Pros and Cons of Renting Out Your Beach Home

Because Folly is the most popular beach inevery summer or half the year, you can tell your
Charleston for vacationers, many home buyersrental agency exactly what dates you want the
choose this area for buying real estate as anhouse reserved for your own enjoyment. You
investment. Especially if you're looking at buying acan even just rent the home out in the off
second home in Charleston, beach real estate inseason (and stay there yourself for the whole
general may be a good option to consider. If yousummer). However, renting just in the off season
know that you'll only be staying in the home awon't bring in the kind of income that you can get
portion of the year, why not place the home on afrom the months of May to August, as these are
rental program to offset some of the costs ofthe peak tourist months in Charleston.
upkeep, insurance, and taxes? There are severalCons
good vacation rental agencies in the Folly Beach1) Having to deal with renters: A good agency will
area that can handle the headache of findingtake care of the headache, so be sure to talk
renters and collecting the money. Out ofwith our local property management companies
Charleston's six beaches, Folly is the surest betabout what services they offer. There will still be
for good rental income, as it has more vacationsome extra work on your side compared to not
rentals on average each year.renting, but most people think that it's worth the
Prostime it takes to have the additional income. If you
1) Potential income: Of all of Charleston's beaches,can afford to buy a beach vacation home and
Folly brings in the most consistent incomealso keep it up on your own, that's wonderful!
averages from year to year. Typically, a FollyHowever, if you could use the extra income that
Beach home used for vacation rentals will bring inrenting out provides, this is certainly a good option
around 70% to 80% of the overall cost of thefor you to consider.
property given that you put 20% down on the2) More wear and tear: You'll have to replace
property. If the property that you are purchasingfurniture, etc. more often because the house gets
doesn't already have a good rental history, weused more throughout the year. But even with
can usually find similar properties to get some ideareplacements every so many years, renting the
of what you can expect to earn in rental income.home should more than cover the replacement
2) Tax write offs: You can write off thecosts you'll pay. And, as an investment property,
expenses on any second home/rental investmentremember that you can write off furniture and
up to the amount that you make in income fromother house needs on your taxes.
its rentals. This means that you can make theIf you're looking for a full time residence (instead
income virtually tax free, or another way to lookof a second home/investment property), Folly
at it is that the property will practically pay forBeach is still an excellent choice for buying a
itself.home. Even if you never rent out your beach
3) Getting to spend time at Folly Beach: Whathome, you'll still be indirectly benefiting from
other investment option allows you to lay out inrenters and investors who put such a large
the sun, swim in the ocean, or watch a sunset ondemand in the real estate market for Folly Beach
your own porch? You certainly won't get as muchhomes.
enjoyment directly from stocks or CDs! You canRegardless of how you plan to use your Folly
set aside as much time as you want to spend atBeach home, be sure to talk with your Realtor to
Folly for you and your family. Whether you wantget statistics and estimates that pertain to the
to be in the beach house for just a few weekstype of home you plan to buy!