Basically you get rid of your operating deductions and file on a Schedule C vs Schedule E.Here is an excerpt from an IRS document - https://www.irs.gov/publicatio...Schedule C (Form 1040), Profit or Loss From BusinessGenerally, Schedule C is used when you provide substantial services in conjunction with the property or the rental is part of a trade or business as a real estate dealer.Providing substantial services.If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C.

Who does your cleaning? 

Below are some more details and a few questions.PROPERTY/LEASE-rural Minnesota town (around 5k people population)-built in 1974-property is in good condition, right on the main street-10 units ranging in sqft-1 unit on a 3 year lease, 7 are on a month-to-month lease (not sure how long they've all been there), and 2 are vacant (yearly rent for these 2 open units combined would be around $22,000)-there is room for about a 5% increase in fair market rent for the units on a month-to-month lease-the expenses paid by the owner are taxes, insurance, utilities, snow removal, cleaning the common areas and minimal maintenance-yearly rent $133,560-yearly NOI of $103,447QUESTIONS-what are people seeing for office/retail CAP rates?

Our cleaning fee is only $65.

The realtor ended up handeling it after I basically said (and made it very clearn) this was her mess and according to my attorney she needed to clean it up.

Cleaning fee is a passthrough paid by renter.

Or offer him 200k, clean it out, paint it and sell for 250k.

Clean up the landscaping?  

Property has gone from being a bad apple to a clean and comfortable place to live.

The current owner currently has a small local team in place to manage cleaning, landscaping, etc and she does some of the hands-on management such as putting together welcome pkgs for guests, etc.Bookings and Financial -The property has been on Airbnb since 2019 and did about $140k in '21 (don't have visibility to '22 numbers) and much of  '23 is booked already on Airbnb.