The Big Picture On CapEx For Landlords: Capital expenditures are significant investments for maintaining and improving your rental property’s long-term value.  Disregarding capex in your forecasting and budgeting can lead to some very ugly consequences, the chief of which is negative cash flow.  Landlords can employ several tactics to ensure that capex and even operational expenses don’t disrupt their cash flow.  Disclaimer The information provided on this website is for general informational purposes only and should not be construed as legal, financial, or investment advic ..read more

The Big Picture On How Much To Charge For Rental Application Fees For Each State: Different states have different laws regarding rental application fee limits. Some states do not have limits, while others, like New York and California, have stated limits and other requirements. No limits don’t mean that landlords can charge what they want, though.  Landlords need to be aware of the proper way to charge reasonable rental application fees. Failing to do so may result in a complaint or a lawsuit.  Steps to avoid lawsuits and complaints include open communication and transparency, not ..read more

The Big Picture On Should You Rent To College Students: Renting properties to college students near universities is an attractive real estate investment.  Advantages of renting to college students include higher potential income, higher occupancy rates, co-signer safety nets, and potential property appreciation.  Disadvantages include inexperienced renters, a high likelihood of damages, annual turnovers, extended vacancies, and fierce competition. Landlords should maximize their investments and apply certain strategies to make sure they get the most out of their real estate rentals ..read more

The Big Picture On Should Landlords Accept Partial Rent Payment: Accepting partial rent from one tenant but not another could be seen as discrimination, opening you up to lawsuits. Landlords must treat all tenants consistently. Accepting partial payments might set a bad precedent and make tenants less likely to prioritize paying rent on time in the future. Partial payments can make bookkeeping complex, especially when dealing with late fees and multiple units. It’s best to keep things clear by only accepting the full rent amount. If you really need to accept partial rent payments, protect yo ..read more

TL;DR Overview on Rental Property Tax Deductions: Landlords have different rental property tax deductions that can help with keeping more of their income in their pocket. They can deduct virtually every real estate investing business-related expense, and they typically go on Schedule E (so you can still also take the standard deduction). You can also deduct for “paper expenses,” like depreciation, that you don’t actually incur. The more aggressive you get in taking deductions like meals, travel, entertainment, and a home office, the more likely you are to trigger an IRS audit. renReal e ..read more

One of the first questions I hear from new real estate investors is: “Should I create an LLC for rental properties, rather than owning them under my personal name?” It’s a good question, and shows foresight. After all, people love to sue landlords. And love to hate landlords for some reason, despite the fact that rental property owners offer a much-needed service. As a general rule, the answer is yes: you should use an LLC for investment properties. But that opens the door to a slew of other questions. As a recovering landlord who has owned dozens of investment properties, here are the q ..read more

I love animals. I have almost always had at least one pet in my home. Pets enrich our lives and provide unmatched companionship and unconditional love. Except for my cat, whose affection seems to depend on my filling his bowl—and, even then, often includes the use of his teeth. I love him anyway. But as a landlord, you get none of the benefits of your tenants’ pet ownership and all the downsides: the potential property damage, the extra wear and tear, the noise complaints, and the cleanup after they move away. Landlords have legitimate concerns about the potential damage and disruptions th ..read more

Rare is the departing tenant who leaves their unit in truly pristine condition. More often, the situation falls somewhere between “Fine” and “What happened?” — with the occasional “What the…?” thrown in for good measure. Even when the space is spic and span, it needs to be cleaned and refreshed for the next tenant. Which raises two questions: Do you have to pay for that out of your own pocket? And if not, how much can you charge the departing tenant? The answer to the first is a slightly longer version of “It depends,” and we’ll touch on what that means in a moment. The answer to the secon ..read more

I have a theory that nobody likes insurance. Don’t get me wrong, it’s important and often required by law or by lenders. But insurance is just so psychologically unsatisfying. I don’t know anyone who’s really excited to get their sweet new coverage. At best it gives you peace of mind for a modest price. Even when your policy pays out, it feels less like a huge cash windfall and more like making some awful outcome somewhat less bad. For landlords, however, insurance takes on a whole new dimension. Not only must you cover your assets to insure against losses from floods, fires, and severe sto ..read more

What is a skip tracer? It sounds like some kind of cool, futuristic sci-fi job — like a cyberpunk private eye who tracks people down through a network of intergalactic wormholes.  And in a way, that’s exactly what it is, minus the cyberpunk theme and the part about the wormholes. Skip tracing plays a role for real estate professionals ranging from real estate agents to landlords and investors. So how can real estate investors use it to do research and discover off-market deals, and what other uses do investors have for skip tracing? Strap in for a ride down the wormhole.   ..read more