By Salvatore J. Friscia, San Diego Premier Property Management, San Diego, CA

The landlord won’t make timely repairs, the common area laundry room is a mess, or the management company never answers their phones. Three very common complaints found online from renters regarding their experience with property management companies across the country. In the past, potential applicants would only discover these complaints by either word of mouth, knowing someone in the complex, or worse, once it’s too late and they were already experiencing issues first hand. Well, social media has certainly changed that, and with a click of a mouse (or should I say the pressing of a finger against the touch screen), past and present tenants can now comment on their rental experience. Power sites such as Yelp, Kudzu, Angie’s List, and of course Facebook and Twitter, are open forums respected by many that allow reviews, dialogue, and comments that in some cases can have lasting and serious consequences whether good or bad to the property management company against which they are levied. This form of feedback and review seems fair and useful in helping determine which property management companies have built better tenant relations. But should tenants beware when posting something less flattering or even downright negative regarding their experience with a property management company?

Just recently a woman, Helen Maslona of Chicago, was sued over her posting of a negative online review about a contractor on a leading online review website. These types of lawsuits are becoming more common and are referred to as SLAPP lawsuits (Strategic Lawsuits Against Public Participation). As many as 27 states have Anti-SLAPP laws, but many don’t and leave unsuspecting reviewers vulnerable to backlash from their comment or review. If you plan on making comments or reviews, it is suggested that you take a few things into consideration to protect yourself and also offer the best online review to the public.

1) Tell the truth about the experience.
2) Comment with the intent to help others benefit from your review.
3) Stay clear of vulgarities, heavy opinions, and accusations.

If you do find yourself posting a negative review, allow the property management company to respond and hopefully clear up the misunderstanding. Most reputable companies will try to accommodate their tenants and preserve their online reputation. In kind, make sure you follow up that negative comment with an update showing the resolution. Just remember that reviews on social media sites are both necessary and important but can have consequences, so be careful what you post out there.

By Colin McCarthy, J.D., Robinson & Wood, San Jose, CA

I once lived in a house in downtown San Jose that was next to an abandoned “historic” house. The house was only abandoned because it was “historic.” The city had an ordinance that prevented the owner from demolishing the building and rebuilding it, or selling it. Because the house was built before a certain time, the city ordinance prohibited him from doing anything with the property other than fixing it up. Rather than doing that, in protest, he did nothing with the property. And I mean nothing, other than board it up.

Mistake! You see it was downtown San Jose. It was right in the middle of urban, night time activities. The abandoned home soon became a sort of an attractive spot for the seedier and less fortunate souls. We frequently had to call the police. There were the typical late night guests, drinking, broken glass, and other non-printable activities going on in there. After enough of these visits, the neighbors reported the landlord to the city, and hearings were held. Fines were levied. Landlords got mad. Fences were put up.

Pulling the restrictive ordinance and the obstinacy of the landlord out of the equation, the landlord had a duty to know what was going on at his property. He should have inspected it, even if he did not have tenants.

What kinds of things can happen, from a legal perspective, if you do not inspect and repair? What will happen if the property falls into disrepair under your watch? Well, you can be sued for breach of contract. But if it gets really bad, you can be sued for a tort, too. How about for emotional distressed caused by an uninhabitable residence? For unfair business practices?

At least in California you can. Consider the facts in a case we cited in a recent post:

“Regarding the condition of the subject premises, appellant alleged that: ‘On or about October 8, 1974, to the present, numerous defective and dangerous conditions were in existence, including, but not limited to leaking of sewage from the bathroom plumbing; defective and dangerous electrical wiring; structural weaknesses in the walls; deteriorated flooring; falling ceiling; leaking roof; dilapidated doors; broken windows; and other unsafe and dangerous conditions. These defective conditions were unknown to plaintiff at the time she moved in to the premises, but as she continued to live on the premises, she became increasingly aware of them.” (Italics added.)

Also attached to the complaint was a copy of the Kern County Health Department’s notice to vacate and demolish the subject premises, which listed the following violations among others: heavy cockroach infestation, broken interior walls, broken deteriorated flooring on front porch, falling ceiling, deteriorated, overfused electrical wiring, lack of proper plumbing connection to sewage system in bathroom, sewage under bathroom floor, leaking roof, broken windows, and fire hazard.”*

Pretty bad, no doubt. But this particular landlord was sued not only for rent, but for the intentional infliction of emotional distress the tenant suffered. She repeatedly asked for repairs and informed the landlord of these problems. He did nothing. She informed him again. He did nothing. She did what all smart people do in such circumstances. She talked to a lawyer and sued.

At first it did not look good. The trial court limited her to breach of implied warranty of habitability, and limited her damages to rent payment. The appellate court disagreed, and allowed her to sue for all manner of civil wrongs related to the landlord’s alleged intentional neglect.

And although it’s not a discussion for this post, most insurance policies do not cover damages caused by intentional conduct. So not only was this landlord being sued, his insurance company might not have paid for any award against him.

So remember. If a tenant asks for a repair, don’t ignore. Inspect.

*Stoiber v. Honeychuck, 101 Cal. App. 3d 903, 912 (1980)

This blog submission is only for purposes of disseminating information. It does not constitute legal advice. The statements in these blog submissions do not necessarily reflect the opinions of Robinson & Wood, Inc. or its clients. No attorney-client relationship is formed by virtue of reading this blog entry or submitting a comment thereto. If you need legal advice, please hire a licensed attorney in your state.

By Colin McCarthy, J.D., Robinson & Wood, San Jose, CA

I enjoyed philosophy classes in college. I enjoyed thinking about such questions, as: If a tree falls in the forest and no one hears it, does it make a sound? I enjoyed even more Bart Simpson’s reply to the question: What is the sound of one hand clapping? (He immediately held up his one hand and patted his fingers against his palm, making a muted clapping sound).

My enjoyment of these questions has found a natural outlet in the law. The law ostensibly provides you with an answer, whether it be found in a book, or in a code section, or recommended by experts. So it is one of those questions today that is our focus: If a tenant hurts himself in an apartment and the landlord did not know about the condition which caused the injury, was the landlord at fault?

As is always the case, the answer in law is perfectly clear: it depends. There is a duty to inspect premises when the property is given to the tenant. Landlords are in the best position to assess the relative safety of the property before the tenant takes control, so they should inspect and repair as needed. The inspection should comport with general negligence principles – i.e. be “reasonable” and make it “reasonably safe.” *

Yes, but how do we know if it is reasonable? Well that answer is clear and simple and straightforward: it depends. It depends on the facts of your case! In California:

“The burden of reducing or avoiding the risk and the likelihood of injury will affect the determination of what constitutes a reasonable inspection. The landlord’s obligation is only to do what is reasonable under the circumstances. The landlord need not take extraordinary measures or make unreasonable expenditures of time and money in trying to discover hazards unless the circumstances so warrant.”**

Clear as mud, right? So we fall back on common sense. If you are intimately familiar with the property you are about to rent – having lived there for five years – your duty to inspect probably is not great. You know what works, what does not, what is likely to injure (hopefully not much), and what is not. You know where the cracks in the slab in the garage are. In contrast, if you are not familiar with the property, you ought to conduct a more thorough inspection. If you just bought the property and have not had extensive time with it, you might consider a more thorough inspection. You might document what you find and give it to the tenant in writing, or repair as required.

Obviously, as we’ve discussed previously, if the inspection uncovers something dangerous, you ought to repair the condition before giving possession to the tenant. But if there is an open and obvious condition that is itself a warning to and is patent to the tenant that it is dangerous, the landlord might not be liable for any resultant injuries.

And further, if one possesses legal title but does not yet have control – that key word in our liability analysis – they cannot be held liable for injuries. If they have no opportunity to inspect and/or repair, their liability is usually precluded.

*Swanberg v. O’Mectin, 157 CA3d 325 (1984)

**Mora v. Baker Commodities, Inc., 210 Cal. App.3d 771, 782 (1989)

This blog submission is only for purposes of disseminating information. It does not constitute legal advice. The statements in these blog submissions do not necessarily reflect the opinions of Robinson & Wood, Inc. or its clients. No attorney-client relationship is formed by virtue of reading this blog entry or submitting a comment thereto. If you need legal advice, please hire a licensed attorney in your state.

Time is of the essence in the property management business. Let’s face it, there are just never enough hours in the day to get everything accomplished. So, for many, the notion of taking time out for training and other sorts of continued education (whether it be about real estate rules and regulations or maintenance tasks) seems like a nice idea, but also completely unrealistic.

When considering such matters, though, it’s important to apply a bit of foresight to the decision-making process. Following are just a few examples of common property management scenarios where spending time up front might just save you a whole lot of time (and sometimes money) in the long-run.

Computer and Software Training
Incorporating financial and record-keeping software into your property management program can save you a ton of time in the long run, whittling formerly drawn-out tasks such as rent collection, payment recording, and maintenance tracking down to just a few clicks of the mouse. But installing new property management software and learning how to navigate it can be a daunting prospect. Taking time to learn the ins and outs of navigating office software that automates tasks and keeps electronic records is always time well spent. You’ll literally save yourself hundreds of hours down the line.

Learning Basic DIY Tasks
Having a stable of good repairmen to call when the need arises is crucial to keeping your tenants happy. And, certainly, you should always call in the experts when it comes to major or complex repairs. But the truth of the matter is, there are just some things you can do on your own. And, in some cases, it’s quicker and cheaper to take care of minor glitches and quick-fixes on your own. Consider investing your time in learning some basic DIY tricks of the trade so that when small repairs come up you can take care of your tenants quickly and inexpensively.

Organizing Your Office
No one works well in a cluttered environment. And even if you think you do, chances are you’ll save yourself a whole lot of time in the long run if you know exactly where to locate a file or document when you’re looking for it. Investing a bit of time into office organization is one of those things a lot of us think about, but few of us rarely do. Setting aside a half-day every quarter to really get things organized will make everything run smoother in the long-run. And the truth is, most of us are more likely to keep things organized once they’re already tidy. The more diligent you are about organizing on a regular basis, the smoother everything will run and the less you’ll actually have to do once that next organization day rolls around.

Ultimately, think of your time as an investment. Just as you sometimes have to spend a little money to increase the value of your property, sometimes you have to spend a little time to increase the value of your business.

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When it comes to tiny property repairs, a molehill can very easily become a mountain if it’s not resolved quickly. Whether you’re a DIY kind of person or would prefer to have a contractor or handyman take care of your property’s repairs, time is of the essence. Not only is it important to take care of repairs and maintenance quickly for your tenants’ sakes, but also for your bank account’s. In so many cases, a little problem that goes unaddressed can turn into a big, expensive problem not so far down the line.

Budget for the unexpected.
As we’ve discussed before, setting money aside for those unexpected repairs that always come up sooner or later is one of the smartest moves you can make as a landlord. No matter how good your intentions are, it’s almost impossible to move on any repair quickly if the funding simply isn’t there.

Move quickly, no matter how innocent an issue appears.
Cracked plaster? Leaking roof? Chipped window? All of these are examples of “little” issues that are easy to set aside, but will only grow with time. Cracked plaster can easily begin to crumble, resulting in a much bigger mess. A leak can expand and run rampant, causing significant water damage. A tiny window chip can quickly spread, leaving no other option than a complete window replacement.

Maintenance and small repairs go hand-in-hand.
There are some maintenance duties that count just as much as repairs, and should be performed just as efficiently. Cleaning gutters on a bi-annual basis, for example, is critical. Sure, it may not seem like the most pressing job, but you’ll save yourself a lot of money in the long run. Other regular maintenance work that staves off big repairs includes: draining your water heater (once a year); cleaning stove grease filters (every time a tenant moves out); and turning off the water for exterior water faucets (every year when the temperature dips below freezing).

Keep the basics on-hand.
If you choose to take the DIY route when it comes to repairs and maintenance, make sure you have the basic tools you’ll need to complete a range of tasks on-hand. You’ll be much more likely to take care of things quickly if everything you need to do it is easily accessible. Click here for tips on putting a basic home repair tool kit together—and, of course, you can add to this kit over time.

Have a professional in mind ahead of time.
Much as it pays to budget for problems before they happen, it also pays to research handyman and contractor options ahead of time. If you already know exactly who the man for the job is, you won’t have to waste any time once the need for a repair crops up.

Repairs don’t have to be a big deal. But they may well become one if not addressed in a timely manner. Having a plan of action in place before repair items ever arise and a no-holds-barred attitude about addressing them immediately is a great way to save yourself a lot of money in the long-run.

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When it comes to selecting an investment property, there are a few issues that every landlord must take into account. No matter how wonderful a property is or how eager you are to invest, never make a property investment without carefully evaluating the following items on your property investment checklist.

1. Calculate your profitability.
Although determining the likely profitability of an investment property may seem like a given, you might be surprised how many investors find themselves in a losing situation simply because they fail to do the math. Before buying an investment property at any price point, be sure you carefully determine how much rental income you are likely to generate on an annual basis. Weigh this against not only your mortgage and property taxes, but also all of the other costs that are likely to occur over the course of a year, such as advertising vacancies and doing general repairs and maintenance.

When calculating these costs, be conservative when estimating income and err towards over-estimating your outgoing expenses. You want to make sure you have enough wiggle room in your profit margins to afford your investment property payments no matter what unforeseen events may unfold in a given year.

About.com’s real estate business page offers some great calculation tools that will help you calculate your risk based on several different variables.

2. Get inside renters’ minds.
Sure, you’re the one who’s purchasing the investment property but never forget that you are purchasing it for the purpose of renting it out to tenants. Which means that while you obviously have to make a pragmatic investment decision, you also have to think like a renter. Take a long hard look at exactly what sort of properties seem to be the most desirable in your area. Evaluate things like number of bedrooms, location, square footage, and other amenities. Knowing what renters want ahead of time helps guarantee that you won’t struggle to fill vacancies or be forced to settle for less desirable tenants later down the line.

3. Think long-term.
Will this property still be good a few years down the line? Remember, when it comes to investments, you’re not only investing in your financial well-being—you’re also investing in your future. Which is why it’s so important to take a good, hard look at long-term trends in areas you are considering. Look at city and county records to see how the neighborhood you’re looking at buying into is trending. Have properties been increasing or decreasing in value over the past five or ten years? How about crime rates? Has the demographic remained stable over the past decade or has it evolved (for instance, are residents generally shifting from families to young, single occupants)?

While no one can predict the future, much can be learned from the past. Make sure that you know exactly what direction the neighborhood you’re thinking about buying is headed.

Checking these few items off your Property Investment Checklist can make all the difference between a good investment and a bad one.

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Having a good stable of contractors at your disposal is one of the more underrated tools for property management success. Following are some points to consider and a few tips for finding contractors that will make you (and your property) look good.

As a property manager, you’re not expected to know how to solve every single issue that arises under your watch. But you are expected to know exactly who to go to when problems occur. Contracted specialists are crucial to your business for a couple of reasons:

1. You want your tenants to feel taken care of at all times. From a renters’ standpoint, one of the biggest benefits of renting is that the responsibility for repairs and maintenance falls on someone else’s shoulders. One of the best ways to earn your tenants’ trust and loyalty is to demonstrate that you are reliable when it comes to resolving any necessary repairs as efficiently as possible. It’s also important that these problems are solved correctly the first time.

2. Fixing problems as soon as they arise is one of the best ways to save money in the long run. When there are dozens of things to address on a daily basis, it can be so tempting to let that dripping pipe or cracked window wait until next week. In property management, though, putting things off is never a wise idea. A dripping pipe can turn into a water-damaged ceiling; a cracked window can turn into a full-blown window repair.

With both of these points in mind, it’s important to anticipate future needs before problems actually arise. Whether the repair you ultimately need is big or small, it will be far easier to take care of if all you have to do is pick up the phone and call a contractor with whom you already have a relationship. Not only will you spare yourself the stress of frantically trying to find someone who’s available on short notice but, chances are, in a rapid-fire situation, you will not have the time necessary to thoroughly research the best and most cost-effective person for the job. Having a pre-established relationship with a contractor also increases your odds of receiving priority treatment, which can be invaluable when a pressing situation arises. And, sooner or later, it will.

If you don’t already have a list of preferred contractors, move this to the top of your to-do list. On this list you’ll want to include specialists including: a plumber, a heating specialist (and air conditioning, if applicable), an electrician, and a handyman. Think carefully about your property’s amenities and structure and compile a list of other specialists as applicable.

As with so many other things, recommendations from people in the business and trusted friends are a good place to start. REALTORS® are often a great source for contractor recommendations because they deal with clients that need to make repairs and upgrades on a frequent basis. Also utilize reliable review sites such as Angie’s List. When you’re asking people for referrals, make sure that you inquire not only about the contractor’s pricing, but also about his efficiency, reliability, and track record in terms of getting things done right the first time.

Now that you’ve got a list, give your top candidates in each specialty a call. During this conversation, you want to ask about the contractor’s clients and his history in the business. Also be sure to get a feel for his personality. Is this someone you would feel comfortable inviting into your tenants’ apartments? Does he sound like he will have your best interests in mind? Does he appear to be knowledgeable enough in the field to get the job done right the first time?

Once you’ve found your list of preferred contractors, make sure that you remain alert once they’ve begun working for you. While you don’t want to micromanage, do be sure that you’re verifying their quality of work and efficiency. Property owners often run into trouble once they’ve become comfortable with contractors. Always check their work. It’s important to make sure that the quality of work and reliability holds up even after a contractor feels confident that he has won your business. While loyalty is desirable in business (and will likely work to your own benefit in the end), it’s also important that you remain diligent about maintaining and increasing the value of your property.

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Whether you’re in charge of managing a well-established condo association or a brand-new one, whether your membership is 5 or 50, the guidelines below will make the difference between a successful association and an unproductive one.

1. Build a community.
Sure, you’re dealing with a network of neighbors that dwell in close proximity to one another but that doesn’t necessarily mean there’s a built-in sense of community. Fostering ties between association members—and particularly condo residents—is one of the most important tasks you have to accomplish as a condo association manager. A solid community is an inherent part of any productive condo association.

2. Give everyone a voice.
Essential to a solid community is good communication. Remember that members of the association are ultimately paying for the decisions your association makes, whether they ultimately agree with them or not. Because everyone has a vested interest in the matters at hand, it’s critical that all members feel they have an equal chance to have their voice heard. While you may be the spokesperson, your biggest task is to make sure that you are representing your contingency and acting in their best interests. Which means it’s imperative that you know where everyone stands on various issues that affect the condo.  And remember, the more input you have, the more likely you are to come up with creative solutions—allowing all members to speak their mind and offer their opinions will go a long way toward ensuring everyone wins in the long-run.

Perhaps most important, foster an environment where all members listen to one another’s opinions respectfully. After all, no matter how vocal of an association you have, if no one is listening it’s all for naught in the end.

3. Communication is key.
Now that you’ve got your membership talking, you need to pull those many voices together into one decisive communal voice. As a manager, it’s your responsibility to liaise between a number of involved parties including unit owners, lessees, legal entities, real estate offices, and lending institutions. It’s up to you to make sure that everyone receives the information they need as efficiently as possible. There are a number of ways to disseminate information and you should choose whichever one works best for you and association members. And, remember, you also want to make things as easy for yourself as possible. Consider the following options for communicating with association members:

• Send out a regular newsletter (weekly, monthly, bi-monthly or quarterly—whatever makes the most sense for your association)
• Set up a website where news is posted as necessary (but if you take this route, make sure you have a web-savvy, proactive membership)
• Send out emails on an as-necessary basis (make things easy on yourself by setting up a distribution list and sending out an annual notice for email address updates)
• Organize regular meetings where everyone can come together to share information

4. Be financially savvy.
Whether you’re finding a contractor or shopping for condo insurance, do your homework and make sure you’re getting the best value possible for your association. Ask for referrals from trusted sources, request bids, and read reviews when available. And remember, the “best value” is not always the cheapest option—you’re better to pay a little more up front if it makes the difference between getting the job done right the first time and revisiting the issue in a few months or years.

5. Stay organized.
Organization is nothing short of critical to effectively managing a condo association. You’ll want to make sure that you keep meticulous records of everything—meeting minutes, important correspondence, repairs and upgrades, and financial records are just a few of the items you’ll need to track. Investing in a simple system that can be easily accessed at all times (not only by you but by all necessary parties) will ensure you stay on top of everything.

Finally, remember that even though you may be the association manager, you’re not in this alone. You have a great resource right at your fingertips—association members. They have a vested interest in making sure that the condo community, communication, finances, and records are in good shape. The more you engage your members, the better off everyone will be.

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Whether you’re dealing with a tenant who files complaints rarely or frequently, due diligence is always essential. Tracking and addressing tenant complaints in a timely manner is important not only for keeping your tenants safe and happy, but also for protecting yourself and your property in the long run.

1.    Encourage tenants to come to you.
As with maintenance, tenants should be encouraged to come to you with any complaints they may have as quickly as possible. Sure, there might be some tenants that overuse this privilege, but the vast majority will not. Provide a number they can call at all hours—and be sure the number’s voicemail includes an emergency number callers can utilize during off-hours.

2.    Create (and use) an official tenant complaint form.
Although it may seem unnecessary at times, tracking each and every tenant complaint is important. These forms will provide a record of the situation and what you did to mend it and also, in some cases, provide yet another way for you to record repairs and upgrades that have been completed in each unit. On this form you’ll want to include the date of the complaint, the tenant’s name and unit, and the nature of the complaint. You’ll also want to record resolution action items, the date the issue was resolved, and how it was resolved.

Since we just talked about eviction last week, this seems like a good time to point out that, in some states, tenants may be justified in non-payment of rent if complaints are not resolved. Tracking tenant complaints is a surefire way to make sure you avoid precisely this sort of situation.

3.    Resolve the issue as soon as possible.
Every landlord should have a list of contractors ready to call on short notice. Even though some issues are too big or complex to be fixed immediately, having loyal contractors who will push you to the top of their list should the need arise is key to resolving problems quickly. It also benefits you; in some cases, the faster a repair is made, the less damage ultimately occurs.

4.    Follow up with tenants.
Always make sure you let tenants know when a complaint has been resolved or closed out—even if the resolved issue seems like one that will be blatantly obvious to them. And if you find yourself in a situation where a complaint cannot be resolved immediately, be sure to let your tenants know that you’re on the case, where you’re at in the process, and when they can expect to have the problem remedied.

5.    Handling tenant interpersonal issues.
With all of this in mind, it’s important to remember that some tenant complaints involve interpersonal issues rather than repairs and maintenance. For example, at some point, most landlords will have to deal with tenants complaining about other noisy tenants. Although it may be uncomfortable, dealing with this sort of complaint is just as important as dealing with maintenance and repairs. Begin by speaking with the tenant in question; be sure to include a clause in your lease agreements that clearly states behavioral expectations so that you can point back to that in such situations. If the problem continues, it’s time to start writing official warnings. And if the issue still persists, you may be forced to look at alternatives such as eviction.

In the end, dealing with tenant complaints boils down to two main elements: keeping your tenants happy and keeping your property safe and in good repair. Although tenant complaints may sometimes be a bit trying, staying on top of them is always in the best interest of your business.

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Once again, it’s that time of year. While filing taxes may never be your favorite task, chances are tax season will be incrementally better the more deductions you make. The good news is that there are a lot of deductions available to property owners. But the question is: Are you taking advantage of them? According to legal publisher Nolo, “Every year, millions of landords pay more taxes on their rental income than they have to … because they fail to take advantage of all the tax deductions available.”

You don’t want to miss out on any of the deductions coming your way. To make sure you’re maximizing on deductions, be in the loop about these common deductions you can (and should!) be taking full advantage of.

Interest
This is a big one and it doesn’t apply just to the interest on your mortgage—you can also count interest on credit cards (for property-related purchases only) and on loans used to make property improvements.

Repairs
Both big and small repairs are fully tax-deductible for the year in which they are incurred. This represents a double-win for property owners—you’re simultaneously maintaining or improving the value of your property and earning a deduction while you’re at it. Just be sure that the repairs are “ordinary, necessary, and reasonable in amount.”

Contractor Work
If you needed another reason to keep careful track of your expenditures, here it is. Whenever someone performs a service to your property, his wages can be counted as a tax-deductible business expenditure.

Local Travel
This can represent a significant deduction for property owners when you consider the mileage racked up in the process of showing units to potential renters, driving around to pick up supplies, and checking in on properties. According to Nolo, you’re eligible for this deduction if you drive a car, SUV, van, pick-up, or panel truck.

You can claim this deduction by either: 1) adding up the actual expenses of gasoline, vehicle upkeep, and repairs, or 2) using the standard mileage rate (55 cents per mile for 2009, 58.5 cents per mile for July 1, 2008 through December 31, 2008, and 50.5 cents per mile for January 1, 2008 through June 30, 2008).

Enhancing Efficiency
According to the Energy Policy Act of 2005, improvements to the energy efficiency of interior lighting systems, heating, cooling, ventilation, and hot water systems are eligible for tax deductions. It’s important to note, however, that certification of energy efficiency and certain qualifications must be met in order to obtain this deduction. Specific information can be found on the IRS website.

Preserving History
If you happen to own an older building, you may just be eligible for a Rehabilitation Tax Credit. This provides a credit for 10 percent of the rehabilitation cost of buildings placed in service prior to 1936.

And if all of this still sounds a bit overwhelming, remember that your accountant’s fees count as a tax deduction as well. For more information on reporting income and expenses to the IRS, be sure to check out Real Estate Tax Tips provided by the IRS.

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