Reduce Your Property Tax bill With Rental Services
As a property manager in charge of rental services, I am often asked the same question-what makes a rental service different from a for-sale property management company? My reply time and again is that a rental service is much more profitable for a property owner. Here’s why:
The rental services performed by your manager are a safe harbor.
Your manager provides a safe harbor where nothing is hidden. That’s a very simple explanation of what your manager does. It is also another reason to keep him or her organized. Your property needs to be well managed by having everything in order so nothing slips through the cracks.
performed by your office manager have an additional incentive to keep everything running smoothly. In today’s real estate market, landlords need to rent out their properties as quickly as possible. They do this by offering either a “short-term lease” or a “flexible lease agreement”. A short-term lease is usually for a weekend or a few weeks; it offers a much lower cost than the long-term leases offered by most investors. Many investors opt to rent a property for the entire term of the lease; this is a mistake.
Most property owners
will opt for short-term rentals because they believe this will offer them a lower monthly expense. They may also believe that they will not have to go through the tedious leasing process involved with long-term rentals. Both these beliefs are incorrect. Even landlords with short-term rentals can benefit from scheduling someone to prepare the necessary paperwork and maintain proper rental records on their behalf.
Another way to save money on your investment property taxes
is to qualify for a tax credit of up to 250 hours of rental services. To qualify you must purchase or lease a property that will generate at least five hundred thousand dollars of income. If you do not qualify for this credit, you can still significantly reduce your tax bill. The Internal Revenue Service has established an easy-to-use website that will help you determine if you qualify for this credit.
are only one reason why rental companies offer such valuable investment tools. Other popular rental tools include rental trucks, scooters, and construction equipment such as cranes. Construction equipment and vehicles allow rental companies to increase their inventory in a short amount of time. All of these rental tools and services help the investor is far more efficient in their day-to-day operations.