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    Landlords and Investing in Real Estate

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    otto walikwa
    Real estate offers many tax benefits as a retirement investment, including deductible expenses like mortgage interest, repairs, and home office costs. Landlords can incentivize great tenants to renew their lease by offering a free month if they pay on time and keep the property in good condition. When using sample lease agreements, landlords should modify them to comply with local laws and include a clause stating that any invalid sections do not invalidate the whole agreement.

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    Landlords and Investing in Real Estate

    Uploaded by

    otto walikwa
    43 views2 pages
    Real estate offers many tax benefits as a retirement investment, including deductible expenses like mortgage interest, repairs, and home office costs. Landlords can incentivize great tenants to renew their lease by offering a free month if they pay on time and keep the property in good condition. When using sample lease agreements, landlords should modify them to comply with local laws and include a clause stating that any invalid sections do not invalidate the whole agreement.

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    Real estate offers many tax benefits as a retirement investment, including deductible expenses like mortgage interest, repairs, and home office costs. Landlords can incentivize great tenants to renew their lease by offering a free month if they pay on time and keep the property in good condition. When using sample lease agreements, landlords should modify them to comply with local laws and include a clause stating that any invalid sections do not invalidate the whole agreement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    43 views2 pages

    Landlords and Investing in Real Estate

    Uploaded by

    otto walikwa
    Real estate offers many tax benefits as a retirement investment, including deductible expenses like mortgage interest, repairs, and home office costs. Landlords can incentivize great tenants to renew their lease by offering a free month if they pay on time and keep the property in good condition. When using sample lease agreements, landlords should modify them to comply with local laws and include a clause stating that any invalid sections do not invalidate the whole agreement.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Landlords and Investing in Real Estate

    Real estate offers many advantages when it forms part of a retirement investment plan.

    Apart from the capital growth, there are many tax benefits to be gained from rental properties -
    more than most other investments.

    The interest on mortgage loans, costs associated with repairs, running a home office to manage the
    properties, travel costs to your rental units and insurance premiums are just a few examples of tax
    deductible expenses.

    Here's a good tip for landlords to consider:

    If you find a really great tenant (who passed your screening with flying colors), offer them the twelfth
    month free on a year-long agreement provided all monies are paid on time and the property is in the
    same condition as when the rental started.

    If you think about it - that is the same amount you would have paid the letting agent, (if in your
    country this money is payable by the landlord) but in exchange you give a great incentive to the
    tenant to sign and stay for a year, pay on time and to take care of the property to qualify for the free
    month.

    Note:

    The free rental agreement forms are provided as sample documents and are general and generic in
    nature.

    When using them you can modify them to suit your circumstances but you must ensure that they
    comply with the legal requirements in your state or country, e.g. anti-discrimination or fair housing
    laws, privacy rights of a tenant, health and safety codes, rent control etc.

    If you are not using the services of a real estate attorney, you must investigate your local laws to the
    best of your ability and then when using our free real estate contract forms to compile your
    agreements, it is advisable to add the following clause:

    If any clause, or part of a clause, is found to be invalid or unenforceable by an appropriate court of


    law, all the remaining clauses of this agreement will remain in full force and effect and binding on
    both parties, as if such invalid or unenforceable clause had never been included.

    What are the Job Duties of a Real Estate Agent

    Agents assist landlords in renting their properties, do tenant screening, do regular inspections etc.
    and they also offer lease agreements as part of their service.

    However, we prefer to use our own legal documents. We have a number of properties and if each
    one used a different lease agreement, it will become quite complicated trying to keep track of a
    myriad of clauses and deadlines etc.

    We actually make it our business to also meet with a prospective tenant and review and confirm
    references, employment etc. before giving the OK to a property agent to sign a lease with the tenant.

    The reason is simple: Our real estate properties are a valuable part of our retirement investment
    portfolio. Some rental agents don't really care any further than getting their rental commission and
    would gladly place a marginal tenant.
    We also make it our business to inspect the property regularly. It's much easier to do maintenance
    on an ongoing basis than to find a myriad of things to fix (doors almost falling off their hinges, sinks
    leaking into the cabinets below etc.) at the end of a tenancy.

    Incidentally, if you are presented with an agreement such as a mandate to rent your property, you
    need not accept the contract in its entirety. Negotiate clauses such as the period of the initial
    mandate and for how long thereafter commissions will still be payable on agent referrals.

    When entering into an agreement with a real estate broker to lease your property, you
    must reserve your right to rent the property yourself  with no commission due to the
    broker.

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