GoRenter.com Reviews Various Real Estate Tax Deductions For Arizona Landlords.

ARIZONA PROPERTY MANAGEMENT COMPANY EXPLAINS THE TAX ADVANTAGES FOR ARIZONA RENTAL PROPERTY OWNERS

Year in and year out, landlords across the nation pay more taxes on their rental income than they should because of their failure to take advantage of all the tax deductions available to them as owners of rental property. With the current Arizona real estate market heating up due to record low home prices, more and more investors are purchasing Phoenix-Metro rental homes. And although rental real estate provides more tax benefits than almost any other investment it is up to you the landlord to find out how to take advantage of these deductions to your benefit.  For these benefits can mean the difference towards profitability, generating passive income or losing money and perpetually draining your bank accounts.  GoRenter.com, an Arizona property management company explains the different tax advantages available for landlords.

Here is laundry list of tax deductions for owners of small Arizona residential rental properties:

1. Home Office

As a landlord you may deduct your home office expenses from your taxable income, provided that it meets certain minimal requirements.  This deduction applies not only to space devoted to office work, but also to a workshop or any other home workspace you use for your rental business. Whether you own your home or reside in an apartment or as a renter, this deduction can still be applied.

2. Legal and Professional Services

In order to run a successful rental business, you will need to have a team of professionals to help you navigate the ups and downs of being a professional landlord.  From attorneys, accountants, property management companies, real estate investment advisors, and other professionals.  As long as those fees are incurred due to your rental activity they can all be deducted as operating expenses.

3. Contractors

You will have maintenance to do on your Arizona rental homes.  Whenever you hire anyone to perform services for your rental activity, get your estimates/invoices broken down into parts & labor.  You can deduct their wages as a rental business expense.

4. Repairs

Repairs are a natural part of being a landlord and those expenses are fully deductible in the year in which they take place. Fixing leaks, replacing broken windows, plastering, repainting or fixing floors are all examples of deductible repairs.

5. Insurance

Fire insurance, Theft insurance, Hazard insurance.  Almost any insurance premiums you pay for due to your rental activity are deductible.   Additionally if you have employees, the cost of their health and workers’ compensation insurance are deductible as well.

6. Casualty and Theft Losses

Casualty losses are losses incurred f your rental property is damaged or destroyed from a sudden event like a fire or flood.  If this were to occur you may be able to obtain a tax deduction for all or part of your loss. Typically you won’t be able to deduct the entire cost of property damaged or destroyed by a casualty.  How much you may deduct depends on whether the loss was covered by insurance and how much of your property was destroyed or damaged.

7. Depreciation

When you purchase a house for the purpose of turning it into a rental, the actual cost of that house is not fully deductible in the year in which you pay for it. However through depreciation, landlords get back the cost of real estate by deducting a portion of the cost of the property over several years.

8. Travel

As a Landlord you are entitled to a tax deduction whenever you drive anywhere for your rental activity.  For example, is you drive down to the supply store to pick up parts for some repairs or go “on-site” to meet  to handle a tenant dispute you can deduct your travel expenses.

You have two options for deducting your vehicle expenses. You can:

• Deduct your actual expenses (gasoline, upkeep, repairs).
• Use the standard mileage rate which is .55 cents per mile for 2009.   Be sure to consult your accountant on how to qualify for the use of the standard mileage rate.

If you travel overnight for your rental activity, airfare, hotel bills, meals, gasoline and other expenses are all deductible. In order to avoid scrutiny keep careful records of all expense incurred while you travel and back those up with the right records such as receipts.

9. Interest

Typically this can be a landlord’s single biggest deductible expense.  Interest on credit cards for goods or services used in a rental activity and mortgage interest payments on loans used to acquire or improve rental property are the two most common interests that can be taken as a deduction.

10.  Corporate Structure

While not a deduction in of itself per se, Depending on your long term investment strategy your choice of business structure helps to determine not only which tax deductions are available to you, but also how to best protect your investments.  So make sure you consult a good attorney & tax accountant in order to understand how to approach your business as a good sound real estate investment strategy.

About The Author GoRenter.com

GoRenter.com is a leading provider of professional residential property management services in the Phoenix-Metro area. We are dedicated to maximizing the return on investment for our property management clients while maintaining quality housing opportunities for our rental residents. We manage all residential rental properties including single family homes, condominiums, townhomes, and duplexes. Our mission is to offer personalized and professional service to both our clients and customers by building strong relationships, utilizing the latest technology, implementing effective marketing strategies, following consistent systems all with honesty and integrity throughout every facet of our business. We are confident that our property management team will exceed the industry standards in the services we provide. 

Interested in buying a Arizona investment properties?  Check out our revamped website GoRealEstateInvestor.com and see a HUGE inventory of available Arizona investment houses sold at wholesale prices!

GoRenter.com Is Proud To Announce Its Revamped Arizona Investment Property Website www.GoRealEstateInvestor.com.

For over two months GoRealEstateInvestor.com (sells discounted real estate in Arizona) has been under construction.  The new property wholesale website is finally here.  With a fresh new look, real estate investor online tools, discounted properties, and tons of useful investor articles and news the new site is sure to be a hit with local and out of state real estate investors looking to capitalize on the current opportunities in the Arizona real estate market.  For years GoRenter has been Arizona largest investor friendly property management company specializing in helping real estate investors mazximize their return-on-investment by finding qualified tenants quickly.  Now they are expanding their full-circle service to include helping those same investors find, analyze, purchase, repair, and rent residential and commercial properties valleywide and the timing could not have been better.

THE ARIZONA REAL ESTATE MARKET IS HAVING A FIRE SALE!!!

Thats right…never have we seen a better opportunity to capitalize on the real estate market than RIGHT NOW!  Over the last 10 months we have seen record low prices on single family residences all over the entire valley and many investors are starting to jump of the opportunity of a lifetime and own cashflowing rental properties in the Phoenix – Metro area for the first time in a long time.  GoRealEstateInvestor.com is a direct result of the sale thats happening right now.

WHAT CAN GOREALESTATEINVESTOR.COM DO FOR ME?

GoRealEstateInvestor.com simplifies the buying process by finding opportunities in the marketplace that you can purchase right now.  You see if you try and buy a short sale or bank owned home in Arizona you are competing against countless other investors and greedy banks that want a bidding war.  In many cases the low advertised price isn’t the actual final purchase price…just a teaser.  Trust us, we have chased many REO’s only to have the price bid up to the point the investment didn’t make sense anymore.  Why wait months and months waiting for an answer from a bank that wants too much money when you could buy discounted real estate from us and we will make a decision the same day!  Here are some of the reasons to buy from us:

 So if your looking for foreclosures for sale in AZ check out our new Arizona Investment Properties site and contact us at 602-512-4416 for a FREE one-on-one consultation with one of our real estate investment specialists today.

Fact: The cost to replace a tenant is more than 3 times the amount to keep one.

Fact:  Tenants are finicky and it seems like the best ones are always the ones that want to leave.

Fact:  Without long term retention you will not produce passive income and generate equity for your investment portfolio.

5 KEYS TO LONG TERM TENANT RETENTION BY ARIZONA PROPERTY MANAGEMENT COMPANY GORENTER.COM
 

Depending on what report you read, 30% to 40% of the nation’s population are renters.  Despite the sheer number of available renters, the competition to land quality, qualified tenants has never been fiercer.  So obviously it’s important to retain and keep happy a good tenant once you have them placed in your rental. 

Consider this.  Let’s pretend you have a rental property in Arizona that typically has an average rental income of $1200 a month.  Your old tenants just moved out and the average time it takes to market, find, and qualify a new tenant is around 60 days.  Let’s not forget to factor in any cleaning costs, the costs of any repairs, screening costs, and the costs of any marketing you may have to do.  Add up all the time and money this process can take and we can conservatively say these costs can be around $3500.  Unless your full time job is being a landlord, why would anyone want to run around pretending to be a money-collecting maintenance man?

The following keys you are about to read will help you to find success in generating long term rental cash flow by utilizing a professional property management company such as www.GoRenter.com. 

1)   Communication/Response Times

When a tenant has maintenance issue, be sure to respond in a timely fashion.  Do you have a 24hr call service or hotline set up & available?  Are you able to respond quickly or do you let the issue go on for several days or more.  Either handle the maintenance issue quickly or if you can’t afford to, immediately communicate to your tenant when you intend to do so.  This will go a long way towards avoiding tenant/landlord disputes.

Disputes are a going to happen given the nature of the business.  That’s okay.  Just make sure there is a system in place to address them quickly and fairly.  By establishing clear communication, it will keep all expectations above board and help to avoid resentment.

Follow up:  Keep all communications in writing.

Be sure to ask your property management company to follow up ALL verbal communication with an e-mail reiterating the key points in your conversations.  A good lead in is: I wanted to review the issue(s) discussed today as per our conversation…

When interviewing to hire a property management company in Arizona make sure to ask to meet the customer service representatives and choose the right one for you.  After all, this person will be assigned to handle your property and has a direct effect on the successful rental of your property, which in turn directly affects your long term profitability.  Ask them how do they handle resolution?  What is their system of communication and documentation?  Also don’t be afraid to ask to speak directly to tenants that have had difficult situations resolved under their guidance.  This is why GoRenter.com has an open door policy and streamlined customer service center focused on client support and fast maintenance completion.  Our belief is that the key to successful cash flowing rental starts with how a property management company handles customer service issues.

2)   Renewal Bonus

Look at what it costs to replace a tenant.  Would it hurt you to reward a tenant with a loyalty program?  For signing up for another year, offer to replace an appliance, install new carpet, or perhaps $200.00 dollars a month off for the first one or two months of their renewal.

Don’t expect your property management company to just offer these things for you carte blanche.  After all it’s your money!  As a landlord you have to;

1. be willing to enact a program.
2. be willing to ask your property manage program to help you develop this type of program.  Stop looking at what it would cost.  Consider the cost of $300 to $500 against $3500.00?  

3.)  Appreciation/Referral Program

Does your Arizona property manager treat your tenants respectfully yet firmly in a fair manner?  This concept is extremely important because as your property managers we have to handle any problems that arise with either rent collection or maintenance issues and in most cases the renters will either choose to stay or leave depending on how they are treated.  Most renters just want to be treated fairly and with respect and at GoRenter.com we understand this and always conduct business with honor, integrity, and respect.

Have an appreciation program developed through your property management company such as sending your tenants notes/cards 3 to 4 months into their rental period asking them how are we doing?  Telling them that you appreciate their choice in choosing to live in your property?  You could also end these types of communications with a P.S.  The highest compliment you could give me is a referral. 

4.)    Utilize A Rent-To-Own Or Lease Option Program

Most renters are renters for a reason.  Either they don’t have enough of a down payment to buy their own home, just moving in town from out of state and are not sure where they want to buy, or they have gone through a bankruptcy / foreclosure and have bad credit.  By offering your prospective tenants a lease option program you will find that the renter psychologically becomes a homeowner in their own mind and not only treats the property as if it is their own, but is willing to pay a higher rent and pay on time!

At GoRenter.com, we have a variety of solutions for tenants who would like to participate in a lease option program.  We strongly urge our investors to give a percentage or portion of their appreciation in the property to the tenant as an incentive for them to option the home for purchase.  Once they have entered into the option to purchase, they are now invested with you in the home and take care of it as their own as well as stay much longer than the usual tenants.  The lease option should be negotiated for each individual situation.  When you are not sure how to create a lease option program, contact a professional for guidance.

5.)  Proper Marketing & Screening

Proper marketing is an essential key step in finding the right type of tenant.  If you are marketing in the classifieds section of the newspaper you will most likely attract a certain type of tenant (one that buys and reads the newspaper).  Different from the type of tenant you would find on Craigslist.org (online) or from a referral (the best kind)!  Our point is unless you plan on paying for and implementing an aggressive marketing campaign you will have little chances of generating enough qualified prospects as you would when you hired a really good property management company with their own aggressive marketing strategy! Through property rental property marketing your chances of being able to choose the right type of tenant for you will ensure a higher tenant retention rate in the long run.

Of course just generating the prospect is only half the battle.  Once your prospects come knocking the next step is to pre-screen and qualify them to your standards.  Does your current property management company have a comprehensive application process that allows them to pull criminal background and credit information?  Do they pull not only credit reports but verify employment and income by also speaking with a potential renter’s employer instead of just relying on paystubs?  Do they verify rental history and ask for referrals from prior landlords and even roommates? 

NOBODY does more marketing for qualified tenants than the experts at GoRenter.com.  Every year we spend hundreds of thousands of dollars on print and online advertising and are currently managing over hundreds and hundreds of cash flowing rentals for our investors.  We pride ourselves on proper tenant placement so that both you as the real estate investor and the tenant can enjoy the business relationship over the life of your investment.  Aside from buying the property for the right price in the right location, finding the right tenant for your property is one of the single most important decisions to be made for the long term successful generation of passive income for your investment portfolio.
 

Arizona Property Management Company Contact Info: 

Corporate Headquarters: 645 E. Missouri Ave Suite 270 Phoenix, AZ 85012

Website: http://www.GoRenter.com

Phone number: 602-512-4406

As your property management company of choice, we are able to serve Arizona real estate investors in the following Arizona cities:

Phoenix Property Management, Mesa Property Management, Tempe Property Management, Scottsdale Property Management, Chandler Property Management, Gilbert Property Management, Glendale Property Management, Ahwatukee Property Management, Laveen Property Management, Avondale Property Management, Surprise Property Management, Anthem Property Management, Prescott Property Management, Cave Creek Property Management, Carefree Property Management, Arizona Property Management Company

Searching for a rental property in the greater Phoenix area? GoRenter.com offers plenty to choose from in the following cities:

Phoenix Homes For Rent, Mesa Homes For Rent, Tempe Homes For Rent, Chandler Homes For Rent, Gilbert Homes For Rent, Scottsdale Homes For Rent, Avondale Homes For Rent, Anthem Homes For Rent, Glendale Homes For Rent, Laveen Homes For Rent, Surprise Homes For Rent, Anthem Homes For Rent, Prescott Homes For Rent, Cave Creek Homes For Rent, Carefree Homes For Rent, Arizona Homes For Rent, Ahwatukee Homes For Rent

Also check out our Arizona investment properties website GoRealEstateInvestor.com!

 DEFINING THE PROTECTING TENANTS AT FORECLOSURE ACT

On May 20^th 2009 a new law passed by Congress and signed by President Obama provides new protections for tenants whose landlords fall into foreclosure.  The law the President has signed is the Protecting Tenants at Foreclosure Act which expands on the success of the Making Home Affordable Program first announced in February.  GoRenter.com (Arizona property management company) is happy to see this new law enacted as it provides the needed protection tenants have been lacking in the turbulent Arizona real estate market.  Berne Fleming of Gorenter.com stated, “We have worked with hundreds of tenants who have been affected by the foreclosures here in the valley and know how to help them through this difficult time.”

The protections within the new law, the Protecting Tenants at Foreclosure Act, are effective immediately and expire at the end of year 2012.  With the new law, tenants now have the right to remain in their homes after foreclosure for 90 days or through the term of their lease as long as the new buyer of the property does not intend on living in the residence.  The bill also provides similar protections to low income families holding housing vouchers.  Below is the actual law:

TITLE VII–PROTECTING TENANTS AT FORECLOSURE ACT

SEC. 701. SHORT TITLE.

This title may be cited as the ‘Protecting Tenants at Foreclosure Act of 2009′.

SEC. 702. EFFECT OF FORECLOSURE ON PREEXISTING TENANCY.

(a) In General- In the case of any foreclosure on a federally-related mortgage loan

or on any dwelling or residential real property after the date of enactment of this title, any immediate successor in interest in such property pursuant to the

foreclosure shall assume such interest subject to–

(1) the provision, by such successor in interest of a notice to vacate to any

bona fide tenant at least 90 days before the effective date of such notice;

and

(2) the rights of any bona fide tenant, as of the date of such notice of

foreclosure–

(A) under any bona fide lease entered into before the notice of

foreclosure to occupy the premises until the end of the remaining term of the lease, except that a successor in interest may terminate a lease effective on the date of sale of the unit to a purchaser who will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90 day notice under paragraph (1); or

(B) without a lease or with a lease terminable at will under State

law, subject to the receipt by the tenant of the 90 day notice under subsection (1),

except that nothing under this section shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer time periods or other additional protections for tenants.

(b) Bona Fide Lease or Tenancy- For purposes of this section, a lease or tenancy shall be considered bona fide only if–

(1) the mortgagor or the child, spouse, or parent of the mortgagor under

the contract is not the tenant;

(2) the lease or tenancy was the result of an arms-length transaction; and

(3) the lease or tenancy requires the receipt of rent that is not substantially

less than fair market rent for the property or the unit’s rent is reduced or

subsidized due to a Federal, State, or local subsidy.

(c) Definition- For purposes of this section, the term ‘federally-related mortgage loan’ has the same meaning as in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602).

For example, an estimated one third of homes that are in foreclosure in Arizona are rentals.  This new federal law will allow these tenants to stay in the foreclosed property for at least 90 days or the expiration of their current lease term, as long as they are abiding by their lease.  This new program is the same across the nation.

Many landlords across the nation have committed fraud by signing tenants into one year leases knowing they were going to let the house go to foreclosure.  This new federal law is the protection many tenants were lacking and finally gives peace of mind to any family renting a home.  GoRenter.com cares about our tenants rights.  Our company goes to great lengths to pre-screen both tenants and landlords ensuring a suitable match is made that is in the best interest of all parties.  “When we match a quality tenant with a quality property, the resulting relationship makes everyone happy,” said Alan Davis, one of the Gorenter.com owners.

 WHO IS ARIZONA PROPERTY MANAGEMENT COMPANY GORENTER.COM?

GoRenter.com is an Arizona property management company that specializes in helping local and out-of-state real estate investors find appropriate tenants for their rental homes.  We provide full-circle service including a complete maintenance division and 24 hour customer support center.  For Renters, we have the largest selection of available rental homes in the Phoenix-Metro area & clear contracts that make renting a home through us easy.  So whether you a renter or a landlord, the all new GoRenter.com is the perfect choice for all of your rental / property management needs.  Our office line is 602-512-4406.

Also check out our Arizona investment properties website GoRealEstateInvestor.com!

 Property Management Company GoRenter.com Focuses On Customer Service!

When investing in real estate for long term wealth building it is important to focus on cash flow and tenant retention in order to be successful.  When deciding which properties to acquire, many investors work backwards off of local rental rates by contacting their Arizona property management company of choice to get the information.  The professional property management experts at GoRenter.com pride themselves on having a deep understanding of local rental market trends and their abilities to pass that information on quickly to an investor looking to make a fast investment decision.

Once a property is acquired most investors want to focus on finding their next money-making investment and not on the property management side of the business so they choose to work with GoRenter.com to handle the contracts, marketing, accounting, and repairs necessary to find and keep a paying tenant happy.  Where most property management companies in Arizona fail is the customer service side of the business…this is where GoRenter.com shines.  From the first phone call or email, both tenants and investors will find a friendly, helpful, knowledgeable staff of professionals waiting to assist them.  With over 50 highly trained employees and 1000’s of managed houses, GoRenter.com is absolutely the most experienced property management company in Arizona bar none.

For renters, we take our time explaining our “easy to understand” rental contracts and our website makes it easy to find the rental property that fits their needs.  Our property managers can explain local details like shopping, schools, and restaurants due to their in-depth understanding of the Phoenix-metro area.  Once a rental client, getting repairs done is easy with our 24 hour emergency repair line that gets both minor and major repairs done quickly.  Also, paying your rent is easy by mailing in your payment or stopping by our office which is centrally located and dropping it off.  Many renters are extremely happy with the high quality customer service offered at GoRenter.com.

For investors, our aggressive marketing drives 1000’s of potential renters to our website each week.  We know how to maximize return-on-investment by helping you find and keep a long term paying renter.  We also offer a full service approach to property management with our repair department and eviction assistance program.  This way you can focus on finding and acquiring more investment properties and not worry about managing the property…just sit back and collect your cash!  The best part about our program is that we made it extremely affordable and constantly have specials so don’t forget to ask when you make your first call to us.  Lastly, utilize our expertise by getting a consultation with one of our investment experts, this should help you focus on the price range and area of the Valley you should be investing in!

Overall, GoRenter.com property management company focuses on customer service and take great pride in what we do.  We believe that by treating our customers and clients the right way they will keep coming back to our company for their rental needs.  We go by the basic understanding that if you treat people right, they will in return refer their friends and family to our company for all their Phoenix rental property needs.

GoRenter.com can be reached at: 602-512-4406

www.goRENTER.com

Also check out our Arizona investment properties website GoRealEstateInvestor.com!

TO HIRE OR NOT TO HIRE AN PROPERTY MANAGEMENT COMPANY IN ARIZONA LIKE GORENTER.COM?

Therein lies the question…

One of the biggest, challenging decisions you can make as a landlord is whether or not to hire a property management company in Phoenix, Arizona.  A good property management company will help you with the myriad responsibilities that come with running rental properties such as dealing with tenants, tenant disputes, finding prospective renters, marketing for those renters, maintenance, repairs collecting rents and handling evictions if need be. 

While outsourcing those responsibilities can be a sigh of relief to your business, there are many factors to consider before you hire an Arizona management company.  During this article we hope to share many of those considerations with you so that you, the real estate investor, can make the best decision for the future of your investment business.

Cashflow

Can you afford the cut into your profit margin by hiring a property management company in Phoenix, Arizona?  With GoRenter.com you can!  Like any sound real estate investment the basis of your potential profit is generated when you buy the subject property.  So make sure to consider all the numbers including deferred maintenance / repairs, as well as insurance and taxes before you buy. GoRenter.com’s affordable property management fees and clear contracts make it easy for an investor to calculate their total management expenses right up front.  Between quality property management services and a good home warranty plan, most landlords will have peace of mind knowing their rental property is taken care of 24/7 by professionals.

Time

What’s your time worth?  How do you want to spend that time?  Do you want to spend it working on your business or working in it?  That means do you want to focus your energies finding and generating the opportunity to acquire your next property?  Or do you want to spend all the time, energy and effort replacing hot water heaters, fixing leaks, evicting tenants, pursuing late rents all the while trying to stay educated on all the rules, regulations that make you compliant with all state, local & federal laws that come with being both a landlord and a business owner.

That sound heavy I know, but that is meant to impress upon you the advantage of leveraging time when yours is limited.  This can be even more important for those of you with both families and full time careers outside of your rental business.  Depending on the size of your business handling all the responsibilities of being a landlord can and often will suck up your valuable time from those who need it the most.  Your family!  Part of the joys of generating passive income is the ability to create more time in you day to day life to do the things that are more important to you.  By hiring a property management company in Arizona like GoRenter.com you are leveraging your time and ensuring your ability to be as productive as possible in this opportunistic market.

Location

Guess what, the greater the distance to your rental property the greater the headache when it comes to responding to the needs of your property.  Whether it be maintenance & repairs or responding to tenant complaints, it’s vital that you have the ability to respond quickly.  Quickly meaning within 24 hours not 2 weeks.  If your rental property is located out-of-the-state in which you live, a good property management company will have access to local contractors for any emergency repairs or even standard maintenance saving you the time & effort of having to assemble a team yourself from out of state.  

Even if your property is local to you, how far is it from where you do business?  How much time will it take to cut across town to address any issues that may come up?  If your hands on, then it’s a great way to work yourself into another full time job in which the business owns you instead of you owning the business.

GoRenter.com has a full-service maintenance / repair team that is on call 24/7.  Our focus on customer service and our ability to respond quickly keeps our tenants happy and confident their needs will be met.

Management Services

We have mentioned maintenance & repairs frequently during this article, but there are also other associated responsibilities that come with running a rental business. 

• Marketing.  Do you have the experience to know what your area market rent should be for your property?  Do you know how to market effectively in order to minimize your vacancy rate and maximize your rental income?
• Quality tenants.  Do you know how to fill your properties with the best qualified candidates?  Performing a background check isn’t good enough.  How to turn down potential renters while avoiding the appearance of being discriminatory is an important distinction.
• Rent collection, tracking deposits and handling evictions
• Negotiating rental agreements
• Bookkeeping, tracking income & expenses in order to determine profitability

You Don’t Have to be an Employer

If you have portfolio that requires all the above services to actually be handled by an individual or team of professionals, there is an advantage to hiring an Arizona property management company such as GoRenter.com.  By utilizing an associated service in your rental business you can deduct those costs on your taxes.  You also don’t have the liability of having employees on your payroll.  By not having to generate payroll you also don’t have to worry about all the potential tax implications and legal requirements associated with employees.

Bottom line:  If you are in a position to hire a property management company in Arizona do so.  It will help you generate more time in your schedule and help to make the most of your rental business.

About The Author Go Renter:

GoRenter.com is an Arizona property management company that specializes in helping local and out-of-state real estate investors find appropriate tenants for their rental homes.  We provide full-circle service including a complete maintenance division and 24 hour customer support center.  For Renters, we have the largest selection of available rental homes in the Phoenix-Metro area & clear contracts that make renting a home through us easy.  So whether you a renter or a landlord, the all new GoRenter.com is the perfect choice for all of your rental / property management needs.  Our office line is 602-512-4406.

GORENTER.COM’S ARIZONA PROPERTY MANAGEMENT SERVICES HELP HUNDREDS OF REAL ESTATE INVESTORS PRODUCE POSITIVE CASHFLOW $$ FOR THEIR PROPERTIES!

We have had so much success in reducing tenant vacancy and turnover we are able to offer our new:

SUMMER SIZZLING SPECIAL  

•  No Annual Fee For The Rest Of 2009!

•  2 Months Free Arizona Property Management!!

•  $50 A Month Flat Rate Management For The Rest Of 2009!!!

Sign up now and we will lock in the $295 Annual Fee and the flat rate of $75 Monthly Management for all of 2010. 

INVESTORS – YOU NEED OUR SERVICES!

Let’s face it a majority of “Arizona Property Management” companies are just realtors who stumbled into it due to the lack of qualified buyers, for many investors wanting to sell their houses.  So in turn they found renters.  But many of those carry extra associated costs meaning higher management fees.

For example, most Arizona property management companies will list a house for rent using the MLS and pass that cost right onto the investor.  Not so at GoRenter.com because of our systems and protocols we have developed cost saving techniques and measures and pass those savings on to you.

At GoRenter.com our strategic market positioning produces, between 600 to 800 phone calls every month from potential tenants seeking housing!  Additionally our website produces over 6,000 hits every week from potential customers.

In turn we lease as many as 30 homes every week meaning…

we have a surplus of tenants on hand waiting to be placed into your investment properties.

We service investors of all sizes, whether you have your first rental property and need to fill it with tenants or a large portfolio of 20 or more properties.

Throughout 2009 we have increased our management to maintain well over 1200 properties at any given week.  Yet we still have more tenants than housing to place them in with the capabilities to handle hundreds more properties.

For many Arizona real estate investors who have bought Arizona Investment properties to rent in this last year you will find that with our low management fees and our aggressive marketing tenants will fall into place allowing your investment to cash-flow immediately!!

But we can’t work with everybody, right now we can take on only another 500 properties, so act now before it’s too late!  Why wait any longer to produce a profit on your investment(s) and choose a property management company with a proven track record with the expertise to place long term tenants in your houses!

As your property mangement company of choice, we are able to serve Arizona real estate investors in the following Arizona cities:

Phoenix Property Management, Mesa Property Management, Tempe Property Management, Scottsdale Property Management, Chandler Property Management, Gilbert Property Management, Glendale Property Management, Ahwatukee Property Management, Laveen Property Management, Avondale Property Management, Surprise Property Management, Anthem Property Management, Prescott Property Management, Cave Creek Property Management, Carefree Property Management, Arizona Property Management Company

Searching for a rental property in the greater Phoenix area? GoRenter.com offers plenty to choose from in the following cities:

Phoenix Homes For Rent, Mesa Homes For Rent, Tempe Homes For Rent, Chandler Homes For Rent, Gilbert Homes For Rent, Scottsdale Homes For Rent, Avondale Homes For Rent, Anthem Homes For Rent, Glendale Homes For Rent, Laveen Homes For Rent, Surprise Homes For Rent, Anthem Homes For Rent, Prescott Homes For Rent, Cave Creek Homes For Rent, Carefree Homes For Rent, Arizona Homes For Rent, Ahwatukee Homes For Rent

Also check out our Arizona investment properties website GoRealEstateInvestor.com!

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

1. Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

2. What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

4. Are there any income limits for claiming the tax credit?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

5. What is “modified adjusted gross income”?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.

7. Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous “credit” was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

9. How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

10. What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

11. I read that the tax credit is “refundable.” What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.

15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
No. You can claim only one.

16. I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.

17. Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

18. I bought a home in 2008. Do I qualify for this credit?

No but look into the $7,500 tax credit for qualified first-time home buyers in the Housing and Economic Recovery Act of 2008 which includes a number of other provisions that will help prevent foreclosures, reinvigorate the housing market and strengthen the nation’s economy.

19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.

Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a down payment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose (”elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

Yes. If the applicable income phase out would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Become a savvy investor on your own. In a recent month some 7500 homes were sold in Maricopa County. While that number is certainly way below “boom” months, it’s a factor worth considering and it means that homes ARE being purchased and sold. People are taking advantage of opportunities. And, the same is true of national markets. Homes are being sold. Another point to consider is the old mantra of “location, location, location.” Even here in Arizona, and particularly Maricopa County, there are many neighborhoods where sales are taking place, and home prices have not fallen a great deal year over year. Yes, there are neighborhoods where not much action is being seen, but still some areas are experiencing steady movement. How can you spot these locations? It’s really a page out of Real Estate 101. Spot clean neighborhoods where people are taking to each other; where children walk to school. maybe even with their parents; where there are too many cars parked along cluttered streets or sides of homes; where grass is kept mowed and trimmed; where you’d feel good living. You’ll often find that crime is lower in such locales as well.

With GoRealEstate INVESTOR, the investment arm of GoRender.com, LLC, We Have A Long List of Tips & Criteria To Evaluate Properties. Call us today at 602-512-4400 or visit our site at GoRealEstateInvestor.com
| Powered By GoRenter.com,LLC |

Question:  With the recent change in the housing market, where is the growth right now?  What types of properties should I be looking for as an investor?

Answer: The real estate market shifted dramatically in the last 18 months. And I think it really just serves to highlight the old adage, the more things change, the more things stay the same. Even after last year’s phenomenal growth I continue to be bullish and excited about Arizona real estate. Have my buying criteria changed? Yes. I think the recent growth presents some new and different opportunities that weren’t there two years ago. I do, however, still feel that single-family homes are the bread and butter that should form the bulk of the average investor’s portfolio.

Follow the Money

Three significant changes have occurred over the past year, however, that I think warrant mentioning. First, so much wealth was created in real estate last year that I think there will have to be a new outlet for that wealth through real estate. I know quite a few of my investor clients and partners realized several million dollars of growth last year. That new wealth base, combined with the amazing growth of Maricopa County over the past few years has led to a new age of commercial investors.

These commercial investors are taking advantage of ownership and acquisition flexibility that didn’t exist just a few short years ago. Office condos and other opportunities such as TICs have made high-end commercial investments available to a smaller investor. And the smaller investor has greater resources than ever following last year’s value increase.

That’s why I recently refocused much of my personal portfolio into high-quality commercial projects. I believe that the right commercial investment will be my highest performing assets over the next 4 or 5 years. It’s been a while since commercial values really jumped in the Valley, and I think we are at the very tip of that movement after last year’s residential run.

Plus, we finally have the local wealth base to fund the commercial growth that is so overdue. Even those homeowners that don’t directly invest their newfound wealth into more real estate will indirectly contribute to the new commercial growth. More and more consumers are refinancing their homes and taking equity out for consumer spending. And while I’m not a huge fan of this practice, it is helping to drive local commerce and creating expanded business opportunities for new and existing business. This, again, supports the commercial growth I project over the next 4-8 years.

Hot Spot, Anyone?

A second interesting trend I am watching closely and invested in heavily are some of the very attractive satellite markets to Phoenix. My absolute favorite of these markets is in Prescott. Just and hour away and much cooler, there has been spectacular growth in the Prescott Valley. More and more Californians and Arizonans alike are purchasing primary or secondary residences there.

Those are all great indicators. Add to that the fact that the area is surrounded by forest service and BLM land that cannot be developed and I can’t help but think that Prescott could be our next Sedona. Look at what happened to property values in Sedona once they ran out of available land to develop. The value surge was spectacular. I envision that Prescott will follow a similar path as development space and resources become more limited.

For now Prescott is a briskly growing community with very attractive fundamental indicators. It’s still ahead of the curve, however, because once the land starts tightening up the values should spike dramatically. It’s a good value if nothing changes. It’s a home run if I’m right.

Follow the Money, Part II

The last change in what I’m advising my clients to acquire is directly related to the value growth of the past year. As home prices grew it created something of a dead spot in the market at the low end of middle class housing. This is the area of housing that was most affected by investors in the last two years. Lots of smallish single-family homes are sitting stagnant on the market right now because there is so much product available and not enough buyers to take up the slack.

I think a lot of people are disappointed with what $200,000 – 275,000 buys them these days in a single-family home. Housing values have grown significantly, but right at that median home price you have a segment of the market where their wages haven’t caught up yet. And that’s why I have changed my investing criteria at that level.

I am still investing in quality-single family homes above the $400,000 price point. I think they will continue to do well. However, at about $325,000 and below I think a higher-end condo will outperform a similarly priced house for the next several years. Combine that with other factors, such as rising fuel prices, and some of the nice condo developments with great locations become even more attractive.

In the past I’ve always held that I’d rather have a quality single-family home and have never invested in condos at a high level. Recently I see a large gap in the market that can only really be filled by the luxury condo market segment. And I like it. I am, however, much, much more particular when condo investing.

Money Where My Mouth Is

To be clear, I am firmly of the opinion that real estate investment in quality properties will continue to be a very lucrative investment. It will be different from the past few years, but you just have to know what to acquire.

I am acquiring Class A office condos in strategic locations, quality single-family homes $500,000 and up in Maricopa County and Prescott and higher-end condos below my single-family threshold. It’s a strategy I think will return phenomenal results for the next phase of the real estate market.