Landlord Tips - Keyrenter Property Management Houston

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

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!

Essential Things to Do If Your Tenant Can’t Pay Rent – Keyrenter Houston

The COVID-19 pandemic has put over 40 million people out of work in the US–a full quarter of the labor force. While there are no reliable estimates as to how many of these people are renters, we do know that nearly 50 million people in the US rent their homes.

Many people out of work aren’t eligible for unemployment or, if they are, get much less than what they were getting when they were working. This lack of income has resulted in millions of tenants unable to pay rent.

This has put landlords in a tenuous position, as they often have mortgages to pay and millions of landlords are individual owners who rely on rent to pay their bills. If you’re a landlord with a tenant who can’t pay their rent, here are 5 things you can do.

1. Work Out a Payment Plan

One of the most important things you can do is to communicate with your tenant. Talk to them to learn about their situation if they can’t pay their rent. If possible, work out a payment plan with them.

If you can, allow them to pay partial rent or to pay it over a few weeks rather than paying it in full at the beginning of the month. Whatever arrangement you work out with your renters, make sure it is realistic and put it in writing. Put all of the details, including dates and amounts, in an agreement that both you and your tenant agree to and sign.

2. Speak With Your Mortgage Lender

The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes help for borrowers by waiving late fees on your mortgage payments and suspending foreclosures. If your tenants can’t pay and because of that, you can’t pay your mortgage, contact your lender to see what programs they have available for you.

3. Contact Your Insurance Company

You don’t want to let your insurance lapse, but you can contact them to see if they have any programs for landlords experiencing non-payment of rent due to COVID layoffs. Some companies are waiving late fees, allowing policyholders to pay over time, and not canceling policies for nonpayment.

Many of these programs aren’t automatic, so you’ll have to take the initiative to call your insurance company and ask them for assistance.

4. See What Your State Is Doing About Property Taxes

Most states have summer and winter property taxes. If your taxes are due and you can’t pay them, check with your city, state, or county to see if they have made any special provisions due to COVID. Some localities are allowing residents to pay their taxes in installment plans, waiving late fees, and allowing them to defer payments for a few months.

5. Avoid Eviction

Many states have issued emergency orders that prohibit landlords from evicting tenants, so this may not be an option anyway. Even if it is, consider working with your tenant as much as possible to keep them in the property. Eviction is costly for you as the landlord, there’s no guarantee you’ll get any of that money back if you win, and then you have an empty property until you find a new tenant.

If Your Tenant Can’t Pay Rent, Try to Work With Them

As a landlord, you rely on your tenant to pay rent so you can pay your bills. However, the unprecedented furloughs and layoffs of the COVID-19 pandemic are largely outside of their control. If you can work with them to keep them at all possible, it’s in your best interest to try to do that.

Keyrenter Property Management in Houston can help you manage your renters. Contact us for more information if you have a property that you need managed.

Winter Is Around the Corner: Is Your Rental Property Prepared? – Keyrenter Houston

Keyrenter Property Management Blog Houston Winter Preparation

According to the Insurance Information Institute, winter weather events are the second leading cause of property insurance claims. In 2019, winter-related claims accounted for $2.1 billion in property losses.

As a property owner in Texas, you might assume that you’re safe from these losses. However, Texas does experience cooler temperatures in the winter months, and you can take steps to prepare.

Read on to learn more about preparing your rental property for winter.

A Winter-Weather Checklist for Rental Property

Protecting your rental property requires preparation. The following are the most important steps you can take to protect your investment from damage.

1. Conduct a Heating and Air Conditioning Inspection

Check that your HVAC systems are running efficiently. Also remember to replace the filters.

2. Check the Ductwork

If you haven’t cleaned and inspected your ductwork in a few years, this year’s winter prep is a good time.

Debris builds up gradually, so experts recommend cleaning a property’s ductwork every 3-5 years. Doing so reduces strain on the HVAC system and keeps it running efficiently.

3. Inspect the Roof and Gutters

As you examine the roof, look for shingles that are cracked and broken. These can work loose during a storm.

Gutters should be free from dirt and debris. Clearing gutters and downspouts protects the roof and interior ceiling from leaks.

4. Inspect Doors, Windows, and Walls

Perform an interior and exterior inspection for cracks, and use caulking or sealant to patch any problem areas.

Also look for any gaps that indicate windows and doors aren’t closing securely.

5. Inspect the Chimney

A fireplace adds value to your rental property and increases its appeal and comfort for renters. However, a fireplace can create risks when not properly maintained.

As the winter approaches, ensure that your property’s fireplace and chimney are safe. A professional chimney sweep can clean the chimney and inspect it for signs of damage.

6. Be a Protector of Your Detectors

All states require property owners to install working smoke alarms. More than half of all states require working carbon monoxide detectors.

Your rental agreement should spell out smoke and carbon monoxide detector maintenance responsibilities. If those responsibilities fall to you, change the batteries and test these alarms as you prepare the home for winter.

If your rental agreement requires renters to maintain detectors, remind them of this responsibility.

7. Conduct a Landscaping Inspection

Protecting your rental home and your tenants requires preparing not just the home but the rental property as a whole. This includes the yard.

Inspect trees and bushes for signs of weakness. Remove any branches that appear unable to withstand strong winds.

A winter property inspection is also a good time to check sidewalks and other walkways. As you inspect the property’s cement work, look for cracks and raised areas.

If an inspection reveals even minor cracks, use a concrete sealant to patch them. Doing so regularly—when you prepare your property for winter—can prevent minor cracks from becoming bigger problems.

8. Communicate with Tenants

As the owner, you’re ultimately responsible for protecting your rental home from damage. However, your efforts rely on your tenants. All the steps you take can mean little if your tenants aren’t informed and don’t follow through.

You can manage these steps and communicate with tenants yourself. However, hiring an experienced property manager is one of the best ways to ensure clear communication. Property managers can help you find the best tenants. They can also help you make the most of your investment.

9. Protect Vacant Properties

If your rental property is a vacation home or will otherwise be vacant for extended periods this winter, be sure to regularly inspect the property for signs of trouble. This is especially important throughout the winter months.

Don’t Let the Winter Season Leave You and Your Tenants Frosty

A popular adage suggests that you don’t want to borrow trouble. You don’t want to rent it either though. Preparing your rental property for winter saves you and your tenants from inconvenience, financial loss, and potential injuries.

Follow these rental property tips to prepare for winter. If you have questions or want to enlist a professional property manager, contact Keyrenter Houston for assistance today.

Property owners: Are You Doing This Every Year? – Keyrenter Houston

As everyone knows, time flies. It’s easy to put off things that need to be done until next week, next month, or next year. However, for property owners, there are several things that should be done annually, no matter what.

Keyrenter Property Management Blog Houston Property Owners

Renew Leases

When an annual lease expires, most state laws say the default result is a month-to-month lease. In order to keep your properties occupied, you should make sure all your leases are renewed for an entire year. This will also help property owners make better long-range plans by opening the discussion with tenants and forcing them to make definitive decisions.

Analyze Your Insurance and Renters Rates

It’s easy to assume that just because you have insurance and set renters rates, you don’t need to worry about that anymore. However, insurance companies frequently adjust rates and programs, and checking to make sure your rates are comparable to other companies’ offerings is a good idea. Take a close look at any coverage changes as well. Be sure that what you are charging for rent is still commensurate with what the local market is asking.

Confirms Locks and Keys Still Work

When tenants decide to change the locks, they often forget to tell the property owners and managers and to provide a new key. It’s important for you to be able to access the property in order to handle repairs or to access the unit once the property is vacated. Check once a year that the locks and keys are still in working order.

Update Tenant Contact and Emergency Information

It’s easy to lose track of your renters if phone numbers or e-mail addresses change over time. Double check that all your contact information is current annually and you won’t have to scramble around when you actually need to touch base with your tenants.

Check Maintenance Items

Let’s face it. Many tenants rent because they don’t want to be bothered with regular home owners’ chores like changing furnace filters, fixing leaky faucets or changing smoke detector batteries. Although most tenants will call for major problems or repairs like a broken appliance, many will tend to ignore those small maintenance items around a property. The problem is that those maintenance items end up costing you money. Leaky faucets and running toilets increase your water bill and dirty furnace filters can run up your heating and cooling costs. Making sure smoke alarms and carbon monoxide detectors are in good working order with fresh batteries is an important safety consideration.

Clean The Gutters

What autumn arrives and trees start dropping their leaves around your property, be sure to take the time to clean out your gutters so that water is properly routed away from the foundation of your property. That will help you avoid major water damage problems down the road.

By being faithful to an annual checklist of things to do with your rental properties, you can keep your property safe and maintained and your tenants happy and settled.

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

Landlord Tax Deduction Basics