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If I rent my townhouse out, and I only charge what my mortgage is will I lose money since I need to claim that money on my taxes? What’s a good checklist to decide if I rent it out or not and what to do if I do choose to rent out my house

6 Thoughts on I am thinking of renting out my townhouse, what is a good checklist for me to get started with this.?
  1. Reply
    wizjp
    January 1, 2013 at 12:50 am

    First check with your owner’s association and see if it’s even permissible. Also check with your homeowner’s insurance holder and your mortgage note holder to see if there is or if you need an item known as an assignement of leases and rents.

  2. Reply
    knowitsome
    January 1, 2013 at 12:57 am

    first of all, you shouldn’t be losing money “after taxes”. If you’re getting your mortg. covered, after writing off the interest you pay on your mortg. at the end of the year, you should be coming out ahead (talk to your accountant about this)

    checklist: make sure everything is working properly, plumbing, electrical etc. Clean the carpets, hire some maids.

  3. Reply
    James V
    January 1, 2013 at 1:47 am

    I don’t know about a check list. However, it you rent it for your mortgage, you should be okay. Since you can deduct mortgage interest, depreciation, taxes, maintanence, advertising, etc., from the rental income.

  4. Reply
    ruadisneyfan
    January 1, 2013 at 2:26 am

    As a general rule, single-income properties will not give you ven a small positive cash flow. That is why investors by multi-unit dwellings. Two units usually cover the mtg,taxes,up-keep, if any HOA dues,etc…the 3rd unit puts you in a positive cash flow and about that you are golden..based on a four family house.

    Before you start a long checklist,make sure..that the mortgage, taxes, damages/breakages, HOA dues, etc cover your outlay and gives yu a positive cash flow. If not, the check-list is done. Keep in mind tennants do NOT care about your property like you do,sadly. I have had clients need to replace toilets,etc..you would not believe it if I told you.

    My advice to my clients has always been..to make real money, sell asingle untit and use the money to start off with a 3-4 family home. Keep a few years, pull out equity and buy another…and keep repeating. Before you know it, you will have a large portfolio. One of my clients started with one property years ago..we just got him an 8 unit bldg…he now has a portfolio of 1.5 million in less than 6 years. I LOVE real estate!

  5. Reply
    Mustbe
    January 1, 2013 at 3:02 am

    First check out a Ten tent.
    Make sure they have rent & deposit up front…
    If they ask if you can work with them on deposit more than likely they will be slow on rent.
    (Please note not in all cases)
    Have your home up and ready to go…longer you wait to rent the more money you loose.

  6. Reply
    spadezgurl22
    January 1, 2013 at 3:34 am

    spell out everything in the lease, tenant is responsible for water, heat, electric, and gas. make sure they agree to the terms, rent to someone u know so u can trust that they will pay you bc if they dont u have court problems.just know that u will be paying quartley taxes on prpoerty your not inhabiting. it can work but make sure u rent to someone u trust!

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