While looking through the classifieds to see what other landlords are charging for similar properties is a fine way to ballpark your rent price, a good property management company will conduct a thorough market study in order to set a rental price for your property, ensuring that you achieve the perfect balance between maximizing monthly income and maintaining a low vacancy rate.
Collecting and depositing monthly rent payments on time
If you’ve ever worked in a billing department, you know that securing payment from clients can be difficult, not to mention awkward. Property management companies have efficient, tried-and-true systems in place to effectively collect rent and maintain on-time payments. You’ll find this particularly important if you have a limited number of properties, and collecting payments on time is crucial to maintaining your cash flow.
Marketing and advertising your property
Through long experience, a property manager will know exactly where to market your property and how to craft compelling advertising materials—a significant advantage when it comes to filling your properties quickly and avoiding long vacancies.
Providing a written contract or rental agreement is an important part of organising a successful tenancy. While the vast majority of landlords will have this aspect covered, there may be some private tenants renting property without a written contract.
A tenancy agreement is a legally binding document which gives the tenant the right to live in the rental property, and the landlord the right to receive rent. It’s therefore important that the tenancy agreements landlords are issuing are up to date and legally compliant. Due to the fast-paced nature of the rental sector, landlords who don’t employ the services of a letting agent could potentially be putting themselves at a higher risk with the contracts they’re supplying.
With all this in mind, we’ve taken a look at why tenancy agreements are vital and how one should be put together.
Why are tenancy agreements so significant?
Providing a tenancy agreement to your renters may not be a legal requirement, but if you intend to take a deposit – which the vast majority of landlords do – then it’s in your best interest to enter into a written tenancy agreement. What’s more, without a written tenancy agreement you won’t be able to claim possession of the property using the section 21 accelerated process once the notice has expired. One of the key criteria for being able to issue section 21 accelerated proceedings is having a tenancy agreement in place.
Buying and selling real estate is a large financial decision for investors, landlords, and homeowners alike. With any investment comes tax situations, payments, and legal requirements. That said, when you invest in rental properties, there are clever and legal ways you can reduce your tax burden. Today we go over some rental property tax loopholes that can help you lower your tax bills.
What are Rental Property Tax Loopholes?
Rental property tax loopholes are provisions in the tax code that allow landlords to reduce tax liability. That said, rental property tax loopholes depend on many things, such as obtaining the property, what type of investment it is, and other important factors.
Most landlords and property owners are looking to get the most from their real estate investments. Whether buying or selling real estate, investors need to know how to maximize profits and avoid unnecessary payments.
However, it’s crucial to accurately document income, expenses, profits, and other mandatory tax considerations when it comes to filing taxes. If you need assistance during tax time, it’s a wise decision to reach out to a financial advisor or tax professional.