Investment Properties – How to Slash Your Rental Property Insurance Expense

Investment Properties – How to Slash Your Rental Property Insurance Expense

Investment properties can be a good source of income even in a less-than-ideal economy. A great way to maximize your profit is to keep the cost of owning the property down. One area to scrutinize is your property insurance policy. Since insurance premiums are usually higher on a rental home, it makes sense to try for the lowest rate possible and still get the coverage you need. Here are some strategies for saving money on investment property insurance.

 

One of the best ways to save money on insurance is to shop around for the best coverage at the lowest price. Try to get at least three quotes from different insurance companies, and if possible, try to speak with an agent personally, rather than just looking at figures on the internet. Some companies specialize in working with rental properties, so you may want to compare their rates with those of standard insurance companies.

Another way to lower insurance costs is to look for a higher deductible. Going from a $500 to $1,000 deductible can make quite a difference in monthly premiums. So, you’ll want to get the highest deductible that you can safely afford.

Also, be sure to inquire about any discounts the company offers. For example, insurers will usually lower premiums on houses with safety features such as smoke and carbon monoxide detectors, deadbolt locks, sprinklers and alarm systems. Certain types of roofing materials may qualify for discounts if they can withstand hail or wind damage. There may also be discounts for certain types of tenants. For example, people that are home more often, such as retirees or stay-at-home moms, may be a deterrent to burglars. They are also more likely to stop or report a fire than tenants who are often away from home. Also, be sure to check for multiple policy discounts if you own more than one property. If you haven’t filed a claim in a while, check to see if the company will lower your premiums for this reason.

Additionally, check to make sure that you are only insuring your property’s value and not the value of the actual land it is built on. For example, land is unlikely to be stolen or damaged, but your property might be. Also, make sure that you understand what you are being charged for. A policy that covers the actual cash value will pay only the cost of rebuilding at the current market value, while a policy that covers replacement costs will pay for the full cost of rebuilding the property.

Credit scores may also determine your cost, since some insurance companies will give lower rates for higher credit scores. Therefore, be sure to maintain good credit, and keep track of your credit score. Another thing to remember is that as a property owner, you do not need to insure your tenants’ personal belongings. Check to see if this option can be excluded from your policy and recommend that tenants purchase their own renter’s insurance.

 

By    Katja   Goldman

The Top 10 Apartment Resident Complaints

The Top 10 Apartment Resident Complaints

Posted: 13 Nov 2013 10:10 AM PST

When experiencing an uptick in vacancies, most property managers ask themselves what could be causing their resident to leave. Without asking former tenants directly (or waiting for a bad review) how can you discover the reason for their discontent?

Thankfully, J Turner Research, a marketing research firm serving the multifamily industry has done just that. They surveyed 10,000 U.S. apartment residents regarding their satisfaction, and have published their results by ranking the top 10 apartment resident complaints:

  1. Rental rates
  2. Poor grounds / common area upkeep
  3. Disorganized staff / lack of communication with staff
  4. Quality of response to maintenance requests
  5. Overall customer service of management staff
  6. Quality of parking / parking availability
  7. Concerns over security / safety / lighting
  8. Lack of upgraded amenities
  9. Pets not on leash / poor pet waste removal
  10. General lack of preventative maintenance

According to their findings, apartment residents across the nation have been more unhappy about rental rates than any other issue. In fact, residents mentioned the cost of rent more than twice as often as concerns about pet waste, which has been a big source of dissatisfaction in the past. Rent prices were nearly three times more likely to be cited by disgruntled tenants than noise, which surprisingly didn’t crack the top ten. This could be proof of a softening in rent fundamentals, which have been experiencing somewhat of a rebound since the country began to recover from the recession.

Aside from rental rates, residents are most often unsatisfied with on-site customer service from management professionals and members of the maintenance staff, which factored into three of the top five complaints.

How You Can Use This Information While there are a number of complaints that would be worth addressing, it seems the best opportunity to improve resident satisfaction levels is by resolving any issues with the onsite staff’s response to resident concerns. And, because the relations between residents and community staff have such an impact on the community’s reputation and online ratings, this should definitely be one of the key focus areas for multifamily properties moving forward.

Another way property managers can improve customer satisfaction is by completing any deferred maintenance, upgrading appliances, or updating amenities and common-areas. This is particularly important when a community’s curb appeal factors into online ratings and reviews.

Analysts go on to suggest that “communities with the highest levels of customer satisfaction also benefit from the best online ratings and reviews.” Therefore, as property managers continue efforts to maintain a positive reputation, it remains crucial to measure customer satisfaction—and dissatisfaction, and asses how well efforts to improve these issues are actually working.

Sara Thompson writes about property management in partnership with Zenith Properties NW, LLC in Vancouver, Washington. For more tips and advice, visit http://www.zenithpro.com/blog/.

Top Ten Tax Deductions for Landlords

Top Ten Tax Deductions for Landlords

October 17th, 2013 by Stephen Fishman
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Top Ten Tax Deductions for LandlordsNo landlord would pay more than necessary for utilities or other operating expenses for a rental property. Yet millions of landlords pay more taxes on their rental income than they have to. Why?

Rental real estate provides more tax benefits than almost any other investment.

Every year, millions of landlords pay more taxes on their rental income than they have to.  Why?  Because they fail to take advantage of all the tax deductions available for owners of rental property. Investment real estate provides more tax benefits than almost any other investment.

Often, these benefits make the difference between losing money and earning a profit on a rental property.  Here are the top ten tax deductions for owners of residential rental property:

1. Interest

Interest is often a landlord’s single biggest deductible expense. Common examples of interest that landlords can deduct include mortgage interest payments on loans used to acquire or improve rental property and interest on credit cards for goods or services used in a rental activity.

2. Depreciation

The actual cost of a house, apartment building, or other rental property is not fully deductible in the year in which you pay for it. Instead, landlords get back the cost of real estate through depreciation. This involves deducting a portion of the cost of the property over several years.

3. Repairs

The cost of repairs to rental property (provided the repairs are ordinary, necessary, and reasonable in amount) are fully deductible in the year in which they are incurred. Good examples of deductible repairs include repainting, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows.

4. Local Travel

Landlords are entitled to a tax deduction whenever they drive anywhere for their rental activity. For example, when you drive to your rental building to deal with a tenant complaint or go to the hardware store to purchase a part for a repair, you can deduct your travel expenses.

If you drive a car, SUV, van, pickup, or panel truck for your rental activity (as most landlords do), you have two options for deducting your vehicle expenses. You can:

  • deduct your actual expenses (gasoline, upkeep, repairs), or
  • use the standard mileage rate (56.5 cents per mile for 2013). To qualify for the standard mileage rate, you must use the standard mileage method the first year you use a car for your business activity. Moreover, you can’t use the standard mileage rate if you have claimed accelerated depreciation deductions in prior years, or have taken a Section 179 deduction for the vehicle.

5. Long Distance Travel

If you travel overnight for your rental activity, you can deduct your airfare, hotel bills, meals, and other expenses. If you plan your trip carefully, you can even mix landlord business with pleasure and still take a deduction.

However, IRS auditors closely scrutinize deductions for overnight travel — and many taxpayers get caught claiming these deductions without proper records to back them up. To stay within the law (and avoid unwanted attention from the IRS), you need to properly document your long distance travel expenses.

6. Home Office

Provided they meet certain minimal requirements, landlords may deduct their home office expenses from their taxable income. This deduction applies not only to space devoted to office work, but also to a workshop or any other home workspace you use for your rental business. This is true whether you own your home or apartment or are a renter.

7. Employees and Independent Contractors

Whenever you hire anyone to perform services for your rental activity, you can deduct their wages as a rental business expense. This is so whether the worker is an employee (for example, a resident manager) or an independent contractor (for example, a repair person).

8. Casualty and Theft Losses

If your rental property is damaged or destroyed from a sudden event like a fire or flood, you may be able to obtain a tax deduction for all or part of your loss. These types of losses are called casualty losses. You usually won’t be able to deduct the entire cost of property damaged or destroyed by a casualty. How much you may deduct depends on how much of your property was destroyed and whether the loss was covered by insurance.

9. Insurance

You can deduct the premiums you pay for almost any insurance for your rental activity. This includes fire, theft, and flood insurance for rental property, as well as landlord liability insurance. And if you have employees, you can deduct the cost of their health and workers’ compensation insurance.

10. Legal and Professional Services

Finally, you can deduct fees that you pay to attorneys, accountants, property management companies, real estate investment advisors, and other professionals. You can deduct these fees as operating expenses as long as the fees are paid for work related to your rental activity.

Did You Know?

Did you know that:

  • Landlords can greatly increase the depreciation deductions they receive the first few years they own rental property by using segmented depreciation.
  • Careful planning can permit you to deduct, in a single year, the cost of improvements to rental property that you would otherwise have to deduct over 27.5 years.
  • You can rent out a vacation home tax-free, in some cases.
  • Most small landlords can deduct up to $25,000 in rental property losses each year.
  • A special tax rule permits some landlords to deduct 100% of their rental property losses every year, no matter how much.
  • People who rent property to their family or friends can lose virtually all of their tax deductions.

If you didn’t know any of these facts, you could be paying far more tax than you need to.

As always, be sure to consult with your tax adviser or tax professional.

10 Housing Markets On The Rebound

10 Housing Markets On The Rebound

Posted: 12 Nov 2013 10:14 AM PST

According to a recent review of third quarter 2013 housing data by realtor.com, the housing recovery was led by a variety of cities from Detroit to Santa Barbara, CA. The survey ranked housing markets based on their inventory of available homes, average number of days that their properties are on the market and their median list prices.

Read More and View Top 10 Cities List: http://realestate.aol.com/blog/on/realtors-rebounding-us-housing-markets/#!slide=1538517

Rochester’s Best Property Management

 

 

If you don’t know why people are saying

Kendrick Property Management is Rochester’s Best

Property Management Team,  check out all of are services

and you will agree.

  1. Working with Investors to find more investment Properties.
  2. Complete Rehab of any below standard   investments
  3. In house maintenance team to keep repair cost down
  4. Marketing team to get and keep quality tenants in your rentals

See for yourself watch this short video clip below

Investment turn around

 

 

 

I GUESS NOBODY EVER TOLD THEM

 
Home Staging and Interiors
585.654.7633
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Only 20% of Real Estate Agents utilize Home Staging for their listings.

What’s wrong with everybody else?

I GUESS NOBODY EVER TOLD THEM…
Staged homes typically sell 50%
faster and for 10% more than non-staged homes.
Consultations are just $95.00.
A roadmap for your clients.  We show them EXACTLY how to ready their house for sale.  BEFORE it hits the MLS.
Most homes need less than $500. worth of staging, far less than your average price reduction!
Even a very well maintained and beautiful home could benefit from a consultation.  Will the rooms appear dark in pictures?  Have personal items been removed so buyers can envision themselves living there?
Did You Know?  Staging is more about what you don’t see sometimes.  Try removing the screens from the windows to brighten up their appearance and give the house a clean look from the street.
Many More Helpful Hints During The Staging Consultation!

 

Does your marketing need a little revamping?  Do you rely on Internet pictures that are ‘good enough?’  Do buyers breeze right by your listings?  Could every listing benefit from Home Staging and result in faster sales, larger commissions?

 

You’ll never know until you try!

See what CBS Sunday Morning thinks about Home Staging.

Staging: Home sellers' secret weapon
Stage. List. Sell.

 

FOR MODEL AND VACANT HOMES

Price and location bring interest…Staging brings offers.  Only 10% of buyers can visualize the potential of a space.  We can show them.  From selecting finishes to the completed design, we’ll have your audience sitting up and paying attention…

With resources that include the Designer’s Library and custom leasable art from Artisanworks, let us wow your buyers.  See how we do it, from concept to reality

Visit our NEW websites for more information

www.rochesternyinteriordesign.com and www.setthestagerochester.com

 View our portfolio of Before and Afters…

Set the Stage Model and Vacant Home Staging
  Rebecca has given my business a great cost effective edge to preparing a home and showing it in it’s highest light.  I’ve hired her to stage an entire home with her inventory of furnishings, as well as consulting with clients prior to listing their home.  I trust her ideas and have had great results with Set The Stage.

I would recommend Set The Stage to anyone…

 

                                                                                                                 ~Jack R. Remax 

Set the Stage
rebecca coady
585.654.7633
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“Let us put your home in the spotlight…”

Kendrick Property Management

 

                      Kendrick Property Management

50 Kentwood Dr.

Rochester, NY 14626

585.880.4324 p

585.654.7633 f

www.kendrickpropertymanagement.com

November 7, 2013

Solutions for your Investment Property.  But don’t trust us…Well not yet anyway!

Are you a landlord with an investment property in Rochester, NY that has become unmanageable?  Are you in financial distress because of your mortgage?  We are a local property management company that can offer you a SOLUTION to your problem property.  We are unique!  We offer MANY solutions for your specific needs.

Keep your investment; change your Property Management Co.

With a real-time propertyware system and in-house maintenance, communication with our owners is unparalleled.  Approve work orders, view conversations from your management team, and receive detailed monthly statements.  With a 6 month rental guarantee and your first month of management FREE, LET US WORK FOR YOUR TRUST.

Just need to sell quickly?

Sometimes the best solution for a bad investment is to cut your losses.  At KPM, we understand that some landlords just need to stop the hemorrhaging!  Expensive repairs, high vacancy rates, and poor management can have a devastating effect on your investment.   We work with local wholesalers to move your property FAST.  With an extensive buyer’s list and over 25 years of experience, your property can quickly become a worthwhile investment for the next owner.

Let us negotiate with your lender.

In today’s Real Estate market, some investors find themselves ‘upside-down’ on their mortgage.  Let us work with your bank to find the best solution for you.  Short Sales, loan modification, or a deed in lieu; understand ALL of your options.

Ready for an investment that performs?

With proformas that estimate your ‘real world’ return on investment, and FREE property evaluations, you’re never left wondering if you’re making a wise purchase.  With high capitalization rates and special programs like Rent to Own, you can’t beat our investment advice!  Just listen to our investors… From property management, to buying and selling, Kendrick Property Management will be your BEST investment yet.

James Kendrick  was one of the first people I partnered with in my real estate investing company. He has the experience and the integrity and the network to accomplish anything he sets out to do. Great to work with, keeps projects on time and on budget. Looking forward to many more investments with James.”

~ Judi W.

Call today for YOUR property management solution, or visit our website for more information.

Kendrick Property Management

585.880.4324   www.kendrickpropertymanagement.com

The Things Property Managers Hate To Do

The Things Property Managers Hate To Do

Posted: 06 Nov 2013 09:10 AM PST

While most of us enjoy our job, and wouldn’t dream of trading it for another; there are some things that most property managers absolutely hate to do. While we love meeting new people and enjoy helping them find their perfect home, there are some things that go along with the job many of us hate doing.

Here is a list of some of those things along with some suggestions to help minimize the pain:

  1. Rejecting an Applicant – This is never easy, particularly when it needs to be done face to face. Unfortunately, rejecting applicants is a routine part of being a property manager. If the reason is something other than a credit issue – such as insufficient income or past evictions, tell them so. Be sure to provide them with copies of their credit report so they can see the results for themselves.
  2. Evicting a tenant – Another thing that most property managers are squeamish about; though many property managers find it much easier to evict the tenant selling drugs out of their apartment than evicting the couple who recently lost their job. Whether the reason is a lease violation, or criminal activity, be sure to document your case with warning notices and give tenants the chance to correct the problem. Many times, tenants late on the rent are simply waiting for a check to come in. If you can give them a little extra time, you may find yourself with a great tenant for the long term.
  3. Dealing with criminal activity – One of our main responsibilities as property managers is to our tenants. Happily, most tenants are terrific people who pay their rent on time, go to work each day, and maintain their unit properly. In most cases they are not engaged in illegal activity. That’s why it’s imperative that any criminal activity be eliminated immediately, and those engaging in the activity dealt with properly, no exceptions. If not, you’re putting your entire tenant population at risk, which will not be forgotten at renewal time.
  4. Raising Rent – This is another reality that property managers must deal with. It’s never pleasant to impose a rental increase on your tenant, although most will understand the need for a slight increase.  Offering existing tenants a bonus such as a gift card for renewing with a rent increase can help soften the blow of a rent increase while conveying to them that they’re valued.

While you’ll likely never enjoy any of the above tasks, handling them promptly and professionally will make them a little easier to complete.

Kendrick Property Services

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Team Kendrick is a trusted name in Rochester, NY

They have been rehabbing and renovating properties for investors for years. When people recommend them three words are always included  Reliable, Honest, Integrity.  So it goes with out saying that you can expect the same from the new branch they have added,   Kendrick Property Management

 

Before

Tax lein purchase hoarder house

After

OLYMPUS DIGITAL CAMERA

OLYMPUS DIGITAL CAMERA OLYMPUS DIGITAL CAMERA OLYMPUS DIGITAL CAMERA OLYMPUS DIGITAL CAMERA OLYMPUS DIGITAL CAMERA OLYMPUS DIGITAL CAMERA OLYMPUS DIGITAL CAMERA OLYMPUS DIGITAL CAMERA OLYMPUS DIGITAL CAMERA OLYMPUS DIGITAL CAMERA

Find out what Team Kendrick can do for your Investment Properties