What can you do if your tenant stops paying rent? Are there any protections for landlords? And what types of safeguards can you put in place to mitigate this risk? These are all great questions that I’ll be answering on today’s Q&A episode!
This episode of Investing in Real Estate covers topics like dealing with non-paying tenants, strategizing what to do with an appreciated property, and what you need to know about tax deductions for real estate investors. Press play to hear my answers to your best real estate investing questions.
On this episode you’ll learn:
- What you can do if your tenant doesn’t pay rent.
- Options for upgrading an appreciated rental property.
- What you should know about tax deductions.
- And more!
What You Can Do If Your Tenant Doesn’t Pay Rent
Non-paying tenants can happen from time to time. I’ve had my fair share of experience in this department, and my best advice is to be careful where you invest. The market you invest in is of upmost importance. To mitigate this risk, you’re going to want to but in markets with high job growth and diversity in landlord friendly states.
Additionally, you want to be sure you’re working with a great property management team that is properly screening tenants. In the event that your tenant doesn’t pay, the property management company can help you get through the eviction process.
Options for Upgrading an Appreciated Rental Property
An appreciated rental property is a good problem to have! Some options include selling, refinancing, or tapping into that equity with a HELOC. If I were in this position, I’d look into pursuing a 1031 exchange so that I could accumulate more rental properties with higher cash flow. We have a great 1031 exchange program that could be right for you. I’d suggest booking a free call with my team so they can point you in the right direction.
What You Should Know About Tax Deductions
Taxes can be very individualized, which is why I always recommend having a great tax team on your side. We recommend the team at Wealthability. If you or your spouse can qualify as a real estate professional, that’s a great route to take. If not, there are still tons of great tax benefits available for you to take advantage of, especially on new construction rental properties. See my videos on cost segregations and real estate professionals for more info.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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