3 Ways To Reduce Your Vacancy Rate

You have a great rental property. You made sure to do all the best updates and the property is in a great location. You’re worried, though, about keeping the property rented so you can pay the mortgage and taxes on it. So what are some things you can do to reduce the chance that you have a vacant property.

Carefully screen tenants

3 Ways To Reduce Your Vacancy RateFirst, be careful about the tenants to whom you rent. Screen potential tenants. Do full background and credit checks. These will give you a good indication about their reliability. Interview them carefully. Be sure to ask for past rental references. Be careful, however, not to ask questions that could be construed as discriminatory. Check their references, and match them to the background reports. Find out what kind of tenant they were: did they pay rent timely; did they cause problems; why did they leave.

Well maintained property

Next, be sure to keep the property well maintained and charge a fair rent. Take care of the landscaping. Provide snow removal for driveways and sidewalks. Make sure that preventative maintenance is done on schedule so systems like the HVAC, plumbing and electrical are in tip top shape. Do your homework about fair rents in your area and keep to that range. A Realtor or property management company can help you with that.

Be responsive to tenant needs

Lastly, once you have a good, reliable tenant, be responsive. If they call about a problem or issue respond immediately. Get someone there to fix the problem. If you’re out of the area, hire a property manager or management company to take care of this. A good company will respond 24/7 365 days a year.

Remember that a happy tenant will stay and become a long term tenant. Take care of your tenants and they will help take care of your property. After all, isn’t that what you got into investment real estate for in the first place?

4 Things You Can Claim As Depreciation When You Have A Rental Property

If you’re new at owning a rental property, you may be finding that all of the rules and regulations, laws and so forth are a bit overwhelming. Add on top of that tax requirements, what you can and can’t write off, how and so on, a new landlord can find themselves spending a lot of time on all those ins and outs.

One of them is depreciation and what you can depreciate.

What is depreciation?

4 Things You Can Claim As Depreciation When You Have A Rental PropertyDepreciation sounds daunting, but basically it’s writing off the cost of an item that will be useful to the property for more than one year. How much and how long depends on several things, but basically if the cost is a one year expense, you write it off in its entirety that year, but if it’s a larger improvement that will last, such as a bathroom overhaul or new driveway, then you depreciate the costs over the useful life of the item or items.

That means you divide the total cost by the useful life of the improvement, and write off 1/nth of the cost per year.

Requirements

You can only do this with property that wears out, decays, gets used up, or becomes obsolete over time. For instance, the land the building is on isn’t an item you can depreciate, but he building is. According to the IRS, you can depreciate a rental property if it meets all of these requirements:

1) you own the property;

2) you use the property in your business or as income-producing activity;

3) the property has a determinable useful life (i.e. it will wear out, etc.); and

4) the property is expected to last more than one year.

So what can be depreciated?

The structures on the land, house, garage, sheds, swimming pools, parking lots, tennis courts, and other facilities for your tenants. These can all add up to a substantial deduction from the income of the property for tax purposes.

Other items are things inside the home: stoves, refrigerators, furniture, carpets/flooring and furniture (if you provide a furnished space). Other things that you use in connection with the rental property, like computers, lawn mower, or automobile you use to conduct your rental activity.

If you aren’t sure, contact a tax professional for guidance.

The Money You Spend On Your Rental Property Is Not Personal Anymore

You decided to use your home as a rental property. Great! Time to shift your financial thought process about that property from being a home where expenses are just that, expenses, to one where those expenses aren’t personal any longer. What do we mean by that? Read on to find out.

First, your rental property is a separate “business.”

The Money You Spend On Your Rental Property Is Not Personal AnymoreThat means that the income from that property, the rent paid to you, is considered income for tax purposes. Now before you worry about that, remember that where there is income, there are deductions.

Think about it. You have deductions for your personal expenses. Things like health care and medical expenses, real estate property taxes, mortgage interest, childcare and so on. Your rental property is no different.

You will need to keep track of things like improvements made to the property, utilities paid, real estate taxes and mortgage interest paid and property management fees. The IRS has guidelines and your accountant can be a big help in what is and isn’t deductible.

Long term benefits

Next, the money you spend on your rental property will give the property, and you, long term benefits. This is because like when it is a home, improving and keeping your property in good repair will increase the value of the property.

So as with your home, keep valuation in mind when making upgrades to the property. Also keep that in mind when screening tenants. One tenant that trashes your property can decrease the value considerably while one that cares for it like it was their own will help you maintain and increase the value.

It’s a business

Remember, having a rental property means it’s no longer about you. Think of it as your home and the emotional attachment will cloud your financial judgment. Think of it as a business and you will benefit now and in the future.

Is Your Rental Property A Business

You have a rental property. Whether it was a home you lived in or just an investment property, if someone asked you if it was a Is Your Rental Property A Businessbusiness, what would you say? How you answer depends on a lot of things.

One thing to take into consideration is how emotionally involved in the “business”are you? If you have emotions tied to the property or business relationship it may keep you from making practical decisions.

Here is an example:

A young couple moves out of state and decides to rent their first home to one of the couple’s siblings. The couple needs the rent money from the sibling to pay the mortgage so they can save the money they make now for their next home. This sibling is also responsible for the utilities. The couple keeps the utilities in their name just to be sure they are being paid. The sibling consistently shorts the rent and refuses to pay the utility bills. Instead of being able to rationally decide that evicting the sibling is the answer, the couple instead puts up with it until it causes issues between them. Business? Probably not!

Next, how do you account for the monies collected?

Is the security deposit in a separate interest bearing account? Are the costs and income also kept separate from household accounts? How the IRS determines if something is a business or not is by seriously looking at commingling of monies. Successful businesses, even family run ones, don’t put business assets into house accounts.

If you seriously want to treat your rental property as a business you need to change your thinking.

If you need help in what to do, contact a property management company like Denver Realty and Rentals. We can help and take the day to day responsibilities and money collection, etc., out of your hands. We can help you treat it like a business! 303-452-5853

Rental Property Management Broomfield CO

Broomfield, Colorado is a fantastic place, especially if you have a rental property to share with another family. As a
landlord, being available 24/7 to maintain that property is difficult at best. This is especially true if you’ve moved out of the area. So you need a great property management company. There are many to choose from, but your choice is Denver Realty & Rentals. They provide the best service for real estate investors and their properties.

24/7 365 days a year

Rental Property Management Broomfield CODR&R provides all of the services you could possibly need, 24/7 365 days a year. It would be great if emergencies happened during the day when your plumber, electrician or contractor has regular business hours. Unfortunately, that’s not usually the case!

They usually happen in the middle of the night, on holidays, at times that are inconvenient. That doesn’t bother DR&R. They have plumbers, electricians and handymen ready to help whenever your tenants need them.

Oh no, your current tenant has given notice! How can you possibly get the property cleaned, repaired, shown to prospects and re-rented in 30 days? Keeping it rented is the only way you can make money. Don’t worry, DR&R will get your property in tip top shape, shown and rented, and also improve it to increase your equity. They also inspect annually and between tenants.

Range of services

DR&R provides you with a wide range of services to make your property shine and stay rented. They provide cleaning and repairing between rentals, advertising the property between tenants with professional photos, background check prospective tenants and show the property, protect your identity if that’s your wish, help the tenants by providing quiet use and enjoyment of the property, make sure all fair housing laws (Federal and State) are followed, collecting rents and evicting tenants when necessary.

Don’t try to do it all yourself

Hire the best property management company with the most expertise to handle your rentals. For more information visit:    http://denverrealtyandrentals.com/property-management/

For more information about the Broomfield, Colorado area visit these sites:

http://www.colorado.com/cities-and-towns/broomfield
https://en.wikipedia.org/wiki/Broomfield,_Colorado