I have an acquaintance that I'll call "George". George was relocated and decided to rent out his property rather than sell. He diligently called his insurance company and purchased renters insurance, signed the paperwork, paid every year, and didn't give it another thought. About now alarm bells should be going off in your head. Why? … Continue reading Starting and running your rental business: another insurance mistake to avoid
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
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?
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?
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
You may know what to do when showing your property, but keep in mind what NOT to do!
Even if you plan on being a one-person business (as I consider myself), you still need a team. There are for things that you either can't do on your own, or shouldn't! Mistakes can be costly and time consuming. Having a list of professionals will provide a more solid foundation for your business. The first … Continue reading Starting your rental business: Build your team
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?