Running your rental business: What should you do when tenants want to renew, but only for a lower rent?

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?

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

Tricks of the Trade: An easy way to keep track of property management hours and miles

    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

Running your rental business: A quick tip to avoid an insurance nightmare

  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

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?