Blog

Nov
22
Aug
16
Aug
10
Jul
26
Rental Myths vs. Reality

1. YOU'RE THROWING MONEY AWAY

WHILE YOU MAY NOT BE GAINING EQUITY IN A HOME, YOU ARE PAYING FOR SOMEWHERE TO CALL HOME, WHICH IS NOT THE EQUIVALENT OF THROWING MONEY IN THE TRASH

2. YOU HAVE NO NEGOTIATING POWER

RENT PRICES AND LENGTHS OF LEASES ARE OFTEN NEGOTIABLE. DON’T BE AFRAID TO ASK THE PROPERTY MANAGER OR LEASING AGENT TO SEE WHAT THE OWNER WOULD CONSIDER.

3. IT'S DIFFICULT TO GET OUT OF A LEASE

ALTHOUGH YOU ARE RESPONSIBLE FOR THE LEASE, DEPENDING ON THE LEASE TERMS, LEASE BREAK POLICIES CAN DIFFER. RESEARCH YOUR LEASE OR AS THE LANDLORD/PROPERTY MANAGER FOR MORE INFORMATION

4. THE LANDLORD IS RESPONSIBLE FOR ALL REPAIRS AND REPLACEMENTS

AGAIN, DEPENDING ON THE LEASE TERMS, THIS CAN DIFFER FROM RENTAL TO RENTAL. BE SURE TO UNDERSTAND THE LEASE AND WHAT IS COVERED BEFORE SIGNING

5. A LANDLORD CAN END YOUR LEASE EARLY

THE LANDLORD HAS TO FOLLOW THE LEASE, UNLESS THEY SELL THE PROPERTY TO AN INVESTOR WHO WILL KEEP THE RENTER IN PLACE THROUGH THE LEASE DATES.

KEEP IN MIND, WHEN IN DOUBT, ALWAYS ASK YOUR LANDLORD OR PROPERTY MANAGER BEFORE MAKING AN ASSUMPTION.


Jul
18
Restricted Breeds - A Thing of the Past

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About two years ago Arizona became the 20th state to completely do away with breed-specific legislation - laws that ban or otherwise regulate dogs by breed.

However, HOA’s and insurance requirements can vary.

Some other helpful information:

  • The law in Arizona (and most other states) says that when a dog bites,

The dog is always GUILTY, even if he was provoked by someone or something

  • Renters insurance carried by the tenant, usually covers dog bite lawsuits

  • The Landlord’s insurance policy usually protects the landlord when a tenant’s dog bites. In most cases, the landlord is not the responsible party, and the insurance pays for lawyers to get Landlord removed from any lawsuits.

  • In one year, State Farm pays over $60 million (total) for dog bite claims

  • Pet damage to a house, whether chewing, scratching, or urine or feces, is not covered by insurance. This is not always normal pets. I once saw a home where a Parrot had destroyed the doors, walls, and molding by chewing on these.

  • If a dog bites and there is an insurance claim, the insurance company will usually require that the tenant or homeowner get rid of that particular dog. For homeowners….not tenants… the insurance company will sometimes allow the owner to keep the dog, but the owner must sign a bite exclusion that says that their dog is no longer covered by their insurance.


Jul
13
How Often To Inspect?

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As a property manager it’s a good idea to inspect properties regularly.

When should you inspect?

  • Move In - done before a new lease begins, ensures all previous work has been completed and property is move in ready. Then again by the tenant once they move in to notate the condition of the property when the moved in.

  • Annual - done with a tenant in place to note the condition of the property; one, two or even three times a year is normal.

  • Move Out - accesses the overall condition once a tenant moves out

Remember a quick 5 minute inspection can prevent major expenses down the road.

This is a great time to see potentially unreported issues and point them out and advise the tenant these are things that need to be reported so they can be addresses, check for unauthorized occupants, unauthorized pets and just overall maintenance and upkeep.


Jun
14
Tenant Maintenance Responsibilities

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Here are some common things that are a tenant’s responsibility when it comes to maintenance. A good rule of thumb is if anything was caused by misuse or neglect, it is the tenant’s responsibility to take care of.

  1. Carpet Stains or floor damage beyond normal wear and tear
i.e. Spills, pet accidents, bleach, nail polish, etc.
  1. Plumbing Clogs
Plunging/clearing clogged toilets, drains and garbage disposal
Common causes: hair, trash in disposal, floss, QTips, wet wipes (are not flushable)
  1. Replacing light bulbs
To include regular and fluorescent, light fixtures, ceiling fans, refrigerator, pool, etc.
  1. Change out AC Filters every 30 days
  1. Replacing batteries
Including but not limited to garage remotes, smoke detectors and thermostats
  1. Simple fixes
Such as resetting a breaker or GFI or reset buttons
  1. Damage to walls/ceilings
i.e. drawings, scuffs, odor, etc.

May
24
Building Wealth With Real Estate: HOLD

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“HOLD is a long-term real estate investment strategy to which every real estate investor should aspire.”

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May
09
What is rental property investing and why do it?

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One of the simplest definitions of rental property investing is getting paid for what you own, rather than just paying to own it.

Benefits of investing in Single Family Homes:

  • Income: unlike with stocks and bonds yielding about 2%, it’s possible to generate in the low double digits in returns

  • Tax benefits: (https://www.tctproperties.com/blog/post/top-5-landlord-tax-deductions)

  • Flexibility: unlike multifamily homes which demand upfront costs, with single family homes you can choose how many you want to add to your portfolio and your own costs

Make sure you do it right!

  • Choose the right property: know what you are looking for; college town, family living, low maintenance, LOCATION, LOCATION, LOCATION, etc.

  • Do the Math: make sure you understand your monthly costs and plan for maintenance costs as well. Even though it’s a rental, there is still maintenance that needs to be done and it’s important to understand and budget accordingly

  • Hire a Property Manager: Shop around, find who works for you. Once you research and find companies you may be interested in, interview with them to find the perfect fit!

Are you ready to invest and start building wealth with real estate? TCT can help, call us today!

References:
https://www.forbes.com/sites/financialfinesse/2017/08/09/should-you-invest-in-rental-real-estate/#4839edf25c15
http://www.noradarealestate.com/blog/advantages-of-single-family-rental-properties/

Apr
19
Top 5 Landlord Tax Deductions

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Paying taxes is part of life, fortunately there are some beneficial deductions landlords can take advantage of. Here are 5 common deductions.

  1. INTEREST

Interest can be the one of the biggest deductibles for landlords. Common deductions include interest from mortgage payments as well as credit cards used for goods or services with the rental. Find out more about interest deductions.

  1. DEPRECIATION

Landlords can get back some cost through depreciation of their rental home. Here's how depreciation works.

  1. REPAIRS AND MAINTENANCE

Reasonably, the cost of repairs and maintenance can also be deductible in the year they are incurred. See here what is considered a deductible repair/maintenance and what an improvement/upgrade is

  1. INSURANCE

Insurance premiums are also deductible. This includes, fire, flood, theft as well as landlord liability.

  1. LEGAL AND PROFESSIONAL SERVICES

From attorneys, to accountants, to property managers…. You can deduct these fees as operating expenses.

Check out some other articles for more ways to save on your deductions.

Landlordology - Deductions for landlords

Houselogic - Tax Deductions for rental homes

Sparkrental - 16 deductions


TCT Property Management Services, LLC

2500 S Power Road #121

Mesa, AZ 85209

T: (480) 632-4222

F: (480) 632-4226

E: info@tctproperties.com

Office Hours: Monday - Thursday 8:30AM-5:00PM, Friday 8:30AM-4:00PM

Se habla EspaƱol

Jennice Doty, Designated Broker

For AFTER BUSINESS HOURS maintenance EMERGENCY, please call 480-632-4225 and the on-call property manager will assist you

Associations & Affiliations

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