Letting Tenants Run a Side Hustle From Your Property

 Should You Let Your Tenant Run a Side Hustle From Your Property?

Before allowing a tenant to run a side hustle from your property, knowing what you're getting yourself into is crucial. You also need to know the tenant's rights regarding running a business from home. 

Is it Illegal for a Tenant to Use a Residential Property for Business?

First, it's essential to note that there's a difference between occasionally working from home and basing the entire business on a residential property. Both approaches are legal, provided the property remains primarily residential. That's to say that no more than 40% of the property should be for commercial use. Most small businesses run from home offices, and it shouldn't be a problem for a tenant to use your property for business. 

However, your tenant should have confirmation in writing that you're happy to let them run their business from your property. Ensure you're confident of their intentions before permitting them. 

Factors to Consider Before Letting a Tenant Run Business from Your Property 

While you can allow a tenant to run a business from your property, many legal factors come into play. Running a business from a rental home has many risks and is likely to conflict the tenancy rules. Running a business instead of using the property for residency may also impact your landlord's insurance cover and make it void. 

Don't take the decision lightly, and don't grant permission until you carefully consider the following:
•    Does the council allow tenants to run businesses from residential properties?
•    Has the tenant got the relevant documents and insurance to run the business?
•    If you have a mortgage on the property, does the bank allow business operations on the property?
•    Does the Homeowners Association or any other corporate body that governs the property permit tenants to run businesses? 
•    Is the tenant aware that the landlord insurance doesn't extend to their business?

If you permit the business to run on your property, ensure you amend the rental agreement with a specific clause specifying that business insurance is the tenant's responsibility. They should agree to ensure the insurance remains current. 

Protesting Property Taxes

 

Effective Strategies To Protest Property Taxes for a Rental Property

As a homeowner, you may know how to protest property taxes on your primary residence, but how do you go about protesting the taxes on an investment property. This guide will help explain how you can effectively protest property taxes for rental properties.

How property taxes work for investment properties

To successfully protest property taxes on a rental property, you must first understand how the assessment of investment property works and what factors contribute to the total taxes you owe. Tax assessors typically base Real estate property taxes on the property's market value. They consider the size and features of your property and apply the tax rate set by your municipality to calculate your total property taxes.

You should also understand that investment property owners are not eligible for the same exemptions as owner-occupied homes, meaning the assessed value of your property is likely to be higher. For example, investment properties do not qualify for the homestead exemption, which allows you to lower your property taxes by capping the number of taxable value increases on your home.

Strategies for protesting investment property taxes

There are several strategies you can use to protest your investment property taxes. Below are the most common methods used by investors are:

1. Look for errors in the assessment

Often, an assessor may make mistakes when your property. Errors such as incorrectly measuring the square footage of your property, the plot size, or including inconsequential features are grounds for protesting your property tax. Therefore, if you believe the assessor has made an error, you can appeal the assessment and have your property taxes lowered accordingly.

2. Compare your assessment to comparable properties 

If you do not believe the assessor has made an error, you can still protest your assessment by comparing it to similar properties in your area. This process is known as a market value analysis. To do a market value analysis, you will need to find comparable properties recently sold in your area. Once you have found these properties, you can compare them to your property to see if your assessment is fair. 

3. Is the assessment reasonable

The most crucial factor in a property tax appeal is whether the assessment is reasonable. Therefore, if it is unreasonable and the value exaggerated, you have grounds to protest the property tax.

4. Gather evidence to support your case

Once you have decided on the best strategy for your appeal, you will need to gather evidence to support your case. The evidence may include recent sales data for comparable properties, property tax bills, photographs, or appraisals. 

Seek professional support

Protesting your property taxes can be a complex and time-consuming process. If you do not have the time or resources to protest your property taxes, you can always hire a professional firm to do it for you.  A professional will have the experience and knowledge to negotiate effectively on your behalf and get your property taxes reduced. 

Rolling Blackouts

 Keeping your Property and Your Tenants Protected From Rolling Blackouts

During the summer months, the days get very hot which puts a large strain on the power grid virtually everywhere. But in many places, the strain on the grid can lead to a rolling blackout. While this reality is one that both tenants and property owners must deal with, the process can be a little easier with some pre-planning. The following are ways you can better prepare your tenants and your property for summer blackouts. 

Install a Smart Thermostat

This is a win-win for everyone involved. Smart thermostats automatically adjust the temperature based on your personal habits over time. When no one is home, the temperature adjusts to something less strenuous on the power grid and also the electric bill. Smart thermostats have become more affordable, and they are also a desirable amenity for renters these days. 

Keep Freezer Full

Freezers that are full can keep contents cold for up to two days! Educating your tenants to move essential perishable foods into the freezer immediately during a blackout could be a useful tool to minimize the loss of food. It can also keep most of the frozen food useable, saving big money at the grocery store. 

Know Your Insurance Policy

Some insurance policies will allow claims on the loss of perishable food during blackouts. Some policies will not cover any damage due to a blackout. Knowing your policy and knowing the first point of contact right after a blackout occurs is very important. 

Establish Rules Concerning Generators

A generator can be useful during a blackout, but too often, people try to move the generator indoors, which is highly dangerous. Under no circumstances should a generator be allowed inside the property, and this should be spelled-out in your lease agreement if you live in an area prone to blackouts. 

Have your Electrical System Serviced 

Getting an annual check on your electrical system can be a useful tool to protecting your property. Make sure everything is in peak condition by having air conditioning units serviced, and your fuse box checked on an annual basis before it gets too hot. Technicians will have time in non-peak months, but trying to get them to check the system in the middle of the hottest part of the year, or right after a blackout could be next to impossible. 

Flooring Replacements

 Tips on How Often You Should Replace Different Flooring Materials

Many homeowners hardly know the best time to replace their flooring. Some follow strict remodeling rules, while others wait until a tile is missing or their hardwood floor gets warped to replace floors. You can always look for signs of wear, depending on the type of flooring in your home. This guide should help you.

Hardwood Floors

Wood floors are the best for the long haul. If well-maintained, they can last for 20-30 years. However, they're prone to water damage as wood expands when wet, and scratches and dents show easily. This is usually an excellent time to replace such floors.

Tile Floors

Tiles are great for kitchen and bathroom spaces because they're easy to waterproof and clean. Although tile floors are durable, they're prone to chipping and cracking, which creates a safety hazard if the grout comes loose. A significant advantage of tiled floors is that you don't have to replace the entire flooring. You can change the chipped tiles to give your floors a new look.

Carpet Floors 

Carpets come in handy for homeowners looking for affordable and comfortable flooring. The synthetic fibers create a soft surface to walk on, and modern rugs are made of nylon or polyester fibers, which are stain-resistant and durable. Carpet floors may last 7-10 years, but if they look stained and worn out, it is time to replace them.

Vinyl Flooring

Vinyl is an excellent alternative to stone floors. It doesn't need regular resealing and provides a more comfortable surface to walk on. Vinyl floors are also waterproof, making them impervious to stains and spills. However, vinyl is a little more delicate than other floor types, and you need to be extra cautious when dragging heavy materials on the surface.

Laminate Floors

This durable flooring type lasts a decade or longer before a replacement becomes necessary. Moreover, technological advancements have improved its quality and thickness, enhancing longevity. Laminate floors are also prone to water damage, stains, and wear, which indicate when to replace them.