Vacant rental properties can kill profits and become a liability sooner than you think. Unfortunately, protecting such units is also quite challenging since no one is around to check on them or keep you posted about their condition. This makes a vacant rental property immensely vulnerable to various threats, resulting in irreversible damage to your investment.
Here are some of the greatest dangers of a vacant rental property in Charleston, South Carolina.
Property Damage and Reduction in Market Value
A leased property is cleaned by the tenants, maintained well, and kept in habitable condition. However, when tenants don’t occupy the unit, spiders, mosquitos, pests, and other insects might cause it to deteriorate due to lack of maintenance.
Vacant property with faded paints or cracked doors, broken gates and windows, and overgrown grass and shrubs can soon become a dump. This is both unhealthy and unsafe and can significantly reduce the market value of your property.
Possibility of Theft and Vandalism
It is very easy for rule-breakers to identify a vacant unit. Even if you keep an eye on the property, you might not be able to be around it 24×7, which increases the chances of a break-in. Criminals may rob you of your appliances, furniture, artifacts, and even the essential utilities placed in the unit. In addition, a vacant unit is often a target for vandals who may ruin your walls with graffiti, or break doors and windows, costing you a fortune in repairs.
The Threat Of Squatters
One of the greatest dangers to a vacant property is occupation by squatters. The chances of squatters occupying your rental unit are higher if you are an out-of-state landlord. They can damage your property, neglect the safety measures, use your house for illegal purposes, and be a serious danger to your neighbors’ safety.
Fire, Floods, And Water Damage
Vacant properties also face the risk of severe damage due to natural causes, like floods and fires. If a pipe leaks or the roof breaks during rains, and there is no one to report the imminent flood, it can lead to severe water damage like molds, rusted iron or steel, and broken glasses.
Since a vacant property is prone to such damages and early deterioration, insurance companies often don’t offer coverages to such investors.
Impact on Efficiency of Unused Appliances
It takes a lot of capital to invest in appliances for your Charleston rental, and a vacant unit is like a death knell for them. Appliances may deteriorate due to the lack of proper use and neglected maintenance, like changing filters or batteries; they may get stolen or, in worst-case scenarios, be damaged permanently due to fires or floods.
High Renovation Costs
Due to potential extreme damages and deterioration, you might have to renovate the property entirely to make it habitable again. If it is left vacant for over 4-6 months, you might have to bear the renovation costs equivalent to a fixer-upper renovation. You may need pest control services, a paint job, new furniture and appliances, landscaping, and more to refurbish your unit.
We suggest hiring a property manager if you cannot look after your property due to personal reasons. Property managers will keep an eye on your unit routinely, maintain it, and most importantly, get it rented.
Get associated with the best Charleston property management company, Meridian Residential Group. We have managed the residential rental for over 20 years. We value your investment and work to offer nothing but the best.
Meridian Residential Group in North Charleston provides both single-family and multi-family property management in the Charleston, SC area, including in North Charleston, Summerville, Goose Creek, and Moncks Corner, among other cities.
To know more, contact us at Meridian Residential Group.