Rental Property Tax Deductions: What Landlords Should Know – Keyrenter San Antonio

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 San Antonio

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 San Antonio can help you manage your renters. Contact us for more information if you have a property that you need managed.

The Need to Know Rental Property Facts and Trends – Keyrenter San Antonio

Are you up to date with changes to the Rental Market?

Rental properties are a great tool for getting in extra, steady income. But if you’re not paying attention, changes in market trends can sneak up on you.

Don’t worry, we’re here to help! Read on for important rental property facts and trends for the San Antonio markets.

Rentals are a Growing Market

There are over 100 million renters in America. Between 2010 and 2018, the number of renters increased by 9.1 million.

And the share of renters now makes up 37 percent, which is the highest it’s been since 1965. In the past, the percentage of renters has fluctuated over the years. But, since the 2000s, it has seen consistent growth.

This means that it is currently the best time in the last 50 years to invest in rental properties.

The Importance of Millennials

Increased property prices and an increasingly mobile workforce have resulted in Millennials being the largest rental and the smallest homeowner demographic in the United states. Only 4% of all homeowners are Millennials.

The sheer volume of millennial renters is not something that can be ignored when looking for a rental investment. A rental property that is appealing to this younger demographic will have much less difficulty finding a tenant.

The age at which Millennials purchase homes is also increasing, meaning that they remain in the rental market for longer – increasing their attractiveness as long-term tenants.

Less Families with Children

Family units are less likely to move around, which is why the prevailing wisdom has always been that the most attractive long-term rental properties were family homes. But over the last decade this idea has been put to the question

Since 2010, the number of American families with children has decreased by 1.3 million. As the types of properties that are most sought after by renters depends on their family composition, it is likely that ‘family homes’ will become less sought after in the rental market.

Although the overall numbers of renting families have only decreased slightly, this is a trend that should not be ignored.

Rental changes in 2020

Although historically overpriced cities like New York and San Francisco have seen rent reductions this year, the same cannot be said of for most cities. Even during the uncertainty of 2020, the US rental market has seen a strong trend in rent prices.

The rental market in San Antonio remains strong, and has actually seen some of the largest increases across the country. The average rent for a one bedroom property has increased Year on Year by 15.9%, closely followed by 2 bed properties at 15.10%.

Rental Property Facts Everyone Should Know

As you can see, there rental property market is a booming industry, and by keeping on top of the latest rental property facts and trends, you can make great long term investments in the market.

If you are looking for quality property management services, contact us today at Keyrenter San Antonio Property Management today. Whether you are a homeowner or a real estate investor, our award-winning services focus on maximizing your profits and maintaining your rental property.