Tag: landlord accounting

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Landlord Tips

Winter Maintenance Tips for Landlords

Winter Maintenance Tips
Winter is a time of year when we need to be extra vigilant about rental property maintenance.

Landlording is a year round business. In other words, it is not a seasonal business. Winter is a time of year when we need to be extra vigilant about the maintenance of our homes. The winter months bring changes in weather and drops in temperature. Here are some simple winter maintenance tips for landlords to prepare.

Keep Tools at the Ready

In order to keep your property in top shape during the winter, you should make sure that you have all the necessary equipment at hand. In snow-prone areas, snow blowers and shovels are essential. For snow blowers, make sure the machines are primed and filled with gas and oil. Clean the machines in the fall so they are ready to use immediately in the winter.

Prep the Yard & House

Winter is a good time to trim bushes and cut back trees. Bad snow storms can knock down trees. You don’t want trees to fall on your property and cause damage. While you’re taking care of the landscaping, it’s a good time to also clean the gutters and check the chimney. Debris and water in gutters can cause more harm as temperatures drop. And having a clean chimney can prevent potential fire hazards as your tenant may want to keep warm by the fireplace. Changing filters regularly is among the winter maintenance tips for landlords. Additionally, you should check pipes and drains to make sure they are not frozen and try to avoid any possible water leaks by keeping gutters clear.

These winter maintenance tips for landlords will incur some form of cost. Fortunately, it is easy for landlords to track them in landlord software. By tracking expenses, landlords can run reports that may help make budgeting easier for future years. RentalIncomeExpense.com follows the Form 1040 Schedule E expense categories.

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Landlord Tips

How to Advertise a Home for Rent

Advertise Home for Rent
Landlords can advertise a home for rent online to maximize number of applicants.

When a vacancy becomes available, landlords need to know how to advertise a home for rent. Landlording is a business. And rental income happens with a paying tenant. So the sooner a landlord can fill a vacancy, the sooner the landlord will generate income. It can be a daunting task, however, to navigate the rental market and successfully advertise a home for rent. The following tips can help make the process easier and draw in more potential applicants.

First, it is important to ensure the home is in good condition. Investing in basic repairs and upgrades to the interior and exterior of the property can go a long way in attracting tenants. Such activities include painting, landscaping, and even just a good cleaning.

Next, create an eye-catching advertisement. Provide a detailed description of the home, benefits of living in the area, and your contact information. You can describe your rental home’s proximity to public transportation, schools, and nearby shopping centers to draw attention. Pictures of the interior and exterior of the home as well as of the neighborhood round out your written description. Consider staging the home with furniture and decorations to make it look more appealing to potential applicants.

Lastly, post the ad on multiple platforms, such as social media and online listings like Hotpads or Zillow. Another important step is to ensure that the home is priced correctly. Doing research into the current rental market and local rental rates can help determine the best rent for the property.

And remember, keep track of the expenses you incur when you advertise a home for rent with your landlord accounting software, like RentalIncomeExpense.com. That way, when tax time arrives, it will be easy to prepare your returns.

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Landlord Tips

Organizational Tips for Landlords

Organizational Tips for Landlords
Well organized records can make life easier for landlords.

Good organization is important when running a business. Landlording is no exception. Yes, it take time and effort, but having well organized records can make your life easier. Here are a few organizational tips for landlords to implement when managing their rental property.

Create a Filing System

One aspect of being organized is the ability to find things quickly and easily. With landlording, there can be a lot of documents. Documents include applications, leases, maintenance request, and communication between landlord and tenant. Going paperless is ideal, however, it may be inevitable to have some paper. So first, have a physical or digital filing system in place that is easily accessible and understandable to those who need to know. In a digital world, you would simply save files to the appropriate folder on your device, such as a laptop. If you have to deal with paper, it is good to invest in a scanner. That way, you can scan paper and then save the digital copy.

Track Income & Expenses

Another among the organizational tips for landlords is tracking income and expenses. This task is critical for two reasons. First, it enables landlords to know if their business is profitable or not. Second, it makes tax time easier. Landlords may not want to spend a lot of money on expensive or complicated accounting software. That’s OK. Because there are tools designed just for landlords that help track income and expenses and provide reports. For example, RentalIncomeExpense.com is a free tool created just for landlords. Plus it provides reports, like a Schedule E Helper report, that can assist at tax time.

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Landlord Tips

Landlords Can Make Tenant Lives Easier

RIE Tenant Easy
Landlords can make tenant lives easier in just a few simple ways.

Much has been written on ways to help landlords succeed. This blog post is not wholly different other than taking the view of how to help tenants. Happy tenants can make landlord lives easier. If there are ways landlords can make tenant lives easier, then it is a win win for both landlord and tenant. Here are a few easy things landlords can do for tenants.

Ways landlords can make tenant lives easier

Many tenants today consider the use of technology essential to daily living. One of the basic applications of technology is communication. Many tenants have smartphones, which allow them to be accessible anywhere. Landlords who communicate via text or email make tenant life easier. Talking on the phone, mailing letters, and meeting in person are time consuming, slow, and unappealing.

Smartphones are powerful tools. Beyond the immediate use of communication via text, phone, email, or information gathering from the Web, smartphones can be the key to your rental property. Literally. Landlords can install keyless locks on their rental property. With keyless locks, tenants do not have to keep track of a key. Depending on the type of lock, tenants can use a code or their smartphone to open and lock doors.

Something as simple as providing in unit clothing washers and dryers is a way landlords can make tenant lives easier. Carrying around clothes – dirty or clean – is not fun. Dishwashers are a standard appliance in rental properties. Why can’t washers and dryers be, too?

All of these simple ways landlords can do for tenants makes happier tenants, and they benefit landlords. By tracking these types of expenses, landlords can deduct these costs on their taxes as part of their landlording business. Free landlord accounting software like RentalIncomeExpense.com is an easy way to keep track of such expenses.

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Landlord Taxes

Tax Breaks for Landlords

Tax breaks for landlords
Tax breaks for landlords can help them save money.

Landlords are entrepreneurs trying to find a way to build successful businesses. Collecting rent, managing expenses, and keeping tenants happy are just a few of the many things on the landlords’ “to do” list. Believe it or not, the tax code is one way landlords can follow to try and minimize expenses. We will share a few tax breaks for landlords below. We recommend consulting with a tax professional or CPA to best handle and maximize your tax return potential.

Mortgage Interest

If you have a mortgage on your rental property, you are most likely paying interest on your mortgage payments. Landlords can deduct mortgage interest at tax time, which for many landlords, is their largest deduction.

20% Pass Through Deduction

From 2018 through 2026, the 20% pass through tax deduction allows landlords to be taxed on 80% of rental net income. This deduction is only for pass-through entities where landlords run their rental business as a sole proprietor, LLC, or S corporation.

Maintenance Expenses

Landlords can deduct the expenses related to repairs to rental property. For example, the cost to repaint the house, fix a leaking pipe, or replace a broken toilet are deductible. To make life easier, landlords can use income and expense tracking tools. A free tool designed just for landlords is RentalIncomeExpense.com.

To maximize tax breaks for landlords, please consult a tax professional or CPA.

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Landlord Tips

Free Tools for Small Landlords

Free Tools Small Landlord
Free tools for small landlords help them succeed.

Small landlords own and manage at least one unit and maybe max out around 10. Compared to large property management companies, small landlords may be more price sensitive. To help them succeed, there are free tools for small landlords.

Free Income Expense Tracking

Regardless of size, landlords need a recordkeeping tool when managing rental property. For small landlords, accounting software like QuickBooks is expensive and overly complicated taking quite a bit of time to learn. On the other hand, an Excel spreadsheet is free, however, it isn’t powerful enough. It is not easy to create helpful reports from basic spreadsheets. RentalIncomeExpense.com is landlord accounting software that is free, easy to use, and generates meaningful reports.

Free Tenant Screening

Finding the right tenant makes landlording easier. The ideal tenant is one that will pay rent on time and keep the rental property in tip top shape. So tenant screening becomes really important. A free tenant screening option for small landlords is provided by SmartMove (a TransUnion service). SmartMove charges a fee for the credit reports, however, the landlord can designate the applicant (tenant) to pay the fee as many landlords bundle that fee as part of an application fee.

Free Vacancy Listing

Online advertising is one of the most popular and wide-reaching methods today. Landlords can advertise listings with a real estate specific site. Some are free like Realtor.com and Apartments.com. Others, like Zillow, charge a fee, however, Zillow owns other listing sites which means you maximize your reach as your listings are on multiple sites.

These free tools for small landlords can be effective and make landlording easier.

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Landlord Tips

Income Expense Tracking for Long Distance Landlords

Income Expense Long Distance Landlord
Income expense tracking is easy for long distance landlords.

A long distance landlord is someone who does not live near their rental property. Landlording success is not determined by how close or far you live to your rentals. A few simple tips including income expense tracking for long distance landlords can make them a success.

Rely on the Community

When situations arise with the rental, like a broken toilet, long distance landlords cannot be there to remedy the situation. Instead, they have to rely on people who can be present and help quickly and successfully. Having an electrician, plumber, and handyperson that can address a situation quickly (and bill you later) will give you peace of mind. Adding to that local team can be a landscaper who will ensure your property looks good and is cared for. An alternative to organizing a local team would be hiring a property management company. It is important to interview a few to compare their services and fees.

Apply Technology

Technology is a long distance landlord’s friend. Something as simple as communicating with tenants by text or email can be easy and effective. Additionally, installing cameras around the property can provide safety measures for the tenant and give the long distance landlord a view of the property.

Screen Tenants

Having a tenant you can trust, that will take care of your rental property, and pay rent on time is every landlord’s dream. Screening tenants become even more important for long distance landlords. Taking the time to review applications, interviewing tenants, and performing background checks become essential in an attempt to finding great tenants.

Income expense tracking for long distance landlords is important, especially when the landlord is not able to do any of the work themselves. Free landlord accounting tools like RentalIncomeExpense.com make it easy for landlords to record income and expenses. Landlords can be successful even when they do not live close to their rental property.

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Landlord Tips

Landlord Tips for a Strong Tenant Relationship

Tips For Strong Tenant Relationship
There are simple tips for a strong tenant relationship.

Landlords are in the business of providing housing. Their customers are tenants, and landlords should not ignore the popular motto, “the customer is always right.” Maintaining a strong relationship with tenants is advantageous for the landlord. A landlord’s ideal tenant is one that pays rent on time and takes care of the rental property. When a landlord has such a tenant, then their goal should be to reduce the chance of tenant turnover. Finding a new tenant is a time consuming task. Time is money. Making the tenant experience friendly can lead to a positive and long lasting relationship. Here are a few easy landlord tips for a strong tenant relationship.

Listen

There will be times when tenants make requests. Before immediately saying “no”, landlords who first listen may earn the respect of tenants. For example, tenants may want to paint rooms a different color. The cost of paint or hiring a company to paint can be relatively minor when landlords can enjoy the long term benefit of a satisfied tenant. Landlords who use accounting software like RentalIncomeExpense.com can easily track an expense like paint. And landlords who offer to cover the cost of painting rooms will score even higher with tenants!

Communicate

Something as simple as calling or emailing tenants to see how they are doing can have a meaningful impact on tenants. It can show the landlord cares. At the same time, landlords who respond promptly to tenant issues or concerns convey the importance of the landlord tenant relationship. No one likes to be ignored. As in most relationships, helping each other out and feeling heard are important qualities. The landlord tenant relationship is no exception and simple tips for a strong tenant relationship with listening and communicating can go a long way.

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General

Free and Easy Income Expense Tracking for Landlords

Income Expense Tracking Landlords
RentalIncomeExpense.com is designed specifically for landlords – Free & easy recordkeeping.

Landlords need an easy to use and affordable recordkeeping tool when managing rental property. Property management software like QuickBooks is expensive and overly complicated for the small landlord. Landlords need to spend a bit of time understanding how to set up accounts and then recording data into QuickBooks. An Excel spreadsheet, however, isn’t nearly powerful enough. Basic spreadsheets cannot easily generate the different reports landlords need. RentalIncomeExpense.com is the solution. It is free and easy income expense tracking for landlords.

Designed specifically for landlords, RentalIncomeExpense.com follows the same income and expense categories as those on Schedule E of Form 1040. So there is no setting up of accounts. Landlords simply record income and expenses as incurred and assign them to existing accounts. It’s Schedule E helper report makes tax time fast and easy for you and your accountant. In addition to the Schedule E helper report, RentalIncomeExpense.com provides landlords with a profit and loss report which helps them understand how well their rental property business is doing.

Income expense tracking for landlords does not have to be costly or complicated. RentalIncomeExpense.com is free and easy making it a top choice for landlord recordkeeping needs.

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General

Rental Property Wear & Tear or Damage

Wear and Tear or Damages
Landlords incur costs when prepping rental property for the next tenant.

When a tenant vacates at the end of the lease, landlords have an opportunity to assess the state of the rental property. Normal wear and tear are items related to everyday living and are to be expected. Damage or negligent abuse by the tenant, however, is not normal and can be grounds for holding the security deposit. It is important for landlords to recognize the differences between normal wear and tear and damages.

Normal wear and tear include items such as minor holes, fading paint, and floor scratches. These items occur from everyday living. For example, small holes are present if the tenant hung photos on the walls. It is customary for landlords to clean the rental property for the next tenant. Cleaning includes filling minor holes in the wall, applying a fresh coat of paint, and even waxing floors.

Damage, on the other hand, are signs of intentional abuse or neglect by the tenant. For example, unusually large holes in the walls or unapproved wallpaper or painting are not normal wear and tear. Withholding some or all of the security deposit can be grounds in order for the landlord to cover the cost to repair damages.

Landlord recordkeeping is important to maintain. Whether the unit needs repairs due to normal wear and tear or damages, landlords incur cost and should record such expenses. RentalIncomeExpense.com is free landlord accounting software. With this free accounting tool, it is easy to record rental property income and expenses that align with Schedule E categories. Reports such as Profit and Loss and Schedule E Helper guide landlords as they manage their rental properties.