Deciding Neighborhoods for Your Real Estate Investments

 How to Decide Which Neighborhoods Are the Best Fit for Your Real Estate Investing Strategy.

Most people say, "location, location, location" because the location is very important when it comes to investing in real estate. You need to find the right properties in the perfect location at a good price if you want to make a profit on your real estate. 

So, how can you decide which neighborhoods are the best fit for your real estate? Here are some things to consider. 

You need to figure out who you want to rent to, before you choose a property. If you are looking to rent your properties to college students, you are going to want to find properties that are close to certain colleges. If you want to rent to couples with young children, you are going to want to make sure that you select neighborhoods with playgrounds and good schools.

If you prefer to rent to older couples who are going to take good care of their home, you may want to look for neighborhoods that have an active senior center. You may even want to choose properties that are near communities for those over a certain age. You will attract others who want more freedom, yet they want to be close enough to their friends. 

You also should think about the types of rentals you want. Are you going to want seasonal rentals, where people vacation? This may bring you more income because people pay more for a week's vacation than they do on their home. However, you are also going to have to set up bookings and make sure that the rental gets cleaned between each tenant. You may also have downtimes, when you won't have anyone interested in renting your property. 

Would you prefer to find homes, where your tenants may stay for a year (or even longer)? Long-term rentals can be great, because many will take care of the property like they would their own home. They don't mind mowing the lawn or even doing some painting, because they are in their own home. 

You also want to choose neighborhoods that are decently priced. If you decide to pick property in a lower-priced area, you may not be able to get enough rent money to afford your mortgage. Instead, you are going to want to find neighborhoods that are decently priced. However, if you choose a location that costs too much, you might find yourself in over your head. 

Choosing the right location for your rental property can be challenging. You want to get the right tenants, so you have to choose wisely. To do so, you really need to think about who you want living there. Do you want young parents, or would you prefer to do vacation rentals? You also need to make sure that you can get the property at the right price. Otherwise, you could be paying them to live there! 

 

Determining Rental Value

 3 Ways to Determine the Rental Value of a Property Based on Its List Price

With the housing market going topsy-turvy over the last year and half, figuring out the rental value of an investment property can be difficult. Zillow and other online estimates can be outdated and old ways of pricing may not be the most accurate. If you are considering investing in a particular market, it is important to do your homework to determine if the purchase is a sensible one. You may need to look beyond the price per square foot. Keep in mind, this may require some good, old-fashioned detective work. 

Interview Property Management Companies 

Whether you are choosing to go with a property management company or not, asking them questions about the market is one of the best ways to determine if a property is worth your time. Discuss with them what the rentals have been like over the last year, and when you can, over the last six months. This will give you an estimate of how easy and at what price point similar properties are commanding. 

Talk to a Realtor

Realtors can tell you a lot about the community, the most recent price of similar properties and other things planned for the community to determine if there will be a lot of competition for rentals shortly. For example, if you are buying a condominium in a particular area but there is slated to be a new high rise apartment building in the area within the next year, find out what similar units will be asking for in rent. 

Consider the X Factor

While the price per square foot is a great launching point in determining the rental value of a unit, consider the amenities and other intangibles that can add value. Things like a doorman building in a city environment, access to gym facilities, outdoor space, new appliances, and even a great layout or view can have positive effects on your ability to command a higher price for your property. These types of comparisons may include a visit to other buildings or single family dwellings to determine how your property compares.

The best advice is to talk to the people on the ground who have seen how the rental market has reacted to the swings of the last year and a half. Sometimes that conversation can be invaluable. 

Benefits of Property Management Companies

 Why You Should switch to a Property Management Company Before Winter Starts

Snow, ice, water, low temperatures, and other factors are some of the things to deal with during winter. You have not invested a lot of money in your rentals to start making losses in winter, which can easily negate all the gains you have made this far this year. Property management ensures that your rental property remains both profitable and valuable throughout the unpredictable fall/winter.

Keep reading to discover these top 4 reasons hiring property management makes all sense now than ever.

1. Maintenance and Repair Works

Tenants have to deal with low temperatures during winter. Essentially, they're mostly indoors because of the harsh weather outside. This basically means that the HVAC system will be working harder. If it's included in the rent, then it's your responsibility to ensure the heating equipment is in good condition. Managing this can be hectic, especially if you have a couple of properties. Rental management companies have created relationships with the best HVAC contractors and got the team to deal with all those repairs and maintenance. The result is happy tenants, which keeps your property occupied. 

2. Cut Costs

The harsh weather plus the long hours spent at home means high electricity usage. During the winter, you want to reduce expenses as much as possible if utility is part of the rent. Property managers can improve the property's energy efficiency by sealing windows or cracks to prevent heat loss. Besides, they ensure the heating appliances are in good shape and energy-efficient, as well as installing energy-saving bulbs.

3. Accidents and Fire Prevention Precautions

It's no surprise that most property fires and accidents are reported during winter. Such can mean costly litigation and unrecoverable property damage. Hiring professionals ensures that neither has to happen to you. This is done by ensuring fire/carbon monoxide alarms are working and eliminating any appliance that may cause fire beforehand.

4. Preparing the Rental for Winter

The reason you own rentals is to make an income. But that depends on whether you have tenants all through. Property management makes it easy for tenants to stay put when winter approaches by making the area safe through:

• Cutting down branches or trees that may pose a danger during winter.
• Cleaning and clearing drains and gutters.
• Checking roof and water pipes for leakages
• Measures to clear ice and snow off the rentals

Hire Leaf Management for Quality Services

Our business is to make yours profitable and long-lasting. Years of experience give us an edge to better manage your property. We protect your tenants and investment with our state-of-the-art tenant screening and market know-how. Contact us today to learn more about our services, including private financing options.

Remodeling Budgets

 How to Change Your Rental Remodel Budget Taking Into Account Material Shortages and High Prices

With so many people working and learning from home over the last year and a half and completing their own DIY projects, the demand for renovation supplies has caused a rise in material prices. This makes prioritizing or staggering repairs and remodels based on need and impact on your bottom line rental price very important for property owners. In a Good Morning America interview in May 2021  with the President of the National Association of the Remodeling Industry, the estimates are that remodeling costs are 25-40% higher than last year.  Appliances and lumber have seen a sharp rise in costs. However, experts expect that prices will begin to decline in the fall. So putting larger, big ticket items on the back burner may be best for now.

If you are still in need of remodeling, here are some alternative ways and ideas to get the job done. 

• Painting. This is a great way to make any space feel new again.  According to HomeServe.com, a gallon of paint can cost between, $15-30, with the average-sized bedroom needing 2-3 gallons. The cost to have a space professionally painted can range from $500-$3000 for 1,000 square feet and a gallon of paint can cover 400 square feet.
• Refinish Cabinets. Looking to spruce up the kitchen or bathroom without a high renovation cost? The cost to refinish cabinets is far less than replacing them, up to $4,000. This is a great alternative to buying them since materials and labor are still in short supply.
• Upcycled Materials. If you are in desperate need to replace furniture after a hard year of renter use or the kitchen cabinets won't make it through the next renter, consider upcycled materials. Places like Habitat for Humanity sell  new and reclaimed cabinets, appliances and building materials. 

Before you embark on a remodel or renovation project, do some homework and determine where the greatest need lies. Once you have done that, you may be able to find a less expensive alternative if you just take the time to think outside the box. 

 

Signs it's Time to Rewrite Rental Agreements

 6 Signs It's Time to Rewrite Your Rental Agreements for Future Tenants

The rental agreement is among the most crucial document every landlord ought to be mindful of. A clear and well stipulated rental contract ensures smooth living among tenants as well as protects your property from damage. An incomplete/outdated document puts you at greater liability, which can sometimes lead to pricey lawsuits. It's therefore paramount to ensure that every tenant gets an updated contract before occupying your space.

While this is mostly the case, you might have been overlooking some tell-tale signs to know when exactly you need to redraft your rental agreement. Below are some of them.

1. The Current Lease is Old

Old here is relative. But it all boils down to the same thing – time changes things. When last did you review your lease agreement? You might be making losses either because the market fluctuated and the rentals are damned as expensive, or you're charging the same price for 5 years. Modify your agreement to reflect the current market environment.

2. Just Finished a Remodeling Project

After revamping your rentals, it's essential to revise the agreement to reflect these changes before enlisting new tenants. For example, you'd want to charge more because the rentals are more hospitable. Besides, it's vital to alter rules to ensure the property is protected from damage so that your effort and money don't go down the drain.

3. Laws Changed

Property laws both at state and county levels keep changing. The last thing you want is to get on the wrong side of the law just because you failed to update the rental agreement on time. That can cause fines and losses that you could otherwise avoid.

4. Tenants Experience

This can be good or bad. For instance, if your previous tenants kept complaining about their neighbors' pets, you'd want to include a pet's clause detailing rules concerning keeping pets before people can start searching for somewhere else.

5. More Occupants

If someone is coming to stay with one of the renters as a roommate (this happens mostly for colleges/university students), then your lease agreement should be up for review. If there is no clause on how many roommates can be allowed or procedures for enlisting additional occupants, include it before another tenant faces the same issue.

6. You have a New Rental(s)

It's not surprising that many landlords might see no problem with using the same lease template for their newly acquired property. This is not recommended because every property is uniquely different. Learn to draft a new agreement for every rental property so that the specifics of each one are perfectly reflected.

Today's Key Takeaway

Rewriting your rental agreement between tenants is a must-to-do thing if you're to remain at the top of the game in this ever-changing industry. This is because it's impossible to change terms midway the lease without first getting the tenant's approval. Hiring a property manager like Leaf Management can also be of great help to enact the above efficiently.

Refinancing Your Rental Properties

 Should You Refinance Multiple Rental Properties At Once?

As interest rates continue to go down, many homeowners are trying to refinance their homes. As a landlord, you may also want to think about refinancing your rental property. However, if you have several places, should you refinance them all at once? 

Here are some reasons why you may want to refinance multiple properties at once.

• Lower interest rates. If you are able to pay less each month on your rental properties, this can only mean more money in your pocket. However, it may also allow you to continue to pay your current monthly mortgage, and pay your property off faster than you ever imagined! 
• Extra cash in your pocket. You may also want to look into a cash-out refinance, where you can refinance your properties and get some extra money in your pocket. You can use this to pay off some of your other debts, or you may even want to remodel your properties.
• One payment each month. If you have multiple mortgages, you are going to be writing several checks a month. If you put them all together, you are only going to have write one check a month. Paperwork is much easier when you only have one big bill to pay each month. 

Here are some reasons why you may not want to refinance multiple properties at once.

• Not eligible. If your credit score isn't high enough, you may not be able to refinance any of your properties. Equity is also important. You may not have enough to allow yourself to do any refinancing. 
• Better to pay one off. There are times when it is in your best interest to pay off one loan first. Many will recommend a cash-out refinance to pay off one of your mortgages instead of refinancing them all. 

If you are thinking about refinancing your rental properties, you should talk to your lender. He or she will help you decide whether or not it is a good idea for you. 

Single-Family vs. Multi-Family

 Single-Family vs. Multi-Family Residence: How To Find the Right Property Management Company

When you have a rental property (or multiple ones), you may want to consider hiring a property management company. However, not all companies are created equally.

Not sure where to start? Here are some tips to help you find the right property management company. 

Ask around. The best way to find a good property management company is to ask around. In fact, your real estate agent may have a good idea of some companies in your area. He or she may have heard about which companies are helpful, and which ones aren't as helpful. You should also ask other landlords. They may have tried at least one or two companies and may have recommendations either way. 

Look online. Online reviews are another way to find a good company. However, it is important to remember that not every company is going to be a good fit. One person can't please everyone, so you should expect a few bad reviews. You may also want to remember that people are more likely to leave reviews when they are unsatisfied, then when they are happy. 

Make a list of your wants and needs. Before you start looking for a property management company, you need to decide what you are looking for in a company. What tasks do you want them to do? Are they just going to collect rent, or do you want them to be the ones who will be on call when something goes wrong? Will you have your tenants contact them or you? Are you looking for someone to do repairs or just go see the problems and call the appropriate professional? You need to know exactly what you are looking for, before you start looking. Otherwise, you won't know if the company is right for you. 

When you are looking at a property management company, you will need to make sure that they will fit all of your needs. Some are better for smaller properties, while others specialize in larger properties. You also need to make sure that they will do whatever you want them to do. Are you going to want someone to be on call? Or are your tenants going to call you? Do you want someone who is going to fix the problem or figure out how to call in case of emergency? 

Flexible Pet Policies

 4 Business Reasons to Make Your Pet Policies at Your Rental Property More Flexible

Pets often have a bad reputation when it comes to allowing tenants to have them. However, there is a lot of value in having pet-friendly policies on your property that you may not have considered. This article will list some good business reasons to at least add some flexibility to your pet policies.

Longer Tenancy

Pet owners are more likely to stay in a rental longer. This is because they often have trouble finding another pet-friendly option that they can rent. Adopting a pet-friendly policy will likely increase your ability to keep tenants.

Able to Charge Higher Rent

If you have pet-friendly policies, you will have less competition around, as not all properties will have the same pet-friendly policies. This may allow you to get away with charging slightly higher rent, as tenants with pets will have fewer options when it comes to going elsewhere.

Larger Tenant Pool

About half of prospective renters own a pet, and that's a large share of people you are missing out on if your pet policies are restrictive. If you make your property pet friendly, you have the chance of nearly doubling the pool of tenants you have to choose from.

Happier Tenants

In a time where COVID-19 is running rampant and shutdowns are common, many people are finding themselves at home more often than ever. This could lead to stress or depression in many tenants, which may lead to issues with those tenants. Those issues could be fallout with other tenants, or sloppy living that could hurt the property's reputation. Having a pet around can help reduce the stress that the tenant is feeling, making them less likely to slide into depression should another lockdown come.

Changing the policies on pets in your properties isn't something that should be taken lightly or just shrugged off to the side. While there are a lot of negative stigmas that come with allowing pets on your properties, hopefully the upsides provided in this article allow you to have a clearer view on how it will affect you as a landlord.

Fire Protection for Rental Properties

 Ways to Protect Rental Properties in Areas at Risk for Forest Fires

Fire is a big concern when you are a landlord. It is even more concerning when you live in an area that deals with forest fires. If you aren't proactive, a wildfire could destroy your rental properties.

Here are some ways that you can protect your properties, all year long. 

Keep an eye on the risk. You should always be proactive when it comes to wildfires. Make sure that you check the risk of wildfire on a regular basis. If the risk gets high, make sure that you let your tenants know. 

Keep your homes and properties clear. You (or your tenants) should do everything possible to keep your property safe. Lawns need to be mowed and a weed eater should be used to keep unreachable areas short and less likely to catch on fire. You should remove any dead plants and vegetation. Trees should be kept trim so that they are not out of control. It is recommended that you keep trees at least ten feet apart so that they won't all go up in flames together. 

If the risk becomes high, it is time to take action. You (or your tenants) may want to run sprinklers and clean up any debris that could keep the fire going. You may also want to wet any decks and sidewalks so that they are less likely to catch on fire. Not only that, but you may want to purchase fire-retardant spray. When you soak your wood structures, they are less likely to catch on fire.

Invest in better siding and roof.  If you live in an area that is prone to wildfires, you should do everything that you can to protect your property. You shouldn't have wood shingles. It is best to have an asphalt, tile, or metal roof. For siding, you may want to change it from wood to a metal or vinyl siding, so it is more resistant to fires. 

If you own properties in a place that often has wildfires, you are going to want to make sure that you keep an eye on the risk. You should also make sure that your homes are kept mowed and cleaned. Extra debris should be cleaned regularly to that fire is less likely to move to your area. You may also want to invest in better siding and a new roof. Metal is best, though you may try something else (other than wood). 

Hiring a Property Manager

 Is Hiring a Property Management Company a Profitable Strategy?

Many property owners have their own thoughts and opinions regarding property management companies. Many see them as a luxury for landlords. However, there are definitely instances where a property management company is well worth it.  If you are newer to property ownership or have not taken the time to fully investigate the benefits of property management companies, here are a few things to consider when determining if using a property management company is a profitable strategy. 

As we approach the end of the year, this is a great time to sit down and check in on your rental income finances.  What are your gross revenues and what are your greatest expenses? Were your rental properties rented to their fullest capacity? Did you get the most income you could on your properties? As you consider where the shortfalls might have been in your strategy, now it's time to examine what types of benefits property management companies have to offer. 

• Marketing,  If you find that your property sat vacant for too many days this year, consider the outreach that a property management company can provide. Many companies provide a regional and sometimes national presence, ensuring high rates of  tenancy. 
• Distance. If you are not co-located with your rental property, many concerns or issues with tenants can remain unresolved. This can result in unpaid rent or disagreements with your tenants, resulting in high turnover.  Property management companies can provide a buffer between tenants and landlords. They can also find repair people quickly and at a fair price, avoiding such issues from ever arising.
• Vetting Renters. The process of vetting a renter can be time-consuming and costly. Many property management companies already have a rigorous process in place.
• Short Term Rentals. If you own a short-term rental property, property management companies can be involved as much or as little as needed. Many can do it all, but if you prefer to be the one to give the access codes to enter the property, you can request this. 

Many property management companies take a percentage of the gross revenue as a fee, while others have a set fee. Before hiring a property management company, determine where your needs lie, how this particular company can help and what it will cost you in the end. The profits may be huge.  

Pet Policies

 5 REASONS TO UPDATE YOUR PET-POLICY

Quarantine changed how the world celebrates, communicates, eats, shops, works, and even lives. With more tenants blending work and home, now is the perfect time to update your contract, especially your pet policy. It could be the change that pushes your rental property through this post-quarantine slump. Read on for five incentives to update your pet policy or remove it altogether.

# 1: PETS CAN EXPONENTIALLY EXPAND YOUR CLIENT BASE

Currently, tenant trends show that more people are working from home. So high-end properties, once coveted simply for their prime location, are being deserted for cheaper, more spacious properties further into or outside the city where pet ownership is often encouraged. Also, families that currently own pets are downsizing and looking to keep their furry family members. Allowing pets would attract this market to your property. 

#2: PROVIDES AN ALTERNATIVE FORM OF SECURITY

Single parents, single females, and the elderly are tenant groups that often look for security features when choosing a home. Allowing larger breeds of dogs offers these tenants an alternative form of security besides keeping firearms in their homes.

#3: INCLUDES TENANTS WITH AN EMOTIONAL SUPPORT PET

Support pets have become widely recognized as an efficient method of treating some psychological disorders. Allowing pets could mean a better quality of life for tenants prescribed pet therapy. It also joins your brand in the fight against negative mental health stigmas. 

#4: PETS CAN BE NATURAL RODENT DETERRENTS

Pets around the home often deter common rodents and pests like mice and cockroaches. Pets also help lower the number of rodent sightings reported throughout the year.

#5: PROVIDES AN OPPORTUNITY FOR OVERDUE RATE ADJUSTMENTS 

Most tenants are reluctant to accept rate increases when the amenities have not increased. Rising rent prices have forced many long-term renters to consider buying. Renters would rather pay higher rates for a mortgage in exchange for future land ownership and instant freedoms, like getting a pet. Changing your pet policy to accommodate these applicants could attract even more qualified tenants. 

It's time to reevaluate if your current pet policy is still serving you. Not only are people spending more time with their pets at home, but more renters are also looking to become pet owners for comfort, safety, and companionship. Rules regarding maintenance and security deposits will need to be revised to cover any liabilities or damages incurred during the tenant's lease. However, it could be the one renovation that brings your desired rental pool within reach.

Budgeting Amidst an Eviction Moratorium

 Landlords: How to Budget During an Eviction Moratorium

Not only are tenants struggling to pay their bills, their landlords are facing the same problems. They are not allowed to evict those who can't afford to pay rent due to unemployment, yet they aren't bringing in the monthly rent like they used to. Even worse, some of these landlords are unemployed also, making it even harder to pay their bills. 

However, we will get through this, like others have before. So, what can you do to budget during this difficult time? 

Focus on the necessities. Some plans, like remodeling the bathrooms, can be put on hold. Instead, focus on paying the mortgage and other bills that are necessary. Fix what needs to be fixed immediately, such as leaky faucets, and leave some of the other less pressing things to the side (until your income is back up). 

Cut back on certain things. You may also have to cut back on certain things to help with the costs. If you are paying the cable bill for the whole building, can you find a smaller package until things turn around. If you give gifts to your tenants, can you make some small gifts instead? All of these little things can add up quickly! 

Do more work yourself. If you are at all handy (or maybe not at all), you may want to think about trying to do some of the things around the place yourself. Instead of hiring someone to mow the lawn, you should have plenty of time to do it yourself. Do you have a plumbing problem that needs to be taken care of? Watch a YouTube video and see if you can handle it! 

Though others may not realize it, as a landlord, you may also be struggling. You have to find ways to stretch your money. To do this, you need to focus on taking care of the most important things, such as your mortgage and other bills. You may need to cut back on other things. You may also need to do more things around your building yourself. This can really save you a lot of money in labor, making it worth the extra time it takes you! 

Long-Term Strategies for Keeping Rodents Away From Your Rental Properties

No one wants to rent or live in an apartment that's infested with rats. Unfortunately, with highly visible review platforms online, even a single, short-term rodent problem can diminish the long-term marketability of your units. The good news is that there are three easy ways to keep these pests at bay, even when neighboring buildings are riddled with them.

1. Hire a Property Management Service

If you don't live onsite and aren't able to regularly maintain the grounds yourself, consider hiring a property management company. Although you may have fastidious tenants, rubbish that's left in common areas by guests, residents, and passersby is guaranteed to attract animals. The maintenance teams that property management companies dispatch can take ongoing preventative measures such as:

• Patching up holes in building materials and other points of ingress
• Eliminating standing bodies of water or other accessible water sources
• Trimming, pruning, and limbing onsite trees and shrubs to remove hiding areas and living spaces
• Making sure that all outside waste collection areas are clean and securely closed

With property managers handling these and other aspects of your building operations, pest problems of any type are far less likely to crop up. Best of all, management companies work hard to attract desirable tenants. With these professionals screening new applicants, you're more apt to units to people who actually care about their surroundings.

2. Hire a Pest Control Service

Pest extermination and pest control are two vastly different things. Unlike bed bugs and certain species of cockroaches, rats and rodents naturally thrive in the outside environment. Pests like rodents, termites, and ants aren't necessarily brought into buildings. Instead, they're attracted to interior living spaces by inviting property conditions. Pest control is everything that you or an outside party does to deter local inspections and animals from entering your building. Rather than being reactive like pest extermination, pest control or pest management is largely preventative in nature. It's also much cheaper than treating residential units after an infestation has already arrived.

3. Clean Out All Storage Units

If you have storage units onsite, schedule an annual or twice-annual cleaning. Rodents are just as happy munching on non-food items as they are rifling through pantries. They'll eat just about anything organic that they can get their hands on, and they're content to build their homes in empty boxes, collections of old newspapers, and in many other things that are commonly housed in onsite storage units.

Remember, even a single problem with rodents can have a terrible and long-lasting impact on the reputation of your rental property. Taking proactive steps to prevent rodent infestations is always the cheapest course of action. With the tips above, you can eliminate all of the features that are known to invite these unwanted guests in.

Capital Gains and Estate in 2021

Capital Gains and Estate in 2021: Everything You Need to Know:

Capital gains are the taxes you pay after gaining wealth from selling assets that have appreciated (gained value) over time. These assets subject to capital gain taxes include stock, real estate, crypto currencies, and businesses. The capital gains taxes are required to be paid on the profit that you made on the sale. For example, if you invest $5,000 and the return is $5,500, you have to pay capital gains tax on the $500 profit.

Today we are discussing the capital gains taxes that you have to pay on your profits from real estate. 

What Are the Different Types of Gains Taxes?

You have both short-term and long-term gains taxes that can be owed on real estate. The differences between the two types of capital gains tax are the following:

• Short-Term Capital Tax Gains: Short-term capital tax gains are the taxes you pay on your profits from real estate within six months of selling the real estate for profit. For example, if you purchased a rental property and sold it four or five months later, you would owe short-term capital estate taxes on that property.
• Long-Term Capital Tax Gains: Long-term capital tax gains are the taxes you pay on your profits from real estate within six months of selling the real estate for profit. For example, if you purchased a rental property and sold it five years later, you would owe long-term capital estate taxes on that property. 

It's worth noting that the long-term capital gains taxes are usually available at a lower rate than the short-term capital gains tax.

How Are the Federal Rates of Capital Gains Taxes Determined?

Gains taxes are largely determined by the amount of income that you make. These rates are also the same as the seven (7) tax brackets used to file your federal tax returns with the IRS on an annual basis. This means that the more you make, the higher your tax rate will be on capital gains taxes. Capital Gains Tax rates vary from 10% for the lowest income level, $9,950.00 annually for a single person, or up to $19,900 for a couple filing jointly. The highest level of taxation for capital gains is 37% for those who make over $523,000 annually as an individual or over $628,300 as a joint couple.

In all, there are seven (7) different taxation brackets that capital gains taxes can fall within.

How Are the State Rates of Capital Gains Taxes Determined?

Yes, different states have different laws about capital gains tax rates on both short and long-term capital gains.  These capital gains tax rates are usually the same as your state income tax levels. Many states tax capital gains taxes as additional income or as income tax for your family. That means that the rates for capital gains taxes in different states vary by state, and some states do not tax capital gains (or state income taxes at all). 

Conclusions:

It's important to understand what the federal and local capital gains tax rates are for both long and short-term investments. Paying your capital gains taxes on real estate (or any other investment for that matter) is crucial to keep you in good standing with the IRS yearly.

1031 Exchanges

 

Two Key Strategies Using 1031 Exchanges for New Real Estate Investors:

Using 1031 strategies can be challenging as they have quite a few moving parts. Still, they can also greatly benefit real estate investors when increasing their net worth, business, and property profile. Meeting the rules of 1031 is important. Otherwise, your "property swap" won't qualify for the 1031 deal, and you will have to pay the full taxes on the sales rather than paying the few to no taxes that you pay when you meet the requirements of 1031.

Keep in mind that to qualify for 1031, both properties involved in the deal must be located inside the United States. The properties are also usually similar in nature to qualify for 1031.

The following are two key ways a real estate investor can use 1031 exchanges to help them grow their business and property profile:

Use 1031 For A Vacation Home:

Sometimes taxpayers use the 1031 exchange to trade vacation homes. Later, the person sells their current residence and moves into the vacation home. Then, they can make it their primary residence and eventually sell it using their $500,000 capital-gain exclusion. The exclusion lets you sell your home along with your spouse and protect your $500,000 in capital gain if you have lived primarily in that residence for at least two of the last five years.  

Many other investors rent out their vacation property for six months or a year before exchanging their current property for a new one.

Move Into a 1031 Swap Residence:

Many times, people swap their homes for a new second or primary residence. You can't move into these residences right away. The "harbor rule" set forth by the IRS requires you to a) rent the unit out to another person for a fair rental for 14 or more days or b) your own personal use of the property cannot exceed 14 days or 10% of the time for the first 12 months after the swap or trade. 

Conclusions: 

Whether you want to use the 1031 exchange to swap vacation homes or move into a new residence, the 1031 exchange is a great way to build on your current wealth and continue your current wealth. You have to be sure that you are following the appropriate rules of all the 1031 exchange, or you will end up having to pay additional taxes to the IRS that you didn't want to owe. Then you lose the advantage of the 1031 exchange deal. 

FHA Loans

 FHA Loans: Do I Use It to Buy a Property Now vs. Buying a Property In a Year?

FHA Loans: Do I Use It to Buy a Property Now vs. Buying a Property In a Year?:

When you want to become an investor by purchasing additional homes to rent, you have many options to consider when finding funding to purchase those properties. One option is considering an FHA Loan to purchase investment properties now versus waiting to buy an investment home in the future.

In this post, we will examine both the pros and cons of taking an FHA loan to buy an investment property now versus waiting a year to save up your own money to purchase a property: 

Pros of Using an FHA Loan to Purchase Investment Property:

The following are some pros to using an FHA loan to purchase a rental property and how you can do it:

• FHA loans only need a 3.5% down payment to purchase a property, making purchasing an investment property much more affordable for most average investors. You are likely to qualify for an FHA loan before a traditional loan.
• No income minimums have to be met to qualify for a loan.
• Only a 580 credit score is needed to qualify for an FHA loan to qualify for loan.
• Rentals can be anywhere between a single-family home and a 4-plex if purchased with an FHA loan.
• There is an additional loan amount allowed for each unit purchased past one individual residence.
• Income from the FHA loan on the first investment property you purchase can help you purchase your next investment property in the future.
• If you refinance your mortgage, you can often get rid of the mortgage insurance required to carry on a home purchased with an FHA loan to save money in the future.
• Closing costs can be bundled with your mortgage to require less cash for your initial purchase, which means that you can afford to buy an investment property sooner.

These are some great reasons to consider an FHA loan to purchase a rental property.

Cons of Using an FHA Loan to Purchase Investment Property:

The following are some cons to consider when using an FHA loan to purchase a rental property and how you can do it:

• You have to make the new property your primary residence for a minimum of 12 months (one year) before you can use it as a rental property for income purposes. (You would have to move into the new property you purchased and rent out your current residence if you get an FHA loan for your investment property).
• You will have to pay mortgage insurance on the property for the first 10 years unless you refinance to get rid of the mortgage insurance on the rental property you purchase.
• Unless you live under special circumstances, you will generally only be allowed to have one mortgage loan at a time, limiting how many rental properties you can have.
• The property you purchase is nationally capped in the US at $822,375, with additional allowances for each additional unit in the building you buy. Your multifamily properties are capped at 4 units per loan.

You have to consider these limits when using an FHA loan to purchase an investment property. 

Conclusions:

FHA loans can be a great way to help you get an investment property to help you increase your income. If you can get a multi-unit property, you will rent out more units and increase your income even faster, as you will have more than one tenant. 

Real Estate Investing and Inventory Recovery

Investing in Real Estate: Should You Wait to Buy a Rental Property Until Inventory Recovers?

There has been an increase in school-at-home and work-at-home situations that have made our houses even more negligible or somehow less functional. However, homeowners looking to augment their learning and working spaces have limited choices because there just aren't many houses on the market. 

According to Black Knight, this year's housing inventory is staggeringly low as of April, with 53% fewer homes on the market and a deficit of nearly 750,000 available-for-sale homes compared to a similar time frame in 2020.

So, What Does This Mean to Today's Buyers?

Limited housing inventory has several implications. First, it's progressively increasing home prices. When a particular commodity tends to be short in supply, its demand rises, increasing its price tag. That's also the case for today's homes. In February, the average sales price for a single-family home rose by approximately 16% from the previous year, and while mortgage rates are modest, they're still not low enough to help offset high prices of homes.

Limited housing inventory also means that buyers may have to accept properties that are not in line with their desires. That could mean compromising on layout, proximity to amenities, outdoor space, or square footage. 

All of this boils down to the question, is buying a home today worth it? Or should you sit tight until inventory recovers?

Buy Now or Wait Until Inventory Opens Up?

One of the major causes of low housing inventory is that sellers have been hesitant to list their property during the ongoing pandemic. While most of that cuts to health-related consequences of inviting strangers indoors for showings and open houses, it's also a result of avoiding any significant moves during a period of extreme recession. 

But as vaccines are given out on a widespread level, we should see housing inventory opening up sometimes later. More people may decide to list their homes once the economy starts to recover and the pandemic begins to improve, hence more inventory to choose from and at a lower price. There's also a good chance mortgage rates will most likely remain stable throughout the year. As such, it could pay for buyers to hold on till housing inventory opens up in the subsequent months. 

Another thing buyers should keep in mind is that, generally, more homes are listed during the spring and summer than during the winter months. That means inventory may pick up this month as it naturally does, then, as from July, prices may start to drop as the market opens up. 

However, buyers who find homes of their choice and can afford them don't have to wait to make an offer, especially while mortgage rates are still attractive. But for anyone who's struggled in the past months may want to back down from their home search and wait things out. 

On that note

Purchasing a home where housing inventory is extremely low is such a hectic and stressful process, especially with all the uncertainty caused by the pandemic. As such, choosing whether or not to invest in rental property is a difficult choice. 

To make your work easier, contact Michael Leafer to find your first rental property or receive short-term lending/funding to rehab your rental property. Great deals are always available on Michael.   

How to Venture into Real Estate with a Bad Credit Score

A good credit score is one of the most valuable assets of any potential real estate investor. Luckily, you can still invest in real estate with a bad credit score by various means. Before looking at how you can invest in real estate with a bad credit score, let's look at the different types of credit scores.

Credit Score Ranges

A credit score is a three-digit number representing your likelihood to pay bills on time. There are many ways of determining credit scores. For instance, Fair Isaac Corporation (FICO) outlines credit ranges as follows:

• 800+ - Exceptional
• 799-740 – Very good
• 739-670 – Good
• 669-580 – Fair
• 579 and below – Poor

If you fall under the fair or poor category, you can still work on your credit score and improve it with time.

Can You Invest In Real Estate With Bad Credit?

As mentioned above, you can invest in real estate with bad credit using other means. These include the following.

Hard Money

Hard money lenders consist of businesses and individuals who offer short-term money with high interest rates to real estate investors. They do not focus too much on your credit score but the actual property you want to buy. Such lenders want to know if they can still profit from that property if you default on your payment.

Wholesaling

Wholesaling involves getting a house from someone interested in selling the home on contract. You then take the contract to a real estate investor, sell the house at a higher price, and keep the difference.

Private Money

Like hard money, private money lenders don't focus so much on your credit score but on the quality of the property you want to purchase. Private money loans can be from anyone, ranging from a family member to a friend or acquaintance.

Even though it is always advisable to maintain a high credit score, you should not let your bad credit hinder you from venturing into real estate.

Investing in Real Estate with a Low Credit Score

Property ownership is often seen as a path to future wealth. However, for those with low credit scores, the ability to secure loans at reasonable rates can be an impediment to entering the market. In some cases, a bad credit score may disqualify you right out of the gate. This article will focus on alternative ways to secure funding and start your path to ownership of investment properties. 

Crowdfunding

If you are serious about investing in property, you can always turn to friends and family for financial backing. While you may not have the funds you need at your disposal, you may have the muscle or business savvy to manage the property. By offering to be the handyman and/or property manager of the property, you are providing a valuable service at little to no cost to your investors. Create a business plan for your investors that includes your proposed "sweat equity" and a positive cash flow to your investors.

Hard Money Lenders

Hard money lenders, similar to crowdfunding, is a group of individuals or private investors who provide financial backing. Unlike friends and family, they may require a hard asset in return for their financial support. The terms of these types of loans vary based on the agreement between borrower and lender. These types of loans are considered risky for both parties.

 Distressed or Foreclosed Properties

If bad credit is an obstacle that is too difficult to overcome, consider buying a distressed or foreclosed property. Buying a property outright avoids the issue of bad credit. However, these types of purchases don't come without their own set of risks. While the purchase price may be minimal, buyers should do their homework to determine if there are any liens against the property, how much it will realistically cost to fix and if they have enough cash on hand to close the deal. 

If you have bad credit, don't let it be an obstacle to investing in a property. Design a plan for how you intend to purchase, rehab and maintain that property in the long run. 

Reevaluating Rental Rates

There are many factors that influence the right rental rate for a home. The value of the neighborhood and the home's assessed property value may go up. Increased demand and increased maintenance costs factor into the rent you expect for a property. When property values go up, so too must the rent. So how do you reevaluate your rental rate and raise the rent based on rising housing prices?

 

Calculating Rental Rate by Home Value

Start with the 1% rule. A home's monthly rent should equal between 0.8 and 1.1% of the home's value, or around 1% as a rule of thumb. For example, a $250,000 home is likely to rent around $2,500 per month. If the home value goes up, you can re-evaluate rent based on 1% of the new value.

 

Keeping Pace with Neighborhood Rates

Don't forget to keep track of the other rental rates in the neighborhood. It's important to stay competitive, asking a comparable amount for your home without being the highest or lowest price in each housing area. Stay aware of the rental prices for other homes in your neighborhood and section of the city.

 

Rental Rate Restrictions

There may be local or building-specific restrictions on raising the rent. Become familiar with local rental laws and policies. Make sure that any current tenants are not protected from normal rental practices like fixed-rent homes. Most of the time, property owners can raise the rent as property values change, but there are sometimes legal restrictions.

 

Listing at the New Rental Rate

If property values have risen since your last tenant, you can list the new rental vacancy at the higher price. Between tenants is the easiest way to raise the rent because it bothers noones routine or planned budget. Simply spruce up the house during your usual tenant turnover process, take a new batch of flattering photos, and list at the now-higher local rental rate.

 

Raise the Rent Gradually with Existing Tenants

IF you do have current tenants, raise the rent gradually. You cannot legally change the rent amount during the term of a lease, you'll need to raise the rent when the next lease is renewed. Do not surprise your tenants with a rent increase. Warn them several months ahead of time and don't add more than $100 to the monthly rent each year. You can also write a rent increase acclimation plan for the next lease to help your tenants adapt to the increased housing expense.

 

Property values rising in your area? We can help you determine the correct new rental rate and put it into action. Contact us today to consult on your rental portfolio.

Negotiating in a Crowded Market

The real estate market is hot right now. This is good for sellers because they can list their home and have it sold within a few days or weeks. That being said, buyers are struggling with all of the competition. Many homes are getting multiple offers due to the current market, making it hard for anyone to buy a house. This is even true for those who are looking to invest in real estate. 

However, it doesn't' have to be this way. Here are some ways you can beat out others when trying to buy a home to flip. 

Be prepared to spend a little more on a house. Because there is so much competition right now, you aren't going to be able to start with a low-ball offer. You may even end up spending more than asking price to get the house that you want to invest in. 

Go for the homes that aren't in the best shape. Good homes that are priced right are the ones that are selling right away. Some of the other ones that may have some cosmetic problems (or even something a little more serious) are the only ones that are sitting around. For this reason, you may have to buy a house that needs a little bit more work, in order to get a fair price. 

Skip home inspections. If you are going to fix a house up to sell, chances are that you have your own home inspector or contractor to help you figure out what you need to do when you buy a house. For this reason, you may be able to skip the house inspections, which may just make your offer more desirable than all of the ones that won't buy a home without an inspection. 

In this market, you are going to have to be prepared to spend a little more money and buy a house that isn't in as good shape if you want to find one to invest in. You may even have to skip inspections if you are serious about winning the contract. 

 

How do I know if a Property Will Make a Good Airbnb?

 

Many people want to know if the property they are buying would make a good Airbnb property. However, just because you purchased a property doesn't mean you can start renting it out for premium Airbnb rates. There are a variety of characteristics that will make a property a lucrative Airbnb. If you understand what people want in an Airbnb, you are more likely to purchase a property that will serve your purpose as a property that demands top dollar as an Airbnb rental property.

The following are the key items that tourist say they want when they are looking for an Airbnb rental:

Choose a Popular Location:

Location is the most important factor in determining if you have a successful Airbnb rental property. You want to choose a location where people are going to be looking for a place to stay. Popular tourist and vacation destinations make a great place to purchase an Airbnb property. Near beaches or in the area where Disneyland or Disney World are located are great choices. Other hotspots like Florida or Hawaii are also great options. The most popular city for Airbnb properties in the city of San Francisco. 

Most large metropolitan areas tend to rent well and are worth your investment in an Airbnb property if it's located in the right area and near main attractions.

Offer Outdoor Spaces:

When choosing Airbnb properties, especially in warmer climates, consider purchasing a property that offers guests outdoor space to gather. Many guests will wish to spend time outside, whether they have a yard, a pool, or just a deck area where they can gather. Summer is a popular vacation time, and the outdoors are popular, especially in warmer climates like Florida or California. A property with outdoor space can be even more appealing to guests.

Consider Sleeping Arrangements:

Choosing a property that can accommodate more guests can attract larger families or groups to your property. Being able to accommodate larger groups allows you to appeal to more clients, increasing your chances of booking your Airbnb and doing more business (thus making more money on your investment).

Consider Allowing Pets:

If you are looking to rent your Airbnb out to families or parties, many will wish to bring a pet or two along to enjoy their trip. Being a pet-friendly location for cats or dogs will attract pet owners to stay at your property. Charging a small (potentially refundable) fee for pets to stay at the property with guests can help mitigate the risk you take allowing pets (who could potentially make messes) to stay at your rental.

Clean Thoroughly After Each Guest:

Be sure to clean the property thoroughly between guests. From providing fresh towels and bed linens to ensuring the kitchen and bathroom are free from signs of previous guests, clean living quarters are essential to attracting good reviews and more paying customers. The effort you put into keeping the property clean now will pay dividends (literally) in the future.

Charging a Fair Price:

Knowing the market prices for an Airbnb rental in the city where your rental is located is key. IF you charge too little, you are missing out on the profit you could make. IF you charge too much, you will lose business to other nearby properties where the prices are fairer. The prices can change seasonally, so you may need to adjust your prices throughout the year to stay profitable and competitive with surrounding properties.

Be a Considerate Host:

Accommodating the needs of your guest is critical to good reviews and repeat business. No matter how nice the property you have is, the reviews that people leave will reflect it if you are a lousy host. Being considerate as a host is as simple as responding to inquiries quickly, offering a reasonable cancellation policy, or even saying "please" and "thank you." Being accommodating to those who keep you in business can go a long way in making you a successful Airbnb investor.

Conclusion:

In the end, you want to offer a good, clean, safe place for guests to stay at a price that is affordable to the client. It's recommended to focus on larger metropolitan areas or a home near a large attraction like an amusement park or beach if you want the property to rent well.

Being a good host is just as important as offering a property in an attractive location where people want to visit. As you build more positive reviews, more people will want to stay at your rental properties.

What's the Return on Investment when Updating Option Features in Rental Homes?

As a landlord, there is a constant pull on the purse strings as to where to invest your money. While there are sometimes things that need your immediate attention, like a broken dishwasher or a leaky pipe, new renters are looking for updated amenities to help justify the rental price. If you are thinking about making your rental unit stand out to potential renters, here are two things that you can invest in and be sure to secure a good return on your investment.

Full or Partially Furnished

For new grads, or those starting over after a life-changing event, having a new place and new furnishings can help ease the transition to a big move. For long-term rentals, a furnished or partially furnished apartment can command up to 15-20% more in rent. (Short-term rentals can bring in up to 50% ). Keep in mind, this optional feature doesn't come without its lists of pros and cons. While you may have to replace items due to natural wear and tear, you can also deduct a portion of the costs from your taxes. 

In Unit Laundry

Renters are always looking for an amenity that will make their life easier. Having an in-unit laundry means not having to take your laundry elsewhere to get it done. It also saves time. According to the National Apartment Association, adding a washer and dryer unit can increase your rental income by 15%.

In 2017, the National Apartment Association produced a publication entitled, " Adding Value in the Age of Amenity Wars." This document is a great resource to help you determine if things like adding higher-end kitchen appliances are worth the investment or do ceiling fans make a difference?  It is always good to know how much of an impact a seemingly small change can make on your investment property.

Single Family Home vs. Duplex Repairs + Notices

 

Duplexes are multi-family homes with two units standing in one building. The duplex could either be a two-story building with one front yard, or the units could stand side by side, sharing a wall. 

On the other hand, a single-family home is built on a separate property and is not attached to any other building. Both single-family homes and duplexes need maintenance, and here is what you should know about repairs and notices.

Single-Family Home Repairs

While you will enjoy the privacy that comes with single-family homes, a damaged home could mean spending a large amount of your income on repairs or getting a loan. Repairs can be complicated and expensive. With no one to share the cost with, you might use up all your savings. 

Duplex Repairs

Most duplex owners own the entire building, living in one half and renting the other one. In this case, going about repairs is not complicated as the owner will handle them unless stated otherwise by the lease terms. The owner could also decide that the client renting the other side of the duplex should take responsibility of all repairs on that side and give a notice of repairs, if any, depending on the lease terms.

However, if two people own both sides of the duplex independently, how should the repair and damage expenses be split? Anything that involves money could be contentious, which is why splitting any repair bills in half should be in writing. Contacting legal professionals from the start can help stipulate how the repairs should be handled, especially those involving both sides.

Single Family Home Repairs Versus Duplex Repairs

When living in a single-family home, ensure you have enough wiggle room in your budget to handle all sorts of repairs and notices yourself, unlike in a duplex where you can share the costs with the other party. 

While it sounds cheaper to own and repair a duplex than a single-family home, sharing costs can be complicated and could sometimes require the law to intervene.

You can learn more about single-family homes and duplexes here. Feel free to follow us on social media and contact us if you have any questions.  At Leaf Management, we can help you handle any repairs and notices effectively.

Property Management + Tax Deductions

 Why Property Management Fee Is a Tax-Deductible Expense

When you own a rental property, the responsibilities include purchasing monthly rent and paying the required building expenses. You are also supposed to screen prospective tenants, maintain the property as per the law and address any complaint. Managing a rental property is a tedious job. Consequently, it would be best to hire a property manager.  In case you opt to hire one, this is automatically an added expense, but it also qualifies for legitimate deduction when paying your taxes.

Rental Property Deduction

There are numerous categories for rental properties. In most cases, some deductions are in full cost expense, and others depreciate over time like capital improvements.  Some maintenance expenses are categorized as full cost expenses: repairing broken windows and patching walls.  Capital expenses refer to those that enhance the value of your home. Moreover, the state should write off full administrative expenses such as hiring a property management and advertising your property.

Schedule E

On this schedule, you are supposed to report your rental income, expenses, and depreciation.  In case you have numerous properties, you can file more than one schedule to document all the properties you own. Eventually, you should add the totals and list them on a single form. In case you had hired property management services, you should deduct their expenses on this form.

Schedule C

In case you offer laundry services, maid service, or regular house cleaning, you should file Schedule C. If you had contracted a property management service to provide these essential services, you should deduct those expenses from Schedule C.

Property management services expenses are tax-deductible.  Nevertheless, to claim the entire cost of services, you should safely keep statements and invoices from the property management company. Such documents are evidence that makes the tax deduction eligible. Ultimately, hiring a property manager will make your work easier and offer you a few tax advantages.

How Often Should You Visit Your Properties?

 

With Property Managers, When is Visiting Your Property Too Much?

Inspecting your property is essential and a personal decision depending on the kind of property you are renting, the type of tenants you attract and the type of relationship you want to establish with your tenant. Property inspections will help you assess the home's condition and manage any repairs early enough to avoid extra costs.

Depending on your preferences, you may want to watch your property closely, even when you have a property management service, or may prefer to be hands-off, especially when you are renting a property in another state. Read on to learn how to handle your rental investment properties.

How Often Is Enough? 

A couple of early visits help you know the kind of tenants living on your property. Mismanaged property inspections could irritate the tenants, and the last thing you and the property managers want to do is get rid of responsible tenants. In most cases, rental property inspections happen once every sixteen weeks, translating to about three times a year. 

Even when you have property managers that could inspect your property, you should visit the home occupants at least twice a year.  Ensure you inspect your property during a scheduled visit with your property manager and notify the tenants, preferably one week in advance, that you will be inspecting the home.

The Hands-Off Approach

If you prefer having no relationship with your tenants or have rental property investments in another state, property management services are perfect for you. Depending on the depth of services you are paying for, the property inspectors will give you details of your home after every inspection. 

The type of contract you have with your property managers will determine how they handle repair issues and home improvements where necessary. Good property inspectors will give you comprehensive information and send you pictures of the home.

It is advisable to state how you or the property management service will carry out the home inspection in the lease agreement. At Leaf Management, you will learn more about property visits and inspections. Follow us on social media, and we will answer all your questions.

Single-Family Home vs. Duplex

Investing in real estate is a great mechanism to diversify investments. Nonetheless, it is suitable for real estate investors to be familiar with managing different types of houses. Such information will help you make well-informed decisions and handle their obligations perfectly. Let's look at what it will take to manage a single-family home vs. a duplex in terms of repairs and notices.

Difference Between a Single-Family House and a Duplex

The main difference between the two is in a duplex; two homes can be located side by side or on top of each other. They are joined together by a single wall. In contrast, a single-family is one stand-alone house that is not adjoined to another house.

Repairs for a single-family house vs. a duplex

For a single house, the homeowner you have the responsibility to repair and maintain the house. In most cases, you will be responsible for repairing leaky showers, broken-down furnaces, broken windows, or other things that may affect the tenant's comfortability. Moreover, you are responsible for maintaining the outdoor: trimming grass, shoveling walkways, removing debris, and other activities that will enhance the tenant's safety.

On the other hand, if you own a duplex, you should repair the two homes'. That will cost you more.

Single-Family House vs. Duplex Repair Notices

 It will be easier to communicate with your tenant for repairs in a single-family house since it is a single-family. But for duplex it might be a bit challenging especially when different families live in the two places. You have to organize repairs for the two homes to avoid hiring repair experts twice, which will cost you more. Also, you have to give them notices in advance to avoid inconveniences. But no matter the case, it will cost you more when managing a duplex than a single-family home. Nonetheless, a duplex has more financial gain than a single-family house.

How Property Management Fees Figure Into Your Business Taxes

Whether you are an experienced landlord or just getting started, thinking about your taxes can be a huge hassle. It is important that you are ready when the time comes so that you can quickly and easily get your taxes completed. 

Are property management fees deductible on your taxes? 

Any property management fees are deductible when it comes to your taxes. They are classified as business expenses and should be treated as such. 

What do you need to keep track of for your taxes? 

If you don't have a property manager, you are going to need to save all of your receipts for everything that you do for your rental building. This may include: 

• Office equipment. This includes your computer, printer, and phone. If you buy some furniture, that is also deductible. 
• Maintenance work. You can deduct your lawn mower, plow (for the snow), light bulbs that you replace, and the filters for any air conditioning and heating units. If you hire someone to do outside maintenance or plow the parking lot, that is deductible too! 
• Repair work. You can write off all of the tools and equipment that you need to repair any plumbing or other work that needs to be done around the building. Any appliances that need to be fixed or repaired can also be included in this. 

Why is it easier to hire a property manager than trying to do it yourself (when it comes to your paperwork)? 

For most people, it is much easier to keep track of their monthly (or yearly) property management fees than it is to keep track of every little thing that they use to do the job. Even if you get a bill for each project that they do, it is still a whole lot easier than keeping all of your receipts and keeping track of it that way! 

If you are serious about being a landlord and want to make money doing so, you might want to consider hiring a property manager. He or she will do all of the work (or whatever is agreed upon). It is also easier when it comes to your taxes. You just keep those receipts, instead of the hundreds that you have if you try to do it all yourself! Make your life a little easier by hiring someone to help. You will be glad that you did! 

How Often To Schedule Property Inspections

Inspecting your rented property is an important way to check on its condition throughout the tenants' lease. It offers you a chance to address small maintenance and repair issues before they become bigger, as well as a chance to make sure your tenants are satisfied.

Depending on the state, there are regulations on when and how, as the owner, you can access and inspect your rental property. This is important to preserve the tenant's privacy and ensure you're not exposed to unnecessary risk.

 

1. Show the Property to Potential Tenants or Buyers

When you decide to rent or sell your rental property, the law allows you to show the prospective buyers or tenants, but the entry condition is restricted. You are required to let the current tenant know your intent to rent or sell and give them a written notice in advance before the inspection.

 

2. Moving-in and Moving-Out Time

Moving-in inspection is to properly document the property's condition before you give it to the new tenant or owner. Moving-out inspection is done when the tenant moves out. The purpose is to determine changes to any condition or damage to the property during the tenancy. If any damage, determine how much it would cost to be offset by the security deposit as described in the lease agreement.

The move-in and move-out inspections are what you will use to compare property conditions.

 

3. Maintenance Purposes

Gain access to the property to perform maintenance, on the condition of providing notice, and enter at reasonable hours. When a tenant calls in for a service request, it's good for maintenance to take a look around and ask the tenants if there are other things you should be aware of. If you enter the rental property and the tenant is not at home, you have to leave evidence of entry.

 

How Often Should You Inspect Your Rental Property?

This will be spelled out in the lease agreement you have with your tenant. Most landlords conduct annual or semi-annual inspections. This ensures that maintenance teams can identify what's broken and needs fixing like the roof, drainage, HVAC, plumbing, electrical, etc.