Basic services like garbage collection don’t qualify.Material participation: Owners must pass one of the seven material participation tests, such as:You spend more than 500 hours working in your short-term rental business.You carry out all the necessary tasks to run the business yourself.You work more than 100 hours in the business, and no one else contributes more time than you do (this is often considered the best and easiest test to meet).

If you use a PMS, look to see if you can set the preparation time in there or check and see if Airbnb/VRBO gives you that option as well.

I also challenge the neighborhood when they test the waters to see if they can loiter on our properties.

Otherwise, is too hard to know for sure how much a property might cost to prepare for a STR.

I want to make sure Im prepared with the correct documentation to rent out my condo and would appreciate all opinions if im missing anything: - I have the rental application- I have my rental property agreement that I will have the renter sign and make copies of and provide them a copy.- I have the statement of condition that I will have the renter sign and make copies of and provide them a copy.- I will have them provide a copy of their tenants insurance for my records. - Will provide receipt for first and last months rent.- Im thinking of not charging security deposit because of all the strict MA laws and just using the last months rent as a sort of security deposit, thoughts?

This is a great learning lesson and I will be much more prepared/ educated to ensure this does not happen again.  

Prepare for battle.Step 2.

I’m also putting together my “dream” team and interviewing attorneys, title companies, lenders, real estate brokers, contractors and magicians so I’ll be fully prepared when the 100 postcards I send out to randomly selected people results in the 14 offers to sell their notes that represents the average 14% response rate to junk mailings. 

In fact, it would be a huge mess to apply it retroactively now, after half of 2023 tax returns have been prepared and filed.

., if you want to " test drive" prospective custodians/ advisors before you buy, design questions based on your concerns and then call each one with questions based on those concerns.Ask each one a tax question about a prohibited transaction.