There are several ways for selling real estate without paying taxes, but I’ll leave that between you and the tax experts. For our purposes, we’ll simply discuss the tax-deferred 1031 exchange. It appeals to the investor who is agressively trying to build wealth, is one of the easiest to understand, and does provide a way how to avoid paying capital gains tax on sale of income property. Let’s take a look.

According to the exchange provisions of section 1031 of the Internal Revenue Code (hence, “1031 exchange”), if properly done, property investors are able to continually step up their real estate investments and will be protected from capital gains tax. For example, you may start with a rental house, later trade up to a 4-unit building, and then some years later trade up to a 30-unit apartment building. And during each transaction, because one property is properly exchanged for another (to qualify, a property must meet IRS exchange requirements), you avoid paying capital gains tax by being able to defer it until you make an outright sale of the investment property (hence, “tax-deferred 1031 exchange”). The benefit to the real estate investor in a tax-deferred 1031 exchange should be obvious: the investor can defer the capital gain (not have to pay it to the IRS when disposing of that property during that particular transaction) and thereby use it toward the acquisiiton of another property (hence, “build wealth”).

We will discuss more about capital gains and 1031 exchange in subsequent articles. Stay tuned.

Vacancies are a part of life with rental property. Tenants come, and tenants go (it’s known as a property’s turnover rate). As a result, when tenants do go, the need to find a replacement tenant as quickly as possible places a huge burden on the real estate investor.

Blog contributor, Paul Rossano, works all day long advising residential income property tenants what they should be looking when they go out looking for a property to rent. I believe the list he provides his would-be-tenant customers on things to watch for might be helpful for landlords to know, and Paul gave me the consent to post it. Maybe it’s common sense, but it’s not every day that the landlord can get inside the huddle of the tenant’s team, and at least the very least use it to provide a good checklist for how to prepare rental income property for the next tenant.

1. Kitchen appliances in working order.
2. Water pressure strong, plumbing without leaks.
3. Electrical outlets and wiring working.
4. Walls and ceiling painted or papered without cracks.
5. Ventilation or air conditioning accessible.
6. Floors, railings and bathrooms in good repair.
7. Fire escape easy to use.
8. No rodents or insects.
9. Heating system in working order.
10. If furnished, check and write down condition of all furniture.
11. Windows and doors operable and weather-tight; screens provided.
12. Check the security of the building to find out if there is a dead-bolt lock, security chain, or through-the-door viewer.
13. In order to avoid being blamed for damages that already exist in the rental unit, the cautious tenant should take every step for self-protection. Before moving in (or as soon as possible thereafter), the tenant should make a list of all existing damages and repairs that need to be made. A copy of the list should he presented to the landlord and attached to the lease This way the landlord cannot blame the tenant for damages caused by others and the tenant will know what the landlord intends to repair. If the tenant keeps good records the landlord will not be able to keep the tenant’s security deposit for damages that were actually caused by others. Taking pictures before moving in is also strongly recommended.

ABOUT THE CONTRIBUTOR: Paul Rossano, associated with www.AllSpaces.com who “Conveniently Connects All People with All Spaces in All Places” has been dedicated to the Real Estate rental market for over 8 years. He has assisted over 25,000 tenants with their renting needs. Any questions about renting apartments, houses or other rentals, feel free to visit www.AllSpaces.com or email him at Paul@AllSpaces.com.

Whether you own one rental income property, a large apartment building, or simply rent out a bedroom in your motorhome. If you own a dwelling you rent out to tenants, chances are that you already adopted some policy about whether or not you will rent to tenants with pets. There is no landlord alive that hasn’t posted a “Now Renting” sign that invariable gets asked, “Do you allow pets?”

Okay, so should you allow tenants with pets into your property or not? There are certainly justifiable reasons why some landlords adamently won’t, but it might help to consider some reasons, especially if you’re a beginner at real estate investing, why it might not be a bad idea.

1. You will get a pool of grateful tenants to pick from.
2. Pet owners generally stay put longer than non-pet owners because it is difficult for them to find a landlord willing to accept pets.
3. It increases the pool of tenants you can rent to, so it helps during periods of high vacancy.
4. Most pet owners are willing to put down a large security deposit that will subsequently offset pet damages.
5. You might be able to command a slightly higher rent when you allow pets.

Naturally, you want to have some controls in place (no six hundred pound cats or yelping dogs, please), but you might discover that pets are not as bad as you think, and might even be better than you think. You should at least consider it.