Residential and Commercial Rental Property
There are numerous real estate investors who invest in either residential or commercial rental properties, or some combination of both. Investment in either of these types of rental property can be a valuable component of a good investment portfolio. Investment in rental property requires not only a knowledge of the local real estate market, but also requires an understanding of the laws governing the landlord/tenant relationship.
In South Carolina, there is a very detailed set of statutes governing the landlord/tenant relationship for residential property. This law is called the South Carolina Residential Landlord and Tenant Act, and it is codified as S.C. Code Ann. 27-40-10 et. seq. (1976, as amended). The South Carolina Residential Landlord and Tenant Act is very detailed and well thought out legislation. It covers what is permitted by way of security deposits, the duties and obligations of the landlord, and the tenants obligations with respect to maintenance of the property. It also covers both the landlord’s and the tenant’s rights and remedies in the event of noncompliance with the rental agreement by either party. Failure on the part of the landlord to comply with some of the provisions contained in the Act can expose the landlord to liability, in some instances for treble damages and attorneys fees. Any person who has residential rental property in the state of South Carolina should be thoroughly familiar with this statute and have a copy of it for handy reference. Such landlord should also have an attorney who is familiar with the South Carolina Residential Landlord and Tenant Act review the lease that the landlord is using, and make sure that the lease is in compliance with the statute.
There is virtually no regulation of commercial leases in the state of South Carolina. As a result, the terms and conditions of the commercial lease agreement entered into between the landlord and the tenant are extremely important. South Carolina law presumes that the landlord and the tenant have equal bargaining power, and that any lease agreement entered into between them is presumed to be the result of arm’s length negotiation between the parties. Since there is very little regulation of commercial lease agreements, there are substantial variations in the terms and conditions of different commercial lease agreements. Having an experienced commercial real estate lawyer review your lease agreement can be invaluable in helping the client obtain a lease agreement with more favorable terms than he or she might otherwise obtain.
In summary, to be a successful investor with the use of rental properties, it is essential to have an awareness of the laws governing the relationship between the landlord and the tenant. An investor lacking this knowledge or information will most likely benefit greatly from a consultation with an attorney who practices law in these areas.
Subject: York County SC Real Estate Law
Disclaimer: This article is for informational purposes, and it should not be relied upon as legal advice.