Revenue you receive from the occupancy or use of residential property is generally defined as the rental income. Rent, obviously, is included in that revenue.
The facts that revenue also includes rent advancements, expenses paid by a tenant, and any security deposits not returned to the tenant surprised many owners. In fact, revenue can also comprise amounts paid to cancel a lease, even if you had to sue the defendant to get it.
Tax deductions related to rental properties are noticeably similar to those found in any business. Technically, you can take away any expense quite necessary to "manage, conserve or maintain" the property.
Mortgage payments, cleaning expenses, insurance premiums, service payments such as landscape maintenance, repairs, maintenance, etc are obvious deductions.
Overlooked rental property deductions include:
- Mileage for driving to and from the property
- Depreciation of the property
- Depreciation of items in the property such as washing machines, furniture, etc.
- Imaginary Rent Deduction
- Expenses incurred in finding tenants
- Commissions paid to third parties that arrange for tenants
- Paying your accountant and/or lawyer
Managers and Rental property owners have a responsibility to protect their property, be a good neighbor, and to help protect tenants, their guests, and the public from economic loss or harm. Not only to protect assets, but also to help the lenders, insurance property is important.
If you are a landlord, the need of proper rental property insurance is necessary to cover the cost of the physical damage that can happen to your property investment in which you have only a little control.
Property investments are very common. One example of a property investment is the property - be it a house or an apartment unit - you rent to others.
Landlords can protect themselves from losses caused by many perils, including fire, storms, burglary, and vandalism, by means of a well-planned rental property insurance policy.
Comprehensive rental property insurance also includes the liability insurance and coverage for injuries or losses suffered by others. Moreover, the costs of defending personal injury lawsuits and lawyer's bills can be paid by means of the liability clause in a rental property insurance policy.
You must ensure that you have adequate coverage to protect all property values and assets, when you purchase rental property insurance. Also, be sure that the rental property insurance policy covers injury, including physical or legal, such as libel, slander, discrimination, unlawful and retaliatory eviction, and invasion of privacy.
While the landlord may have a policy protecting the structure, your personal property is not protected, and is your responsibility. In the event of a disaster, accident, or theft, the owner's coverage will not protect your personal property nor provide you with liability protection.
Further, if your guest suffers personal injury or theft of his/her personal items while in the dwelling you are renting you could be held liable.
Renter's insurance protects you from damage or destruction of personal property in the case of fire, theft, and/or vandalism. Depending on your renter's insurance policy, your coverage can be similar to homeowner's insurance, in that coverage may also extend to your personal property when it is not inside your rented dwelling.
It may even provide legal defense expenses in the case of a suit filed against you by a guest.
Renter's insurance is usually inexpensive, particularly when compared to homeowner's insurance, since you are not covering the structure, only the items within it. Moreover, you may receive a discount on your renter's insurance policy if you combine it with your auto insurance policy, or other coverage you already receive from your existing insurance carrier.
