Lower Income Tenants?

If you?re not opposed to having lower income tenants who get assistance from the state or county, the local government does pay promptly as long as you keep up with your end of the paperwork.

Maintenance?

Make sure to keep up with maintenance around the property, even though the expense may seem a little much at the time it will prevent you from larger, more expensive repairs in the future.

DIY?

Do whatever repairs you can yourself to avoid third party costs. Its time consuming but it can be very cost effective.

Tenant Allowance?

Like many parents do with their children, offer a discount on rent for some tenants who perform maintenance tasks around the property. You will need reliable tenants who you can regularly count on but if they?re having financial difficulties they may be more than willing to shovel snow or mow lawns for a discount on rent.

Priority List

Constantly keep a priority list of things you?d like to do around the property and their order of importance, this way when a little extra money does come your way you can tackle them one by one.

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Budgeting Tips for Landlords

Neighborhoods are quickly compared on a variety of levels so people relocating can instantly get a better feel for the area. Enter your criteria and you?ll suddenly have a list of places that are available. For renters this can save hours and better prepare you with information on the neighborhoods.

For landlords the analysis helps monitor rental trends in their neighborhoods which can help with setting rent rates. This information is provided instantly so no more scouring the newspapers and calling for rates and amenities is necessary.

For people interested in investing in real estate, especially multiple family units, Zilpy is very helpful as it gives you information on what the units are renting for and therefore you can estate your gross income. You will also see what the trends in the area are and if the property you?re looking at is comparable.

With information like this so readily available it will be easier for everyone involved with apartments to comparison shop and gather more detailed statistics for their research.

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Renting Tool at Zilpy.com

Find a Tenant

Because your name remains on the lease (typically) and you are ultimately responsible, you are basically the landlord so you need to do your due diligence in finding a responsible tenant who will pay the bills on time and stay through the length of the sublease.

Get it in Writing

Like a landlord you should get a lease agreement in writing with the subleaser. Make sure they have a copy of all of the rules your landlord stipulated when you signed your lease and that they agree to abide by these rules as well as any you may impose. And don?t forget the signatures.

Inform the Landlord

Your landlord should know everything that happens with your sublease so send them copies of your signed agreement and contact information for you and the new tenant just in case someone needs to be contacted. You should also make sure the new tenant has all pertinent contact information as well.

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How to Sublease your Apartment

Look at the Market

Familiarize yourself with the local market and learn what else is for sale, find similar homes and look at their asking prices. Keep neighborhood, size, amenities, length of listing, and other key factors in mind.

Research Pending Sales

The price of pending sales isn’t advertized or available until the sale is finalized, but your realtor may be able to find out or you can call the listing agent and ask yourself. This will let you know what price range is hot in your local market and where you compare.

Local Market Trends

Most of the housing market is in a downward trend or a buyer’s market but some regions are starting to pick up and seller’s are having more luck, but a neutral market will have to come about before it’s an actual seller’s market. This will dictate your home price as much as anything else.

If you have a realtor then they can be of great help in this area. They won’t be able to set a price for you but can give you some helpful advice and can provide assistance with your research.

photo credit:?patriotweb

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Pricing a House to Sell

Renter’s insurance should really be required for all renters as its really quite inexpensive, most likely provides you with the only coverage you’ll have for your valuables, and damage to a shared property may be caused by someone else so it is a good way to hedge your bets.

Basic renter’s insurance covers any loss or damage to your personal property, family liability protection in the case of legal disputes, guest medical protection for anyone injured at your home, and additional living expenses if you’re forced out of your home due to a catastrophe.

Check with your insurance agent to see what sort of coverage they recommend for you and remember you can up the bill a bit by getting replacement coverage which will cover the full purchase price of your lost items and you could add high value item coverage for items not typically covered under insurance, like expensive jewelry or work valuables.

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Renter’s Insurance

Decreasing your Expenses?

Decreasing your expenses might not seem possible at first, but with a little work and a diligent review of your regular costs you can probably find some places to cut back. One thing you should do is look at regular service providers and see if you can find someone who?s willing to do the work for less or see if there is a way to optimize your current providers to get more out of them or a discounted rate.

Increase your Income

Raising rent is usually the first thing that comes to mind when landlords and property managers are thinking about increasing their rental income. But there are other charges you can implement to increase your income. Consider charging for parking spaces and renting out unused parking. Perhaps you want to loosen your pet restrictions and charge tenants a security deposit and a small monthly fee for keeping a pet. Make your money work for you, by making sure any deposits you collect are being held in an interest accruing account.

Just be careful that you?re not decreasing your expenses and increasing your income too much or your tenants will feel ripped off and you?ll earn a bad reputation in the local market.

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Increase Rental Property Cash Flow

Ask for It

Explain your situation to your landlord and ask if he or she is willing to give you a discounted rent rate temporarily. It may not work but it can?t help to ask. And your landlord might be more interested in keeping you as a tenant than losing you.

Work for It

See if your current landlord needs a property manager or a caretaker to help with the other tenants and the odds and ends around the property. If your current landlord doesn?t need help look for someone who does, you may be able to find a place that will let you live rent free for work you do around the unit.

Barter for It

If you have a professional talent that can be of use to your landlord then see if they?re willing to take you up on that offer. If, for instance, you?re a hair stylist maybe you can cut the entire family?s hair for free and in turn get a discount on your rent. If you?re a painter maybe you can paint units when old tenants mover out. Be creative and see what works.

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Getting a Rent Discount

Interest

Interest can be your biggest deductible expense. Make sure to include your mortgage interest as well as any interest you’ve accrued on loans or credit cards that you used for property repairs, maintenance or anything else related to your property.

Repairs

Speaking of repairs, any repairs that are ordinary, necessary and within an accepted amount are deductible.

Employees

Of course you can deduct your employees? salaries BUT remember to include everyone you use as an employee. So independent contractors who are hired to repair items or routinely perform maintenance are considered employees.

Losses

If you suffer any damage or theft to your properties you can get a tax deduction for part of maybe even all of the cost. This can fluctuate so you?ll need to look into it carefully and follow the rules closely.

Insurance

Insurance is one thing landlords often forget to deduct. Deduct your premiums for any insurance you have for your properties and any insurance you supply to your employees.

There are more deductions that landlords can take so make sure you read your tax forms carefully or contact an accountant who specializes in taxes for landlords.

photo credit:?blmurch

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Tax Deductions for Landlords

The first step when heading down the road to becoming a landlord is learning what your state and city will allow and what they won?t. Are you looking to share your home with a boarder who will basically have access to every room or are you looking to convert a basement, attic, or garage into a separate apartment? This will determine what laws and regulations you need to follow. There will be more regulations and rules if you?re going to create a separate apartment.

You?ll also want to establish some rules, you may think that people would respect some certain common courtesies when living in your home but that isn?t always the case so make sure you know what you?re willing to accept and what is totally not allowed. Then put the rules in writing.

Establishing a price for your rental is a little more difficult as you can?t simply pick a number you think is fair or one that will cover your unmet bills. You have to research the area to determine what similar rental units are going for and what is fair for what you have to offer.

Selecting a tenant should be the most important part of the process for you. You want someone who you think you can live with, you want to make sure they?re responsible, and you will have to comply with federal, state and local fair housing laws.

The last step is doing a final cleaning and inspection of the property with the tenant to make sure that everything is ready for them to move in.

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Rent a Room in your Home

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It is expected that in the next 10 years, as those echo boomers range between their early 20s to late 30s, housing will once again boom as they strive toward their American dream.

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But on the downside, the weak economy and job losses throughout the country are forcing more people out of the home market or into smaller homes. There has also been a reduction in home values across the country that have made some leery about home purchases.

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Another problem with the current economy and the housing market in general was the careless way that people went into the market, purchasing much more than they could afford on loans that were basically designed to fail.

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Hopefully when the market does turn around and perhaps another boom winds up we?ll be looking at home buyers who are more realistic about their home purchases than their predecessors and we can prevent another housing crisis of this magnitude.

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Good News in the Housing Front