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Rental Property Investing Guides & Resources …

Rental Properties, Real Estate Investing Rental Properties. By Liz Brumer-Smith. Buying rental properties can be a great real estate investment strategy.

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Real Estate 101: How Rental Income Is Taxed Millionacres

The short answer is that rental income is taxed as ordinary income. If you're in the 22% marginal tax bracket and have $5,000 in rental income to report, you’ll pay $1,100. However, there’s more to the story. Rental property owners can lower their income tax burdens in several ways. In fact, a profitable rental property might show no income

Category:  Rentals Go Rentals

How to Analyze Rental Property Investments Millionacres

One smart way to narrow down your list is by looking at each property’s gross rent multiplier. This is a property’s price expressed as a multiple of its monthly rent. For example, a property that costs $100,000 and generates $1,000 in monthly rent would have a gross rent multiplier of 100. Lower numbers are better.

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How Do Refrigerator Rentals Work

Fridge rentals can save you cash initially, but over the long haul, they'll probably cost you a lot more. Take a basic top-mount model listed on Aaron's website for example. Though the "cash price" is a mere $1,408.99 (what you'd pay to buy it outright right now), the total cost of renting to own the unit is $2,399.76 -- a difference of more

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What is Rental Arbitrage

Much like subletting, rental arbitrage is the act of renting out an already rented property. Here’s how it works: You lease a long-term rental (usually for at least a year). Then, you list that property on Airbnb, VRBO, or various other vacation rental platforms, and re-rent it out on a short-term basis to travelers.

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Can an HOA Restrict Rentals

Yes, theoretically, an HOA can ban rentals altogether, particularly if that measure is supported and/or voted in by a majority of homeowners. It’s not particularly common, and in many cases when a ban is voted in, existing homeowners and tenants get grandfathered in so no one’s current stable living situation is disrupted.

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Renting Mobile Homes as an Investment Strategy …

As far as the Internal Revenue Service (IRS) is concerned, mobile homes used as rentals are considered real property. Therefore, they follow the same 27.5-year depreciation schedule as other residential rental properties. Charles Clinton gives his opinion of mobile homes as an investment class on the Millionacres Podcast.

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Does Rent Include Utilities

They are most common in college rentals, older homes that have been divided into several apartments, and accessory units located adjacent to a main home. The Millionacres bottom line Renting an apartment or home with utilities included can be appealing to many renters, but just like with every other housing decision, there are benefits and

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What Is VRBO, and How Much Can You Make With VRBO

VRBO, part of the HomeAway company, is now the largest online vacation rental site with over one million rentals worldwide. Incepted in 1995, VRBO stands for Vacation Rentals By Owner and was one of the first companies to promote individual owners renting out their homes or properties as vacation rental listings.

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Should You Allow Pets in Rentals

Cons of allowing pets in rentals Potential damage to your property. One of the most obvious downsides to allowing pets in rentals is the potential damage they can cause to the property. They can scratch, bite, or stain the floors, walls, …

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How Does VRBO Work

Short for Vacation Rentals by Owner, VRBO is a listing site that matches folks in need of vacation rentals with property owners who have vacation homes to rent. Both individual property owners and management companies use VRBO to attract short-term tenants. When you list a home on VRBO, you'll get to set your own rates for that property.

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Hiring a Vacation Rental Management Company Millionacres

Fees for managing short-term rentals, i.e., vacation rentals, can fall anywhere in the 20% to 40% range, with the industry average ranging between 25% and 30% of rents collected. Fees for managing long-term rentals are substantially lower, at between 8% and 12% of rents collected, according to industry sources like iPropertyManagement.

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Rental Property Depreciation Rules All Investors Should

Put another way, for each full year you own a rental property, you can depreciate 3.636% of your cost basis each year. If your cost basis in a rental property is $200,000, your annual depreciation expense is $7,273. For a commercial property, divide your cost basis by 39.

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Zillow Now Charges for Rental Listings. Here's What

The platform will now charge for those listings: a whopping $9.99 per property -- per week. According to a study from Rental Beast, an online listing platform dedicated to rentals, Zillow's announcement could have a "multimillion-dollar impact" on the industry. "The new costs to a small MLS and its subscribers could be over $100,000 a year

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The Pros and Cons of Investing in Vacation Rental

Many cities, municipalities, and homeowners associations (HOAs) have strict regulations around rentals -- particularly the short-term kind. Some places ban short-term rental activity altogether, while others have rules for how long or how often a property can be rented out. Some also require certain licenses in order to operate a rental in the

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Stay Organized: A Real Estate Rental Property Spreadsheet

Step 1: Enter all the relevant information on your rental property. The first thing you're going to want to include in your real estate investment spreadsheet is all the relevant information about your rental property. Not only is it essential to keep this information close at hand for your records but a lot of it will serve as the building

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The Best Books on Rental Property Investing Millionacres

Written by long-term investor and real estate agent Mark Ferguson, Build a Rental Property Empire is a practical guidebook for beginning investors. With advice on finding, managing, and financing rentals, it covers just about every inch of the investment process. One Amazon (NASDAQ: AMZN) reviewer noted its "very conversational tone and very

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How to Calculate the Vacancy Rate for a Rental Property

Single-family properties or other rentals that have one unit for rent typically use an averaged vacancy rate. Here's how to calculate the physical vacancy rate for a single-family rental: Take the total time vacant in weeks or days over a given period -- usually one year. Divide that number by the total time the unit could've been rented.

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Ask Millionacres: How Do I Deduct a New Roof on A Rental

For residential rental properties, the depreciation period is 27.5 years, so if you spent $10,000 on the new roof, you would depreciate about $364 per year, prorated in the first year depending on what month the roof was installed. If you installed the new roof before the rental property was put into service (rented out for the first time), you

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What Is an Apartment Broker and Should You Use One

In a nutshell, an apartment broker is a type of real estate broker who acts as the middleman between prospective tenants and property owners or management companies of rental properties. Think of an apartment broker as a similar concept to a real estate agent when buying a home. You'll tell your apartment broker what you're looking for

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Rental Property Insurance: Why Landlords Need It

Investing in rental property is an excellent way to grow a real estate portfolio, enjoy tax advantages, and earn passive income.. If you've taken the time to find, buy, and manage a rental property, it's essential to protect your investment with a proper insurance policy.

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What Is Service in Lieu of Rent

Implied warranties. If you decide to commence the agreement to receive service in lieu of rent, make sure you are aware the lease agreement that you entered into with the tenant has an implied warranty of habitability and the implied warranty of fitness (even if it does not specify). In short, the implied warranty requires you, the landlord, to

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Which is Better: Flipping vs. Renting Houses Millionacres

Rentals are typically a long-term investment that can provide substantial passive income to the owner over time. Cash flow, especially creating passive income, is a significant contributor to building wealth and financial independence.

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9 Tenant Rules Every Landlord Should Enforce Millionacres

When you're a building owner or property manager, it's important to have rules and regulations for the premises laid out in the rental agreement so that all of your tenants are able to coexist peacefully and do a reasonable job of respecting one another.Having a solid set of tenant rules in place can help you avoid conflicts and complaints. It can also help ensure that your …

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Airbnb vs. VRBO: Which Is Better for Property Owners

While this site does list full-home rentals like VRBO, the site's bread and butter is single rooms. In pre-pandemic (and hopefully post-pandemic) times, Airbnb vacancies are sought after for overnight and business travel, making this a great website for property owners in big cities and metropolitan areas. But Airbnb is a great site for

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Condo vs. Single-Family Home: The Investor's Conundrum

Would you prefer to do seasonal/monthly rentals or more frequent/shorter-term? Same note about HOA bylaws, with an even stronger caveat: The shorter-term the planned rentals, the more pushback you'll get from a typical association. In a typical condominium complex, quarterly rentals are considered incredibly lenient, and annual is the norm.

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Depreciation Recapture When Selling a Rental Property

Residential rental property has a useful life of 27.5 years. This means you depreciate 3.636% of the cost basis each year. The cost basis is the amount you paid to buy the property (whether you paid cash or financed it), including sale of …

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5 New Short-Term Rental Laws You Need on Your Radar

Short-term rentals just recently became legal again in Raleigh after several years of waffling on the topic -- as well as how they should be regulated. Under the new rules, properties will need a city-issued permit and cannot be used for gatherings or parties. Hosts can lose their permit if they violate the rules twice in a 12-month period. Vermont

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Is Using a HELOC on a Rental Property a Good Idea

A HELOC can be a useful tool but is typically not going to be your go-to financing technique, especially for a long-term hold like a rental property. The variable interest rate is typically too high, besides the uncertainty that comes when it's variable. Most lenders will only offer a variable rate on equity lines, but there are some who will

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How to Start an Airbnb Business Millionacres

Most people think that if they have listed a property for short-term rent on Airbnb, then they know how to start an Airbnb business. The reality is that listing one property is a far cry from launching and maintaining a successful Airbnb business.. Famed real estate investor Robert Kiyosaki recently wrote on the topic of Airbnb, "Airbnb can be very lucrative… for the right …

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Short Term Rentals vs Long Term Tenants Millionacres

Short-term rentals come with a payment guarantee from whatever listing site you’re working with. When you’re flying solo with a long-term tenant, you don’t get that kind of protection. It doesn’t always happen, but there's a chance your tenant could fall behind on their rent or, even worse, stop paying altogether.

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How Bonus Depreciation Affects Rental Properties

How the Tax Cuts and Jobs Act changed bonus depreciation. Prior to the Tax Cuts and Jobs Act's implementation in 2018, the bonus depreciation rules allowed for 50% first-year bonus depreciation. In other words, if you spent $1,000 on a capital asset, you could use $500 of depreciation in the first year the asset was placed into service.

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Which Cities Have Restrictions on Short-term Rentals

Las Vegas, Nevada. Another hot travel destination that has placed substantial limitations on short-term rentals is the city of Las Vegas. Hosts who operate a rental in Las Vegas are required to get a business license in order to operate the property. Additionally, Las Vegas prohibits the use of short-term rentals for weddings, birthday parties

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Short-term Rental Demand Is Surging, At Least in These

Suburban and large city short-term rentals, however, are still feeling the effects of the pandemic. Suburban occupancy is down 13%, while large cities decreased a jaw-dropping 41%. It seems large-city property owners pulled back from the market, too. In April 2021, there were 40% fewer nights available in larger markets.

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A Landlords Guide to Smoking Policies for Rentals

Secondhand smoke exposure is a health risk. According to the CDC, inhaling secondhand smoke leads to an increased risk of lung cancer. In addition, it can lead to other health problems, including cardiovascular disease, respiratory infections, and asthma. In particular, it is thought to be especially harmful to children.

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Apartment Fireplace Considerations for Landlords

Fireplaces in rentals have their pros and cons, with some types proving to be safer and more energy efficient than others. Put Real Estate’s “Unfair Advantages” to Work for Your Portfolio Become a member of Real Estate Winners and learn how you can start earning institutional-quality returns with less than $1,000.

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Airbnb vs. Renting: A Side-By-Side Comparison for

1. Rental agreement length. First and foremost, the main difference between an Airbnb listing and a traditional rental is the length of the rental agreement. Put simply, Airbnb is most often used as a short-term vacation rental. It works more …

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Short-Term Rental Demand Surpasses 2019 Numbers -- but

There’s no doubt about it: Short-term rentals have officially bounced back (and then some) from the pandemic. According to the latest data from AirDNA, a short-term rental data firm, demand for short-term rentals is now up 66.4% over 2020’s numbers as of April 2021 and 5.4% compared to 2019.The only problem? There’s just not enough supply to meet it.

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What Landlords Should Do for Fire Safety in Rental

Here are some safety tips for landlords and their rental properties: Maintain appliances. Many home fires start because of faulty appliances. In fact, the Electrical Safety Foundation International reports that over 50,000 electrical fires happen every year, resulting in around $1.3 billion in property damage. Repair or replace heaters.

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What Is Churn Rate

In business, the term churn rate is used to discuss the retention rate of a business. Specifically, churn rates refer to the number of lost customers that a company endures during a set period of time. Often, companies will calculate both a monthly churn rate and an annual churn rate as a means of tracking customer satisfaction.

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Airbnb Alternatives: Other Short Term Rental Platforms

Vacasa provides tools to help you find solid income-generating rental real estate in the first place. The platform also offers digital marketing and promotes its listings on other short-term rental platforms, including Airbnb, VRBO, HomeAway, and more, and it has built-in guest screening tools to protect both you and your investments.

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Can You Airbnb a Rental Property

Today, Airbnb is worth about $38 billion, and more than 150 million people use the website to book accommodations when they vacation and staycation. In fact, there are entire businesses based on the concept of Airbnb rentals, and the company has changed the face of the vacation rental and short-term rental industries forever.

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