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A behind the scenes look, mid-reno
It is essential for a fix and flip investor to implement maintainable and accessible systems that help in expanding their business and improve the number of revenues they are earning. Successful fixing and flipping businesses are made up of complicated processes. An important aspect of these complicated processes is related to accounting and bookkeeping.

Accounting for all of the expenses that take place is necessary to achieve success in this field of business. Reducing the overall tax on the business by providing accurate values and accounting shows the investors and other lenders that the business is running professionally.

Developing efficient accounting systems is not hard, especially with the technological advancements in the millennial age. Efficient accounting methods can be made easy by utilizing software and applications that are specifically made for accounting and bookkeeping purposes.

However, ensure that the accounting procedures are not complicated. Keep it as simple as possible while educating your employees who are responsible for accounting. They should know the handling of new technology that you introduce in your business or organization. Below are some ways to stay organized and things that you need to show to your accountant or bookkeeper at the end of the day.

1. Introducing and Developing an Effective Accounting System

The shoebox method is a process in which all the receipts and financial records are collected, stored and handed over to the accountant at the end of the year. This is a cost-effective method and is not very common in the millennial age. Some experts do not recommend this at all.

A more profitable and time-saving method would be to use software programs and applications that cater to accounting services. An example of an application is Expensify which allows the user to scan a receipt, enter the specific amount, categorize it accordingly and then save it into the cloud. It works somewhat similarly to the shoebox method, but it is much easier to maintain and simpler to use.

Regardless of whatever method you use for developing an effective accounting system, make sure that you include the following categories of transactions:

1- Acquisition costs

2- Rehab costs (The improvements made in the household)

3- Repairing costs of the household

4- The holding costs of a property

5- The selling price of the property

6- The selling costs

2. Types of Records that should be kept as a Backup

The laws of a state do not require the records of a fix and flip business, unless there are certain specifications. Any method of recording transactions can be opted for that clearly defines your income and expenses or any other expenses that might take place.

Keep a record of all of the tax assessment cards and maintain the HUD statements alongside all receipts that are inclusive of any transactions that may have taken place. Insurance documents should also be stored along with these in your bookkeeping records.

All external expenses that take place should also be recorded with the supporting documentation. The supporting documentation should show the amount that has been paid and the amount of money that was invested for a business expense.

The expenses documents include:

1- The checks that have been canceled

2- The tapes of the cash register

3- The statements of the accounts

4- The sales slips of all credit cards that have been used in the business

5- Invoices

6- The petty cash slips that are used for small cash payments

3. Decide Whether you are using Cash or Accrual Methods of Accounting

Decide whether you will opt for cash or accrual methods of accounting. The cash method defines the income recognized after the paycheck is received and expenses are recognized after they are paid. Many taxpayers use this method to get their returns.

The accrual method of accounting identifies the income and expenses when they incurred or earned instead of recognizing them after the check or payment is received. How does this imply to fix and flip investors?

When someone deals in a property, the IRS classifies him or her as dealers. This means that, for accounting, the house that the investor is dealing with is his/her inventory. The IRS will, therefore, require the use of the accrual method.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

 

the rest of the people in Sweden are in Stockholm, center city, evening, green grass in the Park, picnic on the lawn
Certainly, investing in a business renders profit when it is being executed efficiently with effective performance. Likewise, investing in sports and recreational facilities builds stronger, happier, safer, and healthier communities across the globe.

In fact, parks, public spaces, sports institutions and recreational facilities are an integral element of the physical atmosphere, human environment, and culture of any region. They also render a potential positive financial impact; however, it is usually overlooked.

There is a long list of recreational and outdoor facilities, including cycling and walkways, camping and caravanning, motoring and transport, boating and fishing, and special programs for kids, teens and young individuals.

Property Values

Recreational facilities potentially boost the property prices of surrounding houses, apartments and offices that produce considerably more property taxes for the town or city government. Although outcomes are different, studies demonstrate that a property’s proximity to parks enhances its price value by up to twenty-two percent. Also, the inherent value of a park largely depends on the quality and size of a park. Beautiful parks with additional recreational facilities, such as tennis courts, pools, fishing, or cultural activities can generate higher premiums.

Health

Green spaces and sports facilities help in encouraging active lifestyles as well as reducing stress thereby promoting a healthy environment. Consequently, recreational facilities help reduce healthcare costs. Also, exposure to green environments helps increase focus, reduce ADHD/ADD, lower blood pressure, improve sleep and mood, boost the immune system, and expedite medical recovery. Even if exposure to green spaces and parks reduces anxiety and stress by only five percent (studies indicate it as a low number), the production cost savings can be ensured by at least $2.73 billion each year.

In fact, a 2001 case study on citizens of a Chicago housing project showed the positive impacts of nature, greenery, and recreational activities on even chronic, physical, and mental issues ranging from a stressful life to obesity.

Environment

Recreational facilities, especially parks, and green spaces reduce environmental pollution as well as support storm-water management thus saving the environment as well as money.

Tourism

People are interested in visiting areas where there are plenty of recreational facilities. Thus, the more that a city or town has worth visiting, the more tourists’ favorite place it would be. The estimated total value of tourism based on green parks in the hundred largest cities of America is about $494.28 million, which is a massive amount.

Social Capital

The arrival of visitors to parks and the collaboration of individuals of diverse backgrounds and varying mentalities with other differences in these places create feelings of community as well as social capital.

At the most fundamental level, recreational volunteer organizations, green environmentalists, and park activities provide community building, social grooming and other valuable hours of services that, in return, render a sense of self-responsibility for community well being and human development.

Government Initiatives

Considering all of the above advantages of recreational facilities and many others we didn’t mention, municipal authorities and government institutions of different cities and states take necessary steps in supporting the infrastructure and development of a diverse and sustainable green, sport and recreational system. This is because, as discussed earlier, such a system develops talent and contributes to the health and well being of people, communities, and the environment. Consequently, well-educated nations strongly advocate the incredible benefits of sports and recreational facilities, not just regarding physical advantages, but also regarding emotional, mental, environmental and communal benefits.

Conclusion

Investing in recreational facilities is as important for a city, state, or nation as it is important for a business to do bookkeeping and maintain its financial records. In fact, regions with a scarcity of necessary human facilities, sports systems, and educational institutes are increasingly abandoned. Also, such areas trigger the challenge of survival as the unhygienic environment can cause significant health, social and communal issues, considerably impacting the tourism, communities, diversification, environment and many other aspects of a state or nation negatively. Consequently, it can be said that investing in recreational facilities is a critical requirement for all regions.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Financial Growth, Plant on pile coins with cityscape background
Businesspersons and entrepreneurs have invested in properties in order to gain profits for a very long time. Properties that entrepreneurs invest in most often are residential plots, shopping malls, theme parks, and entertainment resorts.

In the millennial era, going to the mall is one of the most common activities enjoyed by people worldwide but, alongside, everyone needs a home to live in. Seen from a business perspective, there are many alternatives when investing in a property. The following is an introduction and a slight comparison between investing in small apartments and small strip malls. 

Investing in an Apartment Building

Investing in smaller apartments has many advantages attached to it. Primarily, it is a cheap thing to own as apartments have lower down payment rates and the ongoing costs are low. Smaller apartments, when compared to larger ones, are easy to manage and have a healthier rate as more rent can be derived from each unit.

A property that consists of more than four units requires a commercial loan when financing. Usually, a down payment of 25% is required. Although, if the investor is lucky, they may find various deals in which owners are privately selling a property and they hold onto the mortgage and take smaller down payments. However, a due payment attached to owner financing is due within a time limit of 10 years. Therefore, refinancing is required with a down payment of 25%.

The maintenance costs are another important aspect that must be considered when investing in a small apartment building. Small apartments usually do not require on-site repair employees compared to larger apartments that usually do.

The final things to consider when investing in small apartments are:

  • Decide whether the tenants will be affiliated to Section-8 or whether they will be non-Section
  • The location of the building

Investing in a Small Strip Mall

As long as people have to eat, they will head to the grocery store or the mall with food outlets. Therefore, investing in a small strip mall is still as valuable as ever before. Although a costly investment, the returns and popularity an investor gets is satisfactorily appealing.

The retail plazas that are found locally offer investment perks in the field of commercial property and real estate. There are advantages related to tax, mortar, brick, and land security. Retail stands out because it can possibly deliver both, the building of wealth and passive income, simultaneously. It is recommended that investors collect monthly payments of rent and wait for the value to increase.

Alongside, the latest research and forecasts show that the future is even brighter for the commercial real estate market in the US. For pessimistic investors, it is better to know that local retail properties are often the last things that become damaged or outdated. 

Wheter it is Uber, Airbnb or strategies related to city planning, everything is about local shopping these days. Therefore, it easily foreshadows the ever-increasing performance and returns of these properties.

Which is Better?

Whether you are investing in a small strip mall or a residential property, you need to take into account the amount of money that you are putting in. While investing in a small strip mall, you need to consider that you have to do more work comparatively in order to get sponsors and deal with organizations providing products. However, when investing in an apartment building, you will mostly get a fixed amount of money according to the residential value of that place. No matter what you invest in, make sure that you consider the following things:

  1. The location of the property
  2. The legal paperwork of the property
  3. The average rental value of the area
  4. Maintaining all the financial transactions in bookkeeping

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.


 

Camper camping at RV park in autumn in North Carolina Blue Ridge Mountains outside of Asheville.

Investing in a Camping Site and Recreational Property

If you already own a decent home, you may be looking for other real estate properties to invest in. One of the most suitable investments is owning a recreational property or camping ground. Maintaining such properties for a long period of time can ultimately become a solid investment.

Despite being a safe and lucrative investment, campground and recreational facilities have their own challenges. One of the major challenges is that the income from the properties vary and the returns are quite unpredictable. Other than that, investment in such properties is relatively safer compared to other real estate investments.

Why Should You Invest in a Camping Site?

Investing in a camping site will reap several benefits in the long run. The owner of a camping site can charge for housing or vehicle parking months in advance. However, a major benefit is that an owner can ask tenants to leave within days’ notice if they don’t abide by the rules and regulations of the property.

Difference Between Tenant Types

Tenants of camping sites or recreational properties are different from those living in an apartment building. In a recreational property, such as a camping ground, the tenants are renting the property for reasons such as wanting to escape winter or spending the holiday with family.

As the tenants are using the property temporarily, perhaps for a holiday, they are less likely to cause problems like a delay in rent. Their moods are generally more pleasant than apartment tenants. Technically, tenants at a camping site are actually visitors of the property.

No Lease Payments: A Disadvantage

The one thing that makes such an investment unpredictable is that camping grounds do not require tenants to pay a lease on the property. This makes the investment and returns variable to the seasonal traffic of tourists. With the absence of a lease payment, monthly income will depend on how many tourists stay at your property. As the income is seasonal, it’s important to budget well when considering real estate properties for investment.

Seasonal Income

Many recreational properties have more of an influx of visitors in summers, hence, the income is seasonal. Since the income is seasonal, taxes must regularly be paid regardless of the income. Sometimes the influx of visitors is slow and the income is not sufficient to cover the expenses of the property.

What to Consider when Buying a recreational Property

When buying a camping ground or other recreational property, you need to check the actual income from past years. Use the past data to determine future cash inflows. If they are positive in the long term, it would be a good choice to buy the property. Look for steady yearly income with good returns on investments in the first few years when you are looking to potentially invest.

Tax Returns

Consider the tax returns to get an idea of the entire operational side of the business. The income and expenditure records will help identify and estimate the income before any service debts. Select a suitable property and invest in it by keeping what you want for the return in mind. To get a clear picture of the investment, it’s important to subtract the profit from the total net service debt. The remaining figure will be the amount payable on the loans you take for investing in a property.

How Much Can You Pay for the Property?

Determining the amount you can pay for a camping ground or recreational property depends on the amount of down payment you make. Ensure that you know the other costs associated with the property including taxes and insurance premiums, if any. Include these costs when calculating the existing capital you already have to purchase the property.

For those interested in investing in a recreational property, it’s essential to look for properties that are priced similarly to other nearby locations. Depending on business and management skills, a parking space worth $10,000 per spot can be quiet profitable.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Man uses a paper fortune teller to make multiple decisions for his own portfolio, allocating assets and diversifying in a portfolio to minimize risk for optimal profits. Financial investment concept.
The straight path towards financial stability begins with you developing a budget and paying off high-interest debt along with sustaining emergency funds. Even when you set aside money from your monthly paycheck to go into a savings account which is going to earn interest, nevertheless, a piece of the monetary puzzle is still going to be missing. Real money is made when you invest it, however, the complexity can be highly intimidating. The following 6 tips for beginners can help you invest your money correctly and wisely.

1.  Set Specific Goals

If you want to make money in the long term, it is important that you set specific goals for yourself. For beginners, it is important that you think about the bigger picture rather than just making fast cash. For this purpose, it is important that you think about the volatile industries such as the stock market.

2.  Invest in a Financial Advisor

Even with huge resources like Google’s search engine and Amazon’s digital library, you might need extra coaching. Monetary advisors are not simply a superfluous expense. They may be able to help you in differentiating a sound investment option from simply a fad and they can give you personalized advice as well. Financial strategists, which are recommended, are avoiding TV for their stock market advice as most television critics offer only short-term information.

3.  Keep Costs Low

Even when you only have a small amount of money to begin with, there are numerous small investments which can build into a significant payoff. Whenever you are new to the field of investing, you should avoid spending large sums of money, even if it is available to you. When you keep your costs lows, you will have more funds later when you want to invest in a bigger opportunity.

4.  Diversify Your Portfolio

Investment portfolios may include real estate stocks as well. Along with this, mutual funds and retirement accounts are included as well. Every industry has its own beats which actually means that you are supposed to thoroughly investigate the housing markets and stock prices before you actually dip your toe in the water.  

5.  Do In-Depth Research

It is an understatement when we say that knowledge is power, especially when it comes to investments. Nevertheless, the complex financial jargon can sometimes be very overwhelming and complex. Therefore, it is important that you conduct in-depth research before deciding to invest somewhere. This research can make or break your investment, not to mention your bank account. Most of the time, investments lead to loss only because the investor had not really paid attention to completing their research.

6.  Consider Automation

There are numerous types of investments that can be done with automatic contributions. For instance, a 401(k) plan or even an IRA is a great way to investment your money. Low-cost finds are considered to be the best for automatic deposits.

Check out America's Best Bookkeepers


About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Where to Invest? handwriting

Investment for Beginners

Today, the investment trick is to not only make money but also know how to make money from your savings. Currently, the best option for those on a salary is to save a part of their income for an investment. It is worthwhile to invest that money in order to enjoy better profits apart from the salary. Use the savings wisely, saving up a little from your monthly income can go a long way. Keeping the investment with a bank is not a good choice if you’re wanting to add more. Instead, invest that money into a low risk, low return project initially.  

Before considering an investment, common questions arise. What does it mean to invest your money? What is an investment? Quite simply, an investment is a transfer of capital or a certain amount of money to a project and a stock that is not channeled to generate income of the same amount. Current income is of two types. Income return is income from returns as an investment. For example, rent and interest. The second income type is capital appreciation, increasing investment value as a result of increased demand for a certain asset.

How to Start Investing Right

Initially, everyone that invests their savings wants a profit on their investment as soon as possible. Especially when it comes to beginner investors, it is imperative to take into account that smart investments take a lot of trial and error, amassing experience, learning lessons, and generally great patience. A long-term, worthwhile investment ensures that the money will be worth much more in the future.

When interested in beginning to invest, there are several steps to consider before making an investment decision.

Sufficient Savings

Check whether the amount of money kept aside is enough for future investment spending. Moreover, to carry out day to day activities, you must have your expenses covered. A regular job with a steady paycheck will allow you to pay for any expenses incurred on a regular basis.

Choose the Right Investment

Choosing an investment path is an essential decision for first time investors. For beginners, there are three main types of investments. We recommend that you choose one type of investment (at least for starters) where you will focus most of your time and effort. You can choose between investing in real estate, securities or investing in a business.

Choose the type of investment that you prefer and know what is best for you in terms of profits, market risk, and knowledge of the investment type. A wise choice is to select a business that involves low risk with a reasonable profit.

Learn About the Market You Want to Invest in

Once you have chosen your investment field, it’s time to start learning about the business! Knowledge is power. The more you know, the stronger you will be in the field you choose and the better you will be able to work that investment. Today, so much information is on the internet and you can learn a lot about the investment field you have chosen, read powerful information, and even get some great tips. The most preferred method for beginners is to study a course in the field and learn to be a smart investor.

Types of Investment: Where to Start Investing

At the initial stages of investing, it is not always clear where to start the process and how to actually get into the first investment. Check whether a particular investment field seems feasible for your first initial step. Following are some of the common fields that are suitable for an initial investor.

Real Estate Investments

Investing in real estate is one of the most common types of investments for beginners. This area is relatively stable and the income received in real estate is continuous. You can receive payments each month by renting a property. The real estate market is very dynamic and subject to many rapid changes. When there is an interest in real estate, proceeding with caution before investing on a property is a good idea. Before investing in real estate, make sure that you have sufficient knowledge and expert help.

Capital Market Investments

Investing in the capital market is worthwhile for longer periods of time, but less effective in the short term. People often find themselves in a situation where they need to watch the investment precisely when the portfolio is at a low level. If someone lacks the necessary knowledge in the capital market, they can conduct a safe investment in a portfolio. Today, many companies provide assistance for investors looking for a safe portfolio to invest in.

Investments in Business

One of the most effective solutions for beginning investors is using your savings as an investment into a business. Many people invest in a business because they believe that that business has a chance to flourish and grow in the future. Ideally, the business will generate a large income and then that income would be distributed among the investors. Note that in passive investment, a business has its own set of risks.  All responsibility and control over the success of your investment is in the hands of others. You should check all of the business details, including it’s operations, with those who are getting into the investment.

Choose the Right Investment Channel

Investors who are beginning to invest in different businesses and capital must consider that an investment is not an easy decision to make. Every investment has it’s own risks and a different range of profits. Investing requires intensive knowledge and a great deal of time learning the field of investment you have chosen. Choose the right investment for you and check that you have the necessary tools for an investment to be fruitful.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

Red For Rent sign closeup against brick building
Rental properties and real estate investments are all about making smart decisions and thinking out of the box with the available resources at hand. It is a great outlay as no beginning is too trivial and no venture is too large. No matter what the scale of your resources is, the opportunities are limitless. There are many benefits associated with owning a rental property, therefore, don’t let the fear of failure stop you from laying the perfect platform for your future investments. You will make mistakes of course, but that is how you learn and grow as an investor.

Rental properties and real estate – start with single family homes

There are many forms of rental estates which include industrial buildings, multi-purpose homes, office buildings, residential housing and many others. All of these have different sizes and prices. However, for starting investment options, it is better to consider single-family homes, as they offer the most rent with the least distress. Also, there are few basic things that you must consider before buying any property if you want it to be a worthy investment.

Property Type

Before you start buying rental properties, specifically single family homes, you must consider living in it for a while. This means that it is a rental property from the very first day and most of the documentation for the property will already be taken care off.

Moreover, many crowdfunding forums have emerged which allow you to invest in any type of property you desire, with as little as $1000. Whether you want to invest in commercial real estate or a residential property, the crowd sourcing forums are a great way to start with minimum risk.

Pick a great location

A great location is key to the growth of any rental property. Any property that is close to major roads, universities, or public transport tend to have higher rental rates than others do. Do your research about other rental properties in the area you are interested in and you will know if the investment is worth it or not. Many people make the mistake of overestimating the worth of their properties, leading to vacancies. No one would rent a property that is higher than the market value unless you offer some extra perks.

Run the numbers

One of the most significant contemplations for real estate investors is to precisely estimate the rental income and the expenses associated with leasing or buying the property. If you are investing in more than one property, it’s important to treat each one as a separate business. Run the numbers individually for each property and estimate their rate of return.

1% rule

Remember that rental properties should pay you at least 1% of the total investment for it to bring positive cash flow into the business. However, this is not a hard and fast rule and many commercial properties pay you a higher rate of return than that.

Correctly estimate your expenses as well while running the numbers. Insurance and maintenance are two of the potential expenses. Real estate often goes through ups and downs and vacancies come with the deal. Therefore, you must always allow for losing at least one month of rental income to such unforeseen scenarios.

Don’t spend too much on renovations

Don’t spend too much on renovations as it will need maintenance anyway. Frankly, renter will not treat the house as their own so there is a large likelihood of damages and repairs that you will need to make. Set out some minimum standards and always meet them but don’t go over them. You can also hire maintenance services for rental properties at an annual cost. They offer a warranty and the costs are spread out over the year, saving you the trouble of dealing with high maintenance costs.

General maintenance should be included in the rental agreement, however, major renovations of condos or townhouses should be done for a certain fee.

Appreciation market or high rentals

This is a critical decision you have to make while choosing a real estate demographically. Some locations have a very good appreciation rate for properties but the rentals are average. Other properties pay you high rentals but do not appreciate in land value over time. The right decision depends on many factors and your preference and long-term plans for the property.

Choose renters wisely

A final decision is to decide about managing the property. If you decide to manage it yourself, ask yourself whether you are prepared to stay on top of the tenants. With all of the benefits of owning rental properties, a troublesome occupant can make it really hard for you to manage it. Also, you should be prepared to deal with a variety of customers. Some will pay late and others will make unnecessary noise. If you are prepared to deal with these situations, get into real estate renting.  If not, it may not be for you.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.