If you are an investor in Warner Robins an excellent way to use your tax return is to add value to the properties you already own.
If you do not have any rental properties yet, this will be good article to help you decide (to use us) how to best make use of your house when you move out. In our latest post, you’ll learn about improvements you can make to add value to your Warner Robins investment properties.
Many landlords will use their tax return on something material or frivolous that only provides a one time reward.
But what if instead of using your tax return on a new tablet or tv, you used the money to build equity in your home? Adding value to your personal or rental property will only benefit you over time. Keep reading to learn about some of the best ways to use your tax return to add value to your Warner Robins investment property.
To add value to your investment property, replace old, worn out appliances with their more efficient counterparts. Your new appliances will ultimately pay for themselves over time by providing lower electric bills and maintenance costs. Newer and efficient appliances will be a huge draw if you are attempting to rent the property out. Prospective tenants will likely be paying their own utility bills and will jump at the opportunity to save some money. Increasing the efficiency of your appliances will offer benefits for years to come and add value in rents. Also, look at the A/C unit. If the unit is more than ten years old. It will save even more on the electric bill.
Adding value to your investment property at the curb can be a cheap way to make the overall house look like a castle. A few small changes to your front yard can make a huge difference in the way your property is seen by prospective buyers or renters. A few easy things you can replace include the front door, mailbox, porch light, and house numbers. Updating your landscaping with new flower beds or trees isn’t a bad idea either and can be done for a relatively low cost.
If your investment rental property has a high turnover (meaning your tenants move out every year or two), this trick should be getting done regularly anyway. Painting a room can completely transform it and give it new life, although I recommend painting the whole house at one time. Tenants and buyers like a central theme, NOT a patchwork quilt. Plus it is a project that can be done pretty inexpensively in comparison to other renovations within your home. You’ll likely be able to do most of the work yourself, paying only for the materials and the cost of your time. If you really want to save money AND look like a hero, let the tenants paints the house, Within reasonable colors, of course. They get to personalize the house (we restrict the tenants to neutral earth tones only) and we get free labor. Even better, The tenants like to stay longer because it’s a part of them now.
A new floor will completely change the look of a room. Even if you don’t do the whole house, upgrading the floors in a room or two will definitely add appeal to your property. Whether you choose to go with tile, laminate, carpet, or wood, adding new floors to a portion of your home can dramatically change the way it is seen by potential buyers and renters. Many landlords go as cheap as they can, but we have found that getting certain high quality flooring has lasted longer and saved money over the useful life of the flooring.
Most landlords don’t like to put nice detail touches in a rental property because the tenant will only tear it up. If you screen your tennats properly, adding value to your investment property will please the tenant and they will feel obligated to keep the house in good order. Adding a backsplash or new hardware can dramatically change your kitchen without costing a lot. You could even repaint old dreary cabinets giving them a whole new look and feel. If you have an appliance that is on its last leg, now is the time to begin shopping for something new, not when it breaks down at the most inconvenient moment possible.
Home Improvement Deductions
Since making improvements to your Warner Robins investment property can likely be deductible (talk to a competent tax professional that know real estate tax law), you’ll still want to keep track of how much you spend. When you make improvements to the home, the amounts can be subtracted from your overall tax basis when it’s time to sell the property. There are no tax credits for selling an investment property, But by using your tax return for renovations, you’ll not only be improving the property to attract more tenants, but you will possibly be able to adjust your overall basis and save yourself some money over the long-term. Keep in mind, this applies to things that increase the value of the home, not your ordinary, everyday repairs. MAKE SURE TO TALK TO A TAX PROFESSIONAL ABOUT YOUR INVESTMENT PROPERTIES.
If you want to learn more about how to use your tax return to add value to your investment properties, we can help. Send us a message or give us a call today! (478) 256-9947