All Forum Posts by: Stephan Nemeth

Unfortunately I didn’t.  I ended up working with 3 separate contractors as I had to fire the first two mid project.  A lot of heartburn but eventually I finished the project and learned quite a bit for rmthe next time.

From what I was able to find; 7 days or less is automatically schedule C, 9-30 days is dependent on what services are provided, and 30 plus days are schedule E.  Granted I have come across several contradicting positions as well.  Where my specific situation gets a little more confusing is that I have multi family units where there is a mix of longterm tenants and short term so I wasn’t sure if there is a tipping point where everything becomes schedule C vs. E or if I should just allocate expenses and income and do both.  Probably some gray area here but I am not sure.

Thanks Yonah, I’ll reach out to the guys you’ve recommended.  Thanks for the response as well Paul, my concerns are not necessarily around depreciation (I’m pretty sure that buildings are depreciated over 27.5 years opposed to 20 years) or other deductions that are typical to long term rentals but rather tax guidance that dictates what is a schedule E rental portfolio vs. a schedule C business similar to hotels.  This classification seems to be in a bit of a gray area as I am having trouble finding consistent guidance as well as an idea of what is typically enforced both on a federal and local level.

Hey BP,

I have converted a couple long term rental units to short term in 2017 and plan to convert several more in 2018.  I was hoping to get in touch with a CPA to work on some tax planning for 2018 as well as get a better handle on 2017.  I am in Atlanta, GA but haven’t come across any knowledgeable resources yet, any recommendations would be greatly appreciated.  

Thanks in advance,

Steve Nemeth

Joel, you're spot on with what I am thinking;  as long as my occupancy and daily rates are high enough to cover the additional costs of short term renting vs long term leases then it would make sense all while lessening my work load of normal tenant issues and turns.  While looking around at other short term rentals in the area, it appears that the occupancy and daily rates can support this even with anticipated additional expenses somewhere between 25-50% but I was hoping to engage a management company to help validate the rentability of my specific units and additional expenses.  The other challenge/issue would be the other current long term tenants that reside at these multi family properties during the "test" phase as I am sure they wouldn't be thrilled with new neighbors daily but I suppose that's a separate issue.

Thanks for the responses everyone, biggest reason why this site is so good.  Paul, I've looked into the short term rental meet-up a couple times but I work full time and so does my wife.  On top of that I've got a little one running around so the timing is always tough.  Paul, seems like you've got a pretty good system going.  Ideally, if my first couple testers go well and I'd be in your position before long but with the aforementioned full time jobs, I don't have the availability for that quite yet.  I'm sure 22 has got to keep you pretty busy.  William, I will definitely reach out Kimberly Smith and see if this is something she could help with.  Thanks for the connection. 

Hey BP,  I have multiple properties in the Virginia Highlands area of Atlanta, GA that are currently all inhabited by long term leases.  Several of those leases are coming up shortly and due to the bustling area, I was thinking of turning them into short term rentals.  There seems to be high occupancy on similar rentals in the area so it looks viable.  I was hoping to get some additional information on management structure and expenses from those who have made this transition and ideally get in touch with a management company that would be interested in taking on this type of business.

Thanks!

Thanks for the suggestion and feedback.  I was PM'ed by a couple agents and it looks like I should be able to capture some savings while increasing my coverage.  Once I settle on a provider and policy, I'll post some information and maybe others can benefit as well.

My insurance renewal just came in for my 1910 built quad in Atlanta Georgia and I figured it was time to do my due diligence on rates.  Anyone have any suggestions on companies that insure rental properties of this type and age?

Hi everyone, 

I am looking for a contractor in Atlanta for a relatively large scale renovation on a 1910 built single family home that has subsequently been split into a quad.  Any connections or recommendations would be much appreciated.

Thanks,

Steve