A little outdoor space goes a long way so if you wanted a common grilling space you could install a small patio for that.

Also I think it depends if you have a patio or not.

However, if your property manager is not adhering to your written agreement then it may be time to part ways.Your tenant is on a month-to-month and they are running a business in a residential home. my recommendation would be to contact the tenant and let them know you will only allow them to continue running the business if they take on ordinary maintenance (e.g. they pay the first $500 on all maintenance issues), provide proof their business is properly licensed and registered with the city, county, or state, and that they have the appropriate liability Insurance in place (at least $1 million) with you named as the additional insured or additional interest.

It’s an ordinary income. 

They are called ordinary and passive income and the passive (rentals) is lower taxes than ordinary (like flips). 

House 1: Harvey Flooded Foreclosure Single Family (Patio) Home 3 BR/2.5 Bath, 2350 Sq FtListed Price: $170k (would like to offer less)ARV : $300k (~$130sq ft based on comps)Margin at Listed Price : $130k Estimated Rehab : $60-70k (house has been gutted post-flood, appears to have had about 1 ft water.

In a flip, there is no capital gains tax, just ordinary income taxed at your marginal tax rate.

That is not the whole story though unless it is a patio, sidewalk or driveway.

That is, ordinary income subject to self income tax and basically. no different than ordinary wages/salary.

Unit 1 - Painted throughout, installed new floors throughout the downstairs, replaced appliances, kitchen cabinets, the bathroom vanity, the majority of the light fixtures, and the old dirty light switches and outlets.Unit 2 - Replaced water heater and rangeOther - Repaired roof, added some foundation supports, and added curb appeal by painting the patios/doors, replacing porch lights, and putting new house numbers on top of the paint What was the outcome?