All Forum Posts by: Kathy Henley

@Devin Long No, you requested service. The repair person was late and the PM was making use of the time. We have a duty to see that the place is being cared for and safe. I check that the lights are on the smoke detectors - hate to see the little flap open with nothing inside. I have given up on straightening the blinds, but this person saw something hopeful in your blind, two points.

@Kappil Tom What does it say in the lease? It was working when the Tenant took possession and the damage happened during their tenancy, shouldn't the cost of repair go to the tenant? Or do you consider the repair normal wear and tear? I wouldn't replace the lower panel if the door was functioning. I would not go to court but try to negotiate a payment plan with the person who wants to continue using the garage. Or say bye-bye.

I keep my garages rented on a month to month 'License to Park' agreement and do my best to prepare for such events. 'Doors, trim and downspouts near the door must remain in good working condition . . .' All in all, garages don't make that much money ($135/mo in my market). Some years are better than others, though it is always rented.

@John H. If you could save copies to your computer and print later, the task would be easier. The website allows sorting by property. See purchase history page. Did you type in job name or address when purchase was made? Search by job or address. The page will populate with all purchases for that job. Download each receipt into a file, saved by property address. Now there is no need to print, as you can open each file and gather info for your spread sheet or Quickbooks.

If you did not type in job name at time of purchase, the website allows us to do it while logged in to our pro account. See the columns on the purchase history page? Name the job and sort later, as outlined above. Naming and sorting receipts before printing will make the job go faster.

@Brad Scott Annual income and expenses of an investment property go on Schedule E of the 1040 tax return. Take a look at the categories. If one needs more categories, there is a spot for 'Other expenses'. This is where I put tenant supplies, for toilet paper and stuff. Furniture is also a business expense. This might be listed in the operating expenses (overhead) of the business, with the computer and office supplies. Ask your CPA for help in setting up the categories at the start, as it is important to be consistent year to year. Furniture depreciates, which is a business expense and, here in my city, we pay property tax on the value of business furniture. That is another tax form.

@Lauren Valencia If you were the master of the AirBnb account, you would black out the month that the owners would be in town. This would prevent bookings from other travelers. By controlling the account, you will be the manager of the furnished apartment for the owners - communicating with the guests, cleaning and repairs - without bothering the owners. The rental income would post to the property account like other rental income, less fees and repairs.

@Lauren Valencia There is management and there is the marketing. As property manager, you will pay the utility bills and keep the the property in shape. AirBnb is all about marketing and this takes time. Be sure to create separate PM Agreement for these properties as responsibilities expand. Create G/L account 'Tenant Supplies' for toilet paper and stuff. Will you handle emergency repairs between tenants? Spell it out with the property owner.

When creating an account on AirBnb, they will ask for what bank account the rental payments go to. It will be verified. This might be the same account as all rent payers, but the marketing 'face' on the app may be different. If you were ambitious, you might create a fictitious name for managing the brand of the furnished rentals. A link on the AirBnb site would take travelers to this site with more photos and a brand of dependable quality. Again, this takes time, so consider this when setting management fees.

@Rob Duhon We all need tenants to take care of the property and keep up the standards of the neighborhood.  What does it say in the lease? If LL and Tenant agreed that no cars would be parked out front, they are in violation of the lease. If they are responsible for cutting the grass, they are in violation of the lease. Each violation is cause for LL to give notice. Tenants could correct the violation or move out. No need to make something up. Or, you can choose not to renew. What does it say in the lease? If Tenants are entitled to 60 day notice, follow the lease and give proper notice. If none is outlined, follow your local law. No reason is necessary. When you write a new lease, be clear on tenant responsibilities. And be better on following through, the value of the neighborhood depends on it.

@Carter Mezzio Welcome! It depends on your access to funding. I used a loan and bought an undermanaged 4-plex. I lived in one unit at a time. As a unit became vacant, I moved into it and painted it to make it ready to rent, moving a few times! This brought up the rental income. In time, three occupied units pay the bills, with a little left over for repairs and maintenance. I found this book helpful:  Investing in Duplexes, Triplexes and Quads, by L. Loftis. The author shows that single family homes can also be starter rentals. Chose one that isn't fancy (don't pay too much) and in a school district that would attract a future family.

@David Duron The business agreement between partners, is a legally binding contract. The IRS rules are legally binding. The bookkeeping records verify the facts. There a plenty of books written by accountants, which is a profession who promises to follow legal docs and tax rules. They may outline best practices. Search this web forum for titles. Or, ask your CPA for guidance.  They know stuff.

@Kyle Warren Investors who are not afraid of sewer repairs or old furnaces can take a look at the 'Back on the Market' listings, as the inspection report must have revealed something 'scary'.