Property Management Blog

Property management Portsmouth VA : Tax tips for landlords

By KRS Holdings Wednesday, February 24, 2016
Property management Portsmouth VA companies urge landlords to keep accurate records on their costs, income and expenses. One can make use of tax spreadsheet software for doing so. Here is a list of things one should maintain:
  1. records of the purchase price of the property (condo, apartment etc) you are renting out.
  2. Accumulated as well as yearly deprecation of the property.
  3. rental income as well as security and cleaning deposits collected.
  4. commissions and property management fees you have paid
  5. advertising, marketing costs
  6. cleaning, repairs and maintenance costs
  7. HOA dues, insurance expenses
  8. taxes and mortgage interest expenditure
  9. utilities, landscaping, and other expenses
It is essential that you maintain meticulous records of these incomes and expenses. If possible you can even make use of property management software or computer spreadsheets. This way you can quickly track, maintain and generate annual reports with ease. Renting properties is a good source of passive income even when you set aside amounts for paying managers and repairing and sprucing of the property. This is a profitable venture since in most cases the rental income is sufficient to pay the amounts in mortgage, taxes, repairs and insurance etc. The law also provides tax relief for landlords who opt to rent properties instead of using them for personal residence.

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