http://www.landlord-success.com/real-estate-investing/the-economys-effect-on-rental-property How to be a successful landlord Fri, 16 Dec 2011 08:32:15 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.landlord-success.com/real-estate-investing/the-economys-effect-on-rental-property/comment-page-1#comment-36957 andy Sun, 25 Jan 2009 20:43:12 +0000 http://www.landlord-success.com/?p=355#comment-36957 Remember the IRS rule on last months rent? If you require a "Last Month's Rent" you must consider it as "Advanced Rent" and claim it as income in the year it was recieved. Don't forget it!! the penalities could get out of hand. In addition, if you allow any tenant to use their security deposit as their last months rent, you must also cosider the security deposit as advanced rent and claim it as income the year it was received. A security deposit is just that, and dont get caught up in using it as a cash flow tool. During recent refinancing and a new rental purchase, the mortgage company was very interested in the deposits requiring a seperate checking or saving account for that money or counting it against me as a debt or unfunded liability even when our checking account balance was very high due in part to property taxes we pay outside of escrow. So put your deposits and other funded liabilities (such as prorated monthly property taxes) in a seperate account these days because it makes these underwriting programs function much easier when you go for financing of any kind. Remember the IRS rule on last months rent? If you require a “Last Month’s Rent” you must consider it as “Advanced Rent” and claim it as income in the year it was recieved. Don’t forget it!! the penalities could get out of hand. In addition, if you allow any tenant to use their security deposit as their last months rent, you must also cosider the security deposit as advanced rent and claim it as income the year it was received. A security deposit is just that, and dont get caught up in using it as a cash flow tool. During recent refinancing and a new rental purchase, the mortgage company was very interested in the deposits requiring a seperate checking or saving account for that money or counting it against me as a debt or unfunded liability even when our checking account balance was very high due in part to property taxes we pay outside of escrow. So put your deposits and other funded liabilities (such as prorated monthly property taxes) in a seperate account these days because it makes these underwriting programs function much easier when you go for financing of any kind.

]]> http://www.landlord-success.com/real-estate-investing/the-economys-effect-on-rental-property/comment-page-1#comment-35989 Boomer Sun, 11 Jan 2009 23:37:02 +0000 http://www.landlord-success.com/?p=355#comment-35989 Good tips, all. Interesting about the depressed rents in FL. Here in the Seattle area we're experiencing high demand for rentals but the demand here is chasing fewer units; we (thankfully) haven't experienced the RE downturn to the extent of other areas of the country. Good tips, all. Interesting about the depressed rents in FL. Here in the Seattle area we’re experiencing high demand for rentals but the demand here is chasing fewer units; we (thankfully) haven’t experienced the RE downturn to the extent of other areas of the country.

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