As a landlord, at some point you'll be faced with this decision: Your tenants want to extend their lease for another year, but only at a lower price. There are several important considerations to help guide you through this decision. The first question I have for you may surprise you, but has played an important … Continue reading Running your rental business: What should you do when tenants want to renew, but only for a lower rent?
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
When you are checking in your renters, they will be overwhelmed with information from you, in addition to all the stress of moving. Even if you go through these items when you meet with them, leaving printouts of instructions will be invaluable to them. Plus, if they know how to take care of your property, … Continue reading The Landlord List: Information to leave with your tenants
As a property manager, you will need to keep track of miles and hours for a variety of reasons, mostly tax-related. You also will find yourself making notes about when renters contact you and when repairs are made. I used to have a separate notebook for each property, and made copious notes. As … Continue reading Tricks of the Trade: An easy way to keep track of property management hours and miles
Make sure that your business and personal names match up on your mortgages and rental properties. If not, you could be denied coverage when you need it, based on a mere technicality. Often this is not easy. You will likely have to take out mortgages in your name, whereas your property will likely be … Continue reading Running your rental business: A quick tip to avoid an insurance nightmare
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?
At some point, your renters will likely pay a bill for you. Perhaps they've been nice and done a repair themselves, and of course want to be reimbursed. The concern is the much more likely scenario: they have had to pay a bill when a repair was done, and you weren't able to set up … Continue reading Tricks of the trade: The easy way to get proof of expenses
In addition to an insurance policy, which typically covers fire, hail, and other major damage, you may want to consider purchasing a home warranty for your rental property. A home warranty can be purchased from many companies, and will cost about $600 a year. They will likely charge $75 or so per issue (and may … Continue reading Running your rental business: Should you purchase a home warranty?
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?
A quick tip when making copies of keys for your renters