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Rental Property Tax Deductions: What Landlords Should Know – Keyrenter Richmond

There are many exciting and interesting things to learn about being a landlord. But, one of the most often overlooked topics is rental property tax deductions!

As a new or experienced landlord, you need to take the time to become a master of your taxes to ensure everything is filed correctly to get you the correct deductions. You may be surprised to find that some of your day-to-day expenses qualify for deductions, and the more actively you track your expenses, the better tax season will be for you!

Rental property tax deductions may seem complicated at first, but this article has everything you need to know to file your taxes correctly every year! Read on to learn more!

Landlord Tax Deduction Basics

Every single year landlords pay more in taxes than they should. The reason is that they fail to take advantage of all the tax deductions that they qualify for, which means that they’re missing out big time! 

Rentals are responsible for more tax benefits than almost any other type of investment, so learning these basics can be the difference between losing money and turning a profit!

  • Interest: Your most considerable deductible expense
  • Depreciation: The actual cost of your property won’t be immediately deductible, but it will grow as the property depreciates
  • Repair: Any associated costs for keeping your property in good working order are fully deductible the year they’re incurred
  • Travel: Any travel associated with your rental business should be tracked and reported to ensure you receive an accurate return
  • Employees & Contractors: Anyone hired, whether permanently or temporarily, has deductible wages
  • Insurance: Any paid premiums for damages to your rentals, health insurance, and workers compensation insurance should be covered here
  • Professional Services: Any property management services, attorneys, accountants, advisors, and more need to be tracked

Tips for Tax Deductions & Strong Finances

Understanding the types of tax deductions that you’re eligible for is only part of the process. To receive the deductions you deserve, and maintain healthy finances, follow these two tips:

Tip One: Create a Strict Budget

Create a well-defined budget to ensure you’re prepared for whatever may come your way. Working with renters can lead to many unique situations, but a strict budget can help you prepare for the unexpected. Implementing a budget can also help you set specific goals for necessary, significant repairs that take time to pay off. 

Tip Two: Get Professional Help

If you’re not financially savvy, don’t be afraid to enlist professional help! Whether you need help managing your finances or filing your taxes, there is a professional out there that can help you make the most of each penny. Just make sure you track these costs since they’re eligible for tax deductions!

The Importance of Tax Deductions for a Rental Property

Being a landlord is a lot of work, and managing your finances can be overwhelming. Much of your day to day operating costs may be eligible for deductions. It’s crucial that you closely monitor and track your income and deductions and keep accurate records for tax purposes.

Understanding the tax deductions that you’re eligible for doesn’t have to be an overwhelming experience! Start by organizing your finances, creating a budget, and keeping track of the areas you’re spending in that qualify for a deduction. But, if all else fails, enlist professional help!

For more information on property management, check out more informative articles on our blog! To learn more about our business or to hire us to manage your property, contact us!

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The Need to Know Rental Property Facts and Trends – Keyrenter Richmond

Are you up to date with changes to the Rental Market?

Rental properties are a great tool for getting in extra, steady income. But if you’re not paying attention, changes in market trends can sneak up on you.

Don’t worry, we’re here to help! Read on for important rental property facts and trends for the Richmond markets.

Rentals are a Growing Market

There are over 100 million renters in America. Between 2010 and 2018, the number of renters increased by 9.1 million.

And the share of renters now makes up 37 percent, which is the highest it’s been since 1965. In the past, the percentage of renters has fluctuated over the years. But, since the 2000s, it has seen consistent growth.

This means that it is currently the best time in the last 50 years to invest in rental properties.

The Importance of Millennials

Increased property prices and an increasingly mobile workforce have resulted in Millennials being the largest rental and the smallest homeowner demographic in the United states. Only 4% of all homeowners are Millennials.

The sheer volume of millennial renters is not something that can be ignored when looking for a rental investment. A rental property that is appealing to this younger demographic will have much less difficulty finding a tenant.

The age at which Millennials purchase homes is also increasing, meaning that they remain in the rental market for longer – increasing their attractiveness as long-term tenants.

Less Families with Children

Family units are less likely to move around, which is why the prevailing wisdom has always been that the most attractive long-term rental properties were family homes. But over the last decade this idea has been put to the question

Since 2010, the number of American families with children has decreased by 1.3 million. As the types of properties that are most sought after by renters depends on their family composition, it is likely that ‘family homes’ will become less sought after in the rental market.

Although the overall numbers of renting families have only decreased slightly, this is a trend that should not be ignored.

Rental changes in 2020

Although historically overpriced cities like New York and San Francisco have seen rent reductions this year, the same cannot be said of for most cities. Even during the uncertainty of 2020, the US rental market has seen a strong trend in rent prices.

The rental market in Richmond remains strong, and has actually seen some of the largest increases across the country. The average rent for a one bedroom property has increased Year on Year by 15.9%, closely followed by 2 bed properties at 15.10%.

Rental Property Facts Everyone Should Know

As you can see, the rental property market is a booming industry, and by keeping on top of the latest rental property facts and trends, you can make great long term investments in the market.

If you are looking for quality property management services, contact us today at Keyrenter Richmond Property Management today. Whether you are a homeowner or a real estate investor, our award-winning services focus on maximizing your profits and maintaining your rental property.

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A Landlord’s Guide on How to Help Tenants During the Covid-19 Pandemic – Keyrenter Richmond

The COVID-19 crisis has left millions of Americans in a tight financial spot. Many have been furloughed, laid off, or had to close their businesses. Others are saddled with medical bills from hospital stays or are dealing with grief from losing a loved one to the novel Coronavirus.

With so many tenants begging for rent relief, landlords across the country are also in a tricky spot. Property management is expensive, and while being able to cancel rent would be great, it could do a lot more harm than good.

If you’re trying to figure out how to help tenants through these difficult times, there are still a few things you can do. Read on to learn some other ways to offer landlord help and show you care without losing out on rent.

Stay Up-to-Date on the Pandemic

First and foremost, make sure you’re getting your Coronavirus information from a reputable source.

Turn to accredited entities like the World Health Organization for updates. Don’t listen to the speculations of friends on Facebook or biased media outlets. The number of cases in your area and new safety recommendations may inform how you approach property management.

Consider sending weekly email updates to your tenants about the pandemic. Let them know the current status in your area, instructions for safety procedures, and any restrictions you have in place on your properties. This lets them know that you’re aware of the situation and have their best interests in mind.

Reduce Points of Contact

Early in the pandemic, all but the operations deemed “essential” were either put on hold or switched to remote work to flatten the curve. Even though many businesses are open again, reducing contact is still the best way to protect yourself and others.

Whenever possible, close down the office and conduct your duties remotely. You may want to allow one person at a time to hold office hours or offer in-person meetings by appointment only. Ask all parties to wear functional masks and practice social distancing when a meeting can’t be avoided.

Stay on Top of Your Landlord Duties

Even in the midst of a pandemic, the need to provide services to tenants continues. Even so, to cut disease transmission, you may have to change how you approach them.

With evidence that COVID-19 can spread through touch, frequent cleaning and disinfecting of all common areas is vital. This includes your office space, building lobbies, and apartment hallways and stairwells. If you manage single-family residences, offer a guide on how your tenants can disinfect their own spaces.

Keep home visits for routine maintenance inspections to a minimum whenever possible. Try using a video chat app like Zoom or Facetime for check-ins instead.

Revise Rent Regulations

Even though you can’t cancel rent entirely, you may be able to make it easier for your tenants who are struggling. Take a look at your policies for late fees to see if they can be relaxed, and try to offer flexible payments on a case-by-case basis. It’s better to help a responsible tenant through hard times than to be faced with an unexpected vacancy.

Follow These Tips for How to Help Tenants Through the COVID-19 Crisis

In an ideal world, we could offer total rent relief without any negative repercussions. Until then, though, using this guide on how to help tenants in other ways can show them you care while still covering expenses.

If you need some extra help providing exceptional service to tenants during these difficult times, Keyrenter Property Management of Richmond is here for you. Contact us online or give us a call today to learn more about our comprehensive services.

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