If you are a landlord, you are likely interested in landlord tax planning. There is no better time to prepare for this year’s taxes than January 1 – of two years ago. If you waited too long, and are now worried about your taxes, there is only a limited number of things you can do.
I plan all year on my taxes. There are capital improvements to make, replacing items that may be working fine but will help keep a tenant or make it easier to get a new tenant. Ways to speed up expenses and possibly defer revenue.
Here are some things to ponder to help minimize any tax burden you have.
Continue reading “Landlord Tax Planning”
My final apartment turnover for March is complete. I am all set until the end of April now. I had the new tenant sign a lease and pay the rent for the remaining March rent, and all of April, on 3/24. I prorated the rent for March, and she also paid all of April.
These tenants have a solid credit score, and solid income, so they should be a great tenants. It is only one person for now, and another that moves in in August. Both have been screened and accepted.
That is the way to do it, declare and screen everyone who will be moving into the apartment right up front. No one wants to be told their significant other can’t move in a month down the road.
Continue reading “Apartment Turnover and Other Maintenance”
There are a lot of landlord discounts out there. I often talk with homeowners who are doing remodeling on their home. They might be buying Sheetrock, paint, appliances or any other remodeling project. Some of them spend several thousands of dollars on the project and are do it yourself people. They are generally too frugal (i.e. cheap) to hire a contractor at $100 an hour to do the work, so they do it themselves.
When I ask if they are getting their discounts, they give me a deer in the headlight look. They know enough to save money on most everything, but not on a remodeling project.
Continue reading “Are you getting Your Landlord Discounts (also homeowners)?”
Protect Yourself As a Landlord. As with most jobs, a landlord’s job is not complete until the paperwork is done. A landlord needs to protect himself with all sorts of documents. The days of renting a home on just a handshake are long gone. Instead, in today’s tenant-friendly states, you need proof of everything. That being said, great tenants do not need any documentation, nor do great landlords. Both sides know what is expected, and both sides perform as you would expect them to – with or without paperwork. The documentation is to protect us (and them) from the unruly behaviors that the ‘other’ guys might have.
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Cap rates are what determine commercial building valuations. All sophisticated investors look at cap rate, even if they do not know what it means. Some Realtors like to hide expenses, and not calculate them to get higher selling prices and higher cap rates.
This post will help you understand how commercial investors use cap rate to evaluate a building. It can also be used as a basis for a residential rental.
Continue reading “Cap Rates and Building Valuations”
Here is how to get rid of a mattress for free. A mattress is one of the things that virtually all low income tenants leave behind. They are also one of the largest and most expensive items for a landlord to get rid of.
If you have been a landlord for over a month, odds are, you have had to dispose of a tenants junk. If you are a low-income, or Section 8 landlord, it is 100% certain you have had to dispose of a lot of junk.
Continue reading “How to Get Rid of a Mattress for Free”
Remember, landlording is a game of probabilities and statistics. By targeting your market, you can maximize profits, that is simple Marketing 101. If you want to maximize your income, targeting your market is key.
There are good tenants in every category, but you are looking for the highest probability of success, not the needle in a haystack. Success is defined a tenant that pays rent, leaves the unit in good order, and you make money. Continue reading “Targeting Your Market to Maximize Income”
This post will tell you how to use credit checks for screening renters.
Why do we care about Credit Records and Credit Score? A credit is score is an indicator of the probability of a default, nothing more. It will show if the person has been responsible with their finances. If a person is responsible with their finances, odds are, they are also responsible with the rest of their lives. A credit score of 700 or better, indicates a solid person. A credit score below 600, indicates a person with some issues, maybe permanent, maybe temporary. Continue reading “How to Use Credit Checks For Screening Renters”
It’s no secret that the Federal Reserve is making money. Most of our products sold in the US, except rents, are imported. Inflation will likely start to take effect. What happens to your tenants, and your profitability, is in your control. Continue reading “Inflation and Its Impact on Rents and Tenants”