Starting your rental business: Know the difference between active and passive income

Of course you're becoming a landlord to make money, but part of your business's success comes at tax time.  How you're taxed -- as active or passive income -- makes a difference to your bottom line.  In future blogs, I'll discuss how to determine if you qualify for active/material participation, and the advantages of either … Continue reading Starting your rental business: Know the difference between active and passive income

Running your rental business: Should you set up a separate property management company?

Maybe!  Having your properties and management duties separated into different companies can have many advantages. The main advantage of creating a management company is that you can easily deduct office expenses (even if that's a home office), vehicle expenses, and employee costs.   You can arrange healthcare for your employees, and set up retirement programs.  A … Continue reading Running your rental business: Should you set up a separate property management company?

Starting your rental business: Should you buy a fixer-upper for your property?

    You may be considering buying a "fixer-upper", dated property, or property in distress to fix-up and use as your rental property.  Before you jump in, there are many things that you need to consider! First, what kind of market are you in?  Are you in a market where hardly any properties are available, … Continue reading Starting your rental business: Should you buy a fixer-upper for your property?

Starting your rental business: The importance of a home inspection

You know the saying "buyer beware."  This is true, not only when you buy your personal residence, but is equally important when you buy an investment property!   There are several reasons to make a home inspection part of your home buying experience: identifying issues evaluation of the seriousness of issues possibility of negotiating the price … Continue reading Starting your rental business: The importance of a home inspection

Starting your rental business: What kind of landlord do you want to be?

I'm truly what you would call an accidental landlord. Like many couples, my husband and I found ourselves with a one-bedroom condo unit that we decided to rent out.  We thought that we might make a little money, certainly at least break-even, and then sell the property for more money years later.   That was … Continue reading Starting your rental business: What kind of landlord do you want to be?