If I simply refer the renters, my employer collects payment from the renter and pays me a percentage of the rent as compensation, up to a certain dollar amount.

So, if they are collecting interest, they will have to pay income tax on it, but the principal portion of each monthly payment is tax free.

@Theresa Harris Gotcha, assuming you have a property manager to offload finding the tenants, collecting rent, coordinating repairs etc?

Note your only option to enforce collection of late fees, repair bills for tenant caused issues, etc. 

The property is currently tennant occupied and she takes 80% while i collect the other 20% for mgmt fee.

If it were me personally, I'd rather buy 4 rentals in cash, collect 6K/mo in rent...and have $50K sitting in the bank to start off....not too bad if you ask me.

Well, it could increase it because you're collecting more rent, it could decrease it because you have more expenses and/or more paper loss (i.e. depreciation), or it could all come out in a wash if your increases in rent approximately match your new deductions.Let's say for 2020 you have $100,000 in profits that would be taxed at whatever your tax rate is. 

From my understanding of contract law, his failure to enforce the late fee for so long would waive his right to collect it.

After 6 months of him being on time, I sent him a $50 gift card thanking him for helping to simplify our rent collection.

I’ve been able to run a very successful Airbnb out of this property and collect rents I could have never imagined at first.