Category: Landlord Education

Building a portfolio of rental properties is a step toward financial security. However, it is not as simple as just buying one property, and then another, and another . . .  A well-developed portfolio begins with a specific financial goal and an organized plan to achieve it. For example, Zach has three children. The oldest one …

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The issue at hand– You have a chunk of money (perhaps you received an inheritance, an annuity matured, you sold an asset, etc.), or you have a monthly increase (a raise, a debt paid, a rental property mortgage paid off). The question– Should I pay down/off my home mortgage, pay off a current rental property mortgage, or invest in …

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In previous articles, we discussed tax deductions for landlords and repairs vs. improvements. Today we‘ll offer insight into ‘safe harbors.‘ The IRS offers three variations, which can help landlords sidestep the “Is this a repair or an improvement issue.“   Safe harbor for small taxpayers  Safe harbor for routine maintenance  De Minimis safe harbor    Safe Harbor for Small Taxpayers (SHST)   The SHST permits …

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Maintaining your rental property is a given. From minor repairs to major renovations, these repairs and improvements can be deducted from your taxable income. The key is knowing the difference between a repair and an improvement. Repairs can be fully deducted in the year you experienced it. Improvements, however, must be depreciated over multiple years.   …

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The many benefits of owning rental properties are well known.  Unlike other investments, real estate has various avenues for profitability such as: monthly cash flow, property appreciation, equity growth from mortgage paydown, and the ability to use depreciation to reduce tax expenses.  ALL GOOD THINGS! Of course, it’s important to properly report income, expenses and …

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What is Transaction Privilege Tax? Transaction Privilege Tax (TPT) is a tax imposed by many cities in Arizona for the privilege of doing business. The tax is charged based upon gross revenue and is collected by the Arizona Department of Revenue on behalf of the cities. This tax also applies to Residential Rentals and is …

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1. Not Properly Screening Tenants: Screening all occupants that are 18 or older helps ensure you find high-quality tenants that will care for your home. Screening should include credit, criminal history, eviction history and employment verification. It’s important to set minimum criteria for each to determine a qualified applicant. 2. Not Performing Routine Inspections: Inspections are important …

Continue reading “5 Common Mistakes Landlords Make”