If you are the least bit concerned about the management of your investment property ,remember the old adage, “Where there is smoke, there is fire!” Nine times out of ten when there is a significant lack of communication, if the results in your monthly statements continue to disappoint, and if your property manager has overpromised and under-delivered, it is time to say good-bye.
The cost of hiring a property management company to handle investment properties is significantly less than most property owners believe. Investment property owners who manage their own property with the idea that property management costs are too much might be mistaken as to the actual real costs.
Additionally, a large percentage of property owners do not take advantage of all of the tax strategies available to them. For example, if a property owner manages their investment portfolio out of their home office there may be some business related items they are not expensing. Interest in all forms including mortgage interest, equity lines of credit interest, and any business loan interest are all expenses which are typically deductible. Losses like casualties, disasters, and thefts are expenses which properly accounted for are deductible.
The most overlooked deduction is depreciation on investment properties, and for real estate professionals as defined by IRC 179, an investment property owner can supercharge their depreciation deductions. To maximize one’s return on investment each property owner should educate themselves about tax strategies, and thoroughly evaluate their entire tax planning roadmap with a tax attorney or competent certified public accountant.
Withholding of a tenant’s security deposit is probably the number one reason a property manager can end up on the other end of a lawsuit or even in court.
There are many precautions and procedures which a prudent property management company or property manager can implement which will help prevent this situation from occurring. Moreover, a property management course or continuing education in the nuances of proper statutory procedures can go a long way in preventing a lawsuit and subsequent lost time, energy and even money. Finally, an owner is responsible for the acts of a property manager and could find themselves in court as well if the property manager has violated the law, has not properly counseled the owner or properly handled the tenant’s security deposit.
If you are planning any renovations to your investment or rental properties in the near future you should consider going as green as possible. Improving your investment property’s Eco Performance has monetary and intangible benefits as well. You can ask your property management to help you along with using some of the helpful information in this quick guide.
When buying an asset investment property, the most important decision is whether or not to hire a professional property manager to manage the property or to manage it yourself.
Most landlords have professional property managers manage their income or investment properties. It makes sense, correct? An investment property is a precious asset – just like 100,000 shares of a Fortune 500 company. Unless your profession is property management it is likely that you would not be as efficient or knowledgeable as someone who made property management their business.
Silicon Valley Property Management Group was founded with the intent of becoming a provider of world-class service in the property management business. Our innovative business model integrates the latest technological advances to dramatically improve the customer service and management disciplines of the property management industry at a local level. This professional approach and our commitment to maximizing the property owner’s return on investment makes us one of the most respected and trusted local property management companies.
Importantly, Silicon Valley Property Management Group is a full service real estate company serving all of the real estate needs of all clients including property and asset management, property and asset investment, real estate sales, real estate development, and strategic planning.