Property Taxes 101

Property Tax 101

If you’re a new landlord, you might feel overwhelmed at the idea of filing your taxes this year. It’s no longer as simple as just turning in a W2! An organized system of records and receipts is now going to be your best friend. If looking at a Schedule E form is giving you a headache, a tax professional can walk you through the process. Before you go file though, there’s a few things you need to know…

  1. What Counts As Income

You probably know to include the rent you receive for the year as income. But have you considered how to treat advance rent and security deposits? An example of advance rent that you need to include would be if a tenant signs a multi-year lease that requires it. So if they pay an installment for 2016 and also their last year, 2018, BOTH count as 2016 income. The consideration for security deposits is that you do not need to count it if you plan on returning it to the tenant.

  1. Deductions You Can Make

It’s not just repairs and supplies that can count as expenses deductible from your return. Keep great records throughout the year, and you’ll thank yourself. Cleaning, travelling, and even advertising are all fair game if they are “deemed appropriate” as a necessary expense for running your business. However, improvements are not deductible. The full list is available on Form 1040, Schedule E.

  1. When there’s Depreciation

Depreciation can be a complicated concept. The process begins when the property is officially placed “in service for the production of income”, which means it does not need to have a tenant to begin depreciating. The process ends when the property is either retired from use or you have recovered all the costs associated with it. Landscaping is not usually tied to depreciation, but it might be under certain circumstances

  1. How You’ve Been Using The Property

If you’re new to property ownership, you might not realize you need to keep track of personal use days. Even if the rental property is in service most of the time, you still have to report any days you used it for something else. If you are in business with a spouse, you will count usage as a qualified joint venture.

  1. Who Needs a 1099

A good rule of thumb for 1099s is that ANYONE who receives more than $600 dollars in relation tomanaging the property needs a 1099 MISC Form, postmarked by January 31. For you as a property owner, this means you’ll probably be providing this form to people who maintain the upkeep of your property – any repair men, plumbers, carpenters, etc. who aren’t a part of a corporation.

All of the above information is available for review on irs.gov. You can also download the necessary forms and even speak to an interactive tax assistant within the website! But don’t be afraid to reach out to a professional. Over time you’ll find a record keeping schedule that works for you, and tax season will feel less like fighting through a mound of papers and more like a simple check of a box.

Ready to Give Up the Hassle of Managing Your Property?

Tips for Retaining Good Tenants

Tips for Retaining Good Tenants

If you’re a property manager/landlord, you know that well-mannered tenants pay rent and take care of the property. There is also loss involved in rental income as the property lies vacant, along with the time, effort and money that go into advertising for new tenants, screening potential tenants and turning the property.

Here are a few pointers to help you ensure that your best tenants stick around:

Look after the property and your tenants

Your job doesn’t end when you hand over the keys to the rental unit. To attract and retain good tenants, you need to have a clean, well-maintained property that demonstrates your intentions as a landlord or property manager. Make your tenants feel happy and proud that they live there. Dirty swimming pools, overgrown landscapes and malfunctioning lights are all factors that will matter when your tenant makes the final decision to renew the lease. A landlord or property manager who efficiently maintains a clean property and shows concern for the comfort of tenants will win support and loyalty.

Be responsive and positive

It’s easy to get your tenant to renew the lease if they like you and are glad to deal with you. Always answer tenant calls, call back and show up for important things to keep your tenant happy. Respond to tenant’s requests or complaints quickly and if you need more time to resolve the issue effectively, communicate this to the tenant. Don’t ignore the request, even if you think it’s beyond your control. You should also be proactive in solving issues that you know might creep up sooner or later.

Observe fair housing practices

Follow fair housing rules that help tenants create a comfortable home. Offer practical rental prices that are comparable with other properties in the neighborhood. Tenants won’t stay with you if you charge high rent that isn’t in line with the neighborhood or current market conditions.

Be friendly

Don’t be a stranger who only turns up to collect the rent. Send greeting cards or gift baskets to tenants on their birthdays, send well wishes on major holidays and thank them for being a good tenant. It doesn’t cost much and it will bring you a lot of trust and goodwill.

Create a rewards system

Many innovative property management companies use resident rewards systems to reward tenants for good behavior and reduce tenant layover. These programs are only beneficial for the landlord if there are a sizeable number of tenants.

Ready to Give Up the Hassle of Managing Your Property?

Let Us Introduce You to RENU Investor Property Management Indiana’s Online Home

Let Us Introduce You to RENU Investor Property Management Indiana’s Online Home

Serving property owners in Indianapolis and the surrounding region isn’t a task we take lightly at Real Investor Property Management Central Indiana. We aim to continually provide our clients with service they won’t get anywhere else. As we announce the official launch of our new online home, we couldn’t be more thrilled about the new resources and tools available to our clients and tenants. We truly believe that this marks yet another step in our journey to become the best property management group in the state of Indiana.

We started off the website development phase by partnering with OpenPotion, the industry’s leading creator of property management websites. Together with their team of experts, we’ve crafted something truly sensational. Let’s take a look at some of the awesome features of our new home.

Dedicated Portals for Property Owners and Tenants

As a property owner, it’s imperative to have continual access to your account. From monitoring your financial statements to reviewing inspection reports, we want to give you unparalleled access, around the clock. With our dedicated portals, that goal is no longer just a pipe dream. With the simple click of your mouse, you have full access to every property in your portfolio. Best of all, renters benefit from a portal of their own, which makes it possible for tenants to pay rent in mere seconds.

A Comprehensive Overview of RPM Central Indiana

We understand the intricacy of choosing a property manager for your home. After all, an effective management strategy can make or break your investment. Our new site goes into extensive detail and provides you with more information than ever before. From upfront pricing details to full bios of our talented team, we aim to provide all of our clients and prospective partners with an authentic view of who we are. We’re confident that you’ll love what you discover.

Detailed Information about the Areas We Serve

Tenants looking for a new place to call home often wonder which city would serve them best. From affordable housing solutions to accessible parks and public recreational spaces, the cities of Central Indiana have a wonderful array of attractions and appealing attributes. Would-be renters can explore this wealth of information, and discover more about the areas we serve. It’s just one more way that we’re advocating for property owners and businesses in our local area.

Whether you are a property owner looking for the right management partner, or instead a tenant in search of a new home, Real Investor Property Management Central Indiana strives to provide the absolute best service possible. We hope our new home on the web will serve as yet another resource for our loyal clients and tenants, and a further example of how we’re doing all we can to provide an unparalleled customer experience. We’d like to thank our friends over at OpenPotion, and we look forward to hearing your feedback as we launch our brand new online destination.

Ready to Give Up the Hassle of Managing Your Property?