A CPA familiar with local STR regulations can definitely help make sure you’re set up correctly!

We’ve all seen the headlines—short-term rentals are getting regulated to death, and long-term tenants?

Check into your local regulations.

However, anything that impacts functionality like plumbing, HVAC, or safety issues should be handled before listing to avoid turning off potential renters/buyers.If you’re re planning to lease it, tenants will expect everything to be move-in ready before signing.

Assets identified in this study include:Standard windows and doorsInterior ceilings and wallsBasic plumbing and electrical systemsBuilding structural elements and roofingBasic HVAC componentsWater heatersFire protectionThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

Quote from @Joy Daniels: As a short-term property manager I've seen how this industry changes so often—new guest trends, tech tools, and regulations seem to pop up all the time.

For instance, plumbing might be updated but not every pipe. 

I know that the regulations in Beverly Hills is "friendlier" to landlords than Los Angeles and I'm exploring the option to convert a multifamily apartment into condos. 

I started by patching about a dozen (not small) holes in the wall, re-doing all the drywall in the bathroom, installing new shower plumbing, putting in recessed lighting, installing seamless LVP throughout, texturing/priming/painting all walls, installing new 5 inch pine baseboard all around, and installing custom bathroom vanity/pantry cabinets, and hanging new custom shaker doors in the kitchen.

I suggest gradually assembling a reliable maintenance team that includes HVAC, plumbing, and other essential services.Tenants are responsible for providing access to the property.