All Forum Posts by: Julie Washburn

Thank you all for the feedback! This is all in line with what makes sense to me.

Hi! We have a tenant who is doing a 1 year lease to arbitrage our property (single family home) out as a short term rental. The temperatures have been unusually low and pipes in the home froze for 5 days so far, making the house unusable as a short term rental. We've all been working on getting the pipes thawed and water back on, but no luck yet. The tenants would like us to pay them the amount of their lost revenue as a rent concession. The risk there is that it sets a precedence for us to reimburse them for any uncontrollable event that results in a loss in revenue. We offered a general, smaller, rent concession as a courtesy. They weren't satisfied with that. Has anyone dealt with this type of situation before?

I would love to hear from others how their short term rental management commissions are set up. The manager for my short term rental charges 30% of gross revenue. However, they include municipal taxes and fees as part of that gross revenue (this wasn't defined in the contract, so I had to figure it out over time by asking for more transparent billings). So, when someone books on Airbnb, Airbnb collects those required taxes and pays them directly to the corresponding municipalities. As the owner, these funds never come near my account. However, my property manager then bills me for 30% of these costs. Has anyone else had it done this way? Trying to decide if this an industry norm or if it's something to push back on. The commissions taken out due to this can add up to $700-800/month in costs to me. 

Thanks Natalie! I have been reaching out to contacts in the directory for help, and I'm so glad to have that resource. I had emailed you too, and learned that you'll reach out to potential new clients in June.

Thank you all! This is so helpful. We were advised by a lawyer to set up the structure this way a few years ago (LLCs funnel into an S Corp), and now realizing that this was poor advice due to the tax implications down the road. We really need more than a tax filer, and instead a tax planner/strategist to avoid these things in the future. 

I am a Real Estate Professional, but I seem to be having trouble with my CPA understanding how to account for this. 2022 was my first year as a Real Estate Professional. My husband has a W-2 job with a large amount of tax withheld. In 2022 we did a cost segregation study to capture a massive amount of depreciation on multiple properties, so there's a lot of bonus depreciation to be taken. Our tax structure has each property in an LLC that is owned by an S Corp, and my husband and myself both own the S Corp. Our CPA is telling us that she did not see any additional ‘basis' or money that you personally invested in the LLC's, so we cannot claim the depreciation from the properties. She is also saying that she set us both at the "no limitation non-passive status" so the Real Estate Professional status is "immaterial".

I would love any help I can get here! I was at the MidTerm Rental Summit this past week and checked in with others, confirming that she doesn't seem to know how to do this. But am I missing something here? I've invested a lot into the cost segregation studies, and I really want to figure out how to capitalize on these tax incentives.

I would love to know of any mid term rental property management companies that service the Seattle/Tacoma area.