Spending more than 100 hours and more than anyone else, or substantially all the time in the business.So if you own an STR and meet the test, you can set up a tax deduction machine.Some issues -- You have to count your time, and the time other people work in the biz (cleaning, maintenance, etc..)- If use the property more than 15 days or 10% of the time it becomes a residenceI suspect this is part of why the STR trend has picked up so greatly amongst professionals working in tech.

Also note that Rabbu does not take cleaning costs into consideration, so that will lower it.

Income Late fee Gross rent Expenses Advertising Cleaning Gardening/lawn mowing Insurance Interest on loan(s) property tax Legal expenses Pest control Property agent fees/commission Repairs and maintenance Water charges Electric Bill Total expenses Net rental income or (loss)

Every 15 yrs HVAC, every 20 roof/kitchen/bath, every 5 flooring...  

We have expansive soils here (clay that expands when it gets wet) as well as some older cast iron lines and even some orangeburg so it's common to see sewer line issues (often just some tree roots that need to be cleaned then the line re-scoped).

I gutted it and added new drywall, new light fixtures, new bathrooms, new paint, new kitchen, new furniture and new flooring and new windows.

The person hired a company to clean up my 3rd house and gave me a surprise of 400 USD bill for the cleaning when it should be at maximum 150/200.

That teaches the occupants that they aren't 100% responsible for cleaning up after themselves.

If you have a 3bed/2bath with 1,800 square feet, granite counters, tile floors, and attached 2-car garage, then you want to look for homes that have those same features and see what they are renting for.

New HVAC, plumbing, electrical, floors, kitchen, baths & added a deck.