Myrtle Beach Real Estate - Myrtle Beach Homes For Sale - Myrtle Beach Foreclosure Listings - North Myrtle Beach Real Estate - Commercial Real Estate

Myrtle Beach Real Estate Blog « Back

VIDEO: What to do When Your Home Won’t Sell

Avoid These Common Pitfalls When Renting Your Properties for Extra Income

Today I would like to speak about renting your Myrtle Beach property instead of selling it. I have had a lot of sellers here in the Grand Strand come to me and say that they would rather rent out their properties instead of just selling them. This might be a good option for you if you have not been able to successfully sell your property.

Over the years I have noticed that people either rent their properties intentionally (investors) or they do this as a backup plan. Usually the latter don’t do so well with renting their properties. Here are some things you will have to consider if you would like to rent your property:

Reality Cash Flow Chart: This is where you grab a pen and paper and determine what your monthly payments will be, which includes taxes and insurance (keep in mind taxes are much higher in South Carolina for non-primary residences). After a little careful calculation, it should be clear whether or not renting your property would be a worthwhile investment.
Management: It might be hard for you to answer calls about a broken water heater at midnight if you’re not in Myrtle Beach or the Grand Strand. This is why it might be beneficial to hire a management company to run your property. They can increase the satisfaction of your tenants, and make your job a little easier.
Miscellaneous Expenses: Most of these expenses would come from repairs, assessments or inspections. You also need to account for times when your property is vacant and you will not have regular cash flow.
If you don’t have a mortgage you will need to determine your rate of return on the property and also your opportunity cost. If you can pull cash out of your property and invest it elsewhere with a higher return, then I would probably suggest for you to simply sell your property and invest your money in another venture.

Please let me know if I can be of service you while you make these tough decisions. I would love to provide you with assistance.

As always, please contact me if you’re interested in buying or selling real estate here in Myrtle Beach or the Grand Strand in general.