Tax Advice: 5 Ways Property Management Saves Money

tax adviceLooking for an even higher return on your 2017 taxes?


Property investments already give you tax breaks. But did you know that they can actually also save you money over time? By choosing property management, you can turn next year’s tax season into a greener season.

Read on to learn how property management can save you money, and then take a look at how you can add more dollars to your account once tax time rolls around.

1. Claim more deductions when you file this year’s taxes

There are many benefits to hiring outside management services to take care of your investment properties.

At the top of the list is the fact that all of the fees associated with management services are tax-deductible. This is because you can claim a deduction for any fees required to maintain and manage your investment property. Hiring management services means a much lower overall tax bill.

It’s important to create a solid paper trail of all of these fees and exchanges once you do take on management services. This way you can back up your claims when you file your taxes as a landlord.

2. Increase your overall investment value

A management team will take care of maintenance and residential updates of all kinds. With management services, your properties are much more likely to maintain quality and, as a result, increase in value.

By choosing property management, you are maximizing future ROI.

3. Save money on fewer maintenance costs

A management team will stay on top of all repairs needed in your investment repairs and make sure quality maintenance is performed to prevent further issues. This is especially important if you manage pet-friendly properties.

Additionally, management services will include a more rigorous tenant screening process. This is more likely to bring about tenants who are respectful of your property and less likely to incur damage.

4. Have guaranteed rent collection

As a landlord, you have to know that you’ll be receiving rent in full and on time from each of your tenants. This is essential cash flow that keeps your investment properties and your income afloat.

Sometimes it can be tricky to find tenants who will pay in full and on time consistently. A property management company can enforce timely rent collection and take care of any evictions as necessary.

5. Keep your documents organized

One of the biggest benefits of hiring a management company to take care of residential services is the fact that you’ll have documentation for everything.

You can navigate any legal situations that arrive seamlessly, claim the highest possible deductions on your tax bill, and keep tabs on all investment paperwork through your management company.

Over time, having this safeguard of documentation will ensure that you don’t lose money through difficult legal situations or poor tax filing.

Get the Best Tax Advice and Property Management Solutions

There are many benefits to hiring property management services to assist you with your investments.

At the top of the list are all of the things that will save you money in the end and land you a lower tax bill. These include organized documentation, guaranteed rent collection, and lower maintenance costs.

At the end of the day, we are here to help you save the most money and maintain professional, high-quality properties. Contact us today to let us know how we can meet your management needs!