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?