you still must pay the mortgage, taxes and insurance. If you don’t know how to go about getting tenants, consider using a property management service. The small monthly fees you pay usually make up for months with no rent or bad renters. 

Another advantage of using a service is that they vet your tenants for you. They run the credit checks and make the phone calls to employers and banks. The only thing worse than no tenant is a bad tenant. Bad tenants damage property, renege on paying their lease payments, and cost you money if you decide to evict them.

Handling Maintenance

As with any home, there’s no actual way to anticipate all the things that could go wrong. Sometimes, one failing system causes problems with other systems. For example, electrical malfunctions can damage the water heater, leading to plumbing failure. A leaky roof might trigger the AC to go out. Don’t run your rental business on a shoestring. Keep funds available to fix anything that goes wrong so that you don’t lose your investment.

If owning rental property is your goal, talk to an experienced real estate professional. They can guide you toward profitable properties, introduce you to property management companies and help you on your way.

About the Author
Author

Neil Castellane

About Neil

I have been selling Real Estate in the Lowcountry for over 21 years. With sales of over $100 Million and hundreds of transactions under my belt, I have the knowledge, experience and proven track record to help you find a new home or sell your property. I am a member and former board member of the Hilton Head Area Association Realtors. I am also a member of community service based organizations including VanLandingham Rotary and have spent multiple years on the board, and am a founding member of the the local Civitan organization.  

About Larry

I have been working with buyers and sellers on Hilton Head for 30 years. I know the Island and the Lowcountry area and have been tuned into the dynamics and changes that have taken place here over these many years. I have specialized in new construction and ocean oriented property in the Lowcountry. However, I have represented clients in over a quarter of a billion dollars in sales all over Hilton Head Island and Bluffton and in all types of property.  I am a member of the Hilton Head Area Association of Realtors and a lifetime member of the Distinguished Sales Award.  My wife, Dawn, and I have 3 children - Jonathan, Stephen, and Abigail.  All of us enjoy being involved in the community, primarily through sports, school, and church. I came down here to sell real estate and have never looked back.  I can’t imagine a better place to live and raise a family.  I can help you with villas, golf-oriented properties, plantation homes, oceanfront or rental opportunities.  Call me today for any and all of your real estate needs in the Hilton Head Island, Bluffton and Lowcountry area or e-mail me at [email protected].

My Promise to you

Contact me today and get the representation you need to find property on Hilton Head Island and the surrounding Low Country. Get the facts: Rental quotes, costs and hidden fees, past sales, floor plans, current MLS and FSBO listings, even properties that are not currently listed for sale yet. I have the knowledge and experience to give you ONLY the BEST service and all at NO COST TO YOU!!! My record speaks for itself and my clients will tell you, ALL OF THEM!!! Desire...that sums up my persona in one word. The desire to accomplish goals in the work place, in the community, and in my personal life. Since moving to Hilton Head Island and working with the Charter One Realty, that concept is stronger than ever. A resident for over 21 Years, I have already established a foot hold in the community.