Before entering the new year, as a landlord, it’s important to ensure that you have all the information to make the right decisions about your rental property. Enlist the help of a property manager and ask them these five questions.
What Maintenance Upgrades Will Help Increase Revenue or Ensure Code Compliance?
Preventative maintenance is when a property has regularly performed maintenance checks, repairs, and upgrades to lessen the risk of unexpected failures in the future. These upgrades will not only increase revenue but will also make sure that your property complies with state codes. Some examples of upgrades that could increase your rental property range from the following:
- Investing in smart home appliances
- Adding advanced security features
- Offering low-maintenance landscaping
- Making modern bathroom and kitchen updates
Our team at Thayer & Associates will save you time, effort, and money through preventative and routine maintenance, including 24/7 emergency coverage during holidays and off-hours.
Do I Have All Documents & Receipts Needed for Tax Preparation Purposes?
At the end of the year, you will need to stay updated on your property’s taxes from federal taxes, state taxes, and real estate taxes. You will need documentation such as Form 1099, Form 1040, and Form 8825. A property manager can help act as a tax accountant or find one for you to ensure that you are filing your taxes correctly. With help from your property manager, you can also claim potential tax deductions.
Do the Current Tenants Have Renter’s Insurance?
While rental insurance is not required by law in Massachusetts, there are many landlords that require tenants to have it. Renter’s insurance policies will cover items like electronics, clothing, appliances, and furniture, in case they get damaged or lost. Landlords are legally allowed to require this kind of insurance for their renters as part of a lease agreement. This kind of insurance can help you and your tenant in the case that things within their property do get damaged or stolen. Property managers will have records on file to determine whether your current tenant holds insurance; from there you can make a decision on whether you will require it or not.
Is there Room to Increase the Rental Rate?
According to Massachusetts laws, there is no legal limit to the amount of rent a landlord can charge. However, for a rent increase to be valid, a landlord must provide the tenant proper notice of the raise in rent and the tenant must agree to it. A property manager can work with you on documentation on how to approach rental rates if that is what you would like to accomplish for the following year.
Do I Need to Renew Any Licenses?
While there is no licensing requirement for landlords in Massachusetts, there are several rules and regulations to follow in order to prevent tenant action or legal penalties. These rules can differ based on the kind of rental property. Seek advice from your property manager on what licenses or rules are necessary. Thayer & Associates offers administrative services where we will provide you with time-saving government compliance monitoring that ensures that you are following the correct protocols.
Property managers work for you to provide all the necessary tools and resources you need.