While tax returns aren’t due until April, to minimize your tax headaches several you should get started well advance of the deadline according to Stephanie Phillips, our team's accountant. With years of experience assisting rental property owners, Stephanie suggests that deducting every possible expense this year could be more important than ever, especially if you’re affected by the new Affordable Healthcare Act tax.
Under the Act, if your modified adjusted income exceeds $250,000 (filing jointly) then you’ll pay an additional 3.8% tax on any rental income or other passive income above that amount. Rental property expenses are deductible only in the year they are paid, so December was your last chance to pay for any rental property-related expenses that you want to deduct in 2013. So keep this in mind for 2014 -- you can pay your expenses in advance.
As far as rental income is concerned,...
Setting the right rent can be one of the most difficult areas for many people who are investing in or currently own Atlanta rental property. If your property rents out in no time, it could be an indication that you are not charging enough rent. On the other hand, if your property seems to take a long time to rent out, it could be a clear indication that your rent is too high. So, how do you go about setting a rental rate that is in line with the current market?
One of the best places to start is the local newspaper classifieds. It is imperative that you do some research to find out what rent prices are driving the local market. Location is the most important factor in determining rental rates. For example, a three bedroom, two bath renovated bungalow in Kirkwood may rent for $1400 a month while a similar property around the corner in Oakhurst may only be able to draw $2300 per month.
The internet is another good resource to research...
The ultimate goal of investing in Atlanta rental property is to turn a profit. To ensure that your rental property remains a profit turning asset it's essential that you follow several critical guidelines.
First, always make sure that you check tenant references. This can be a burdensome step and many landlords overlook it because they feel as though they have good instinct when they meet with the tenant. But not checking references can lead to a number of problems later on. You will uncover a wealth of information about potential problems before you rent to a prospective tenant.
Second, make sure you have everything in writing. This is to protect your rights as a landlord as well as the rights of your tenants. Everything from the code of conduct you expect your tenants to abide by while renting your property to the rental application itself must be in writing.
Third, you will find that you have better success with your Atlanta...