Last year the federal government enacted the Small Business Jobs Act of 2010. This new law requires all property owners, even if you own only one rental, to track vendors and issue 1099 forms if they have done more than $600 worth of work on the property. This $600 is a cumulative amount over the year. (So, if someone did $200 worth of work in March, and then $500 in December, that person qualifies.) This means that by law you must have all vendors’ names, addresses, and SS#s or Tax ID #s. You must then issue them a 1099 form to reflect the amount you paid them for their work.  There are a few exceptions, but you need to check with an accountant to be sure you qualify for them. The penalties for filing late result in up to $250 in fines.

The best solution to avoid any confusion in this new law is to hire our property management company to keep track of this for you. Another benefit is that the monthly service fee we charge is also tax deductable. We charge a minimal percentage of the monthly rent only when the unit is occupied. We do an extensive background check on the possible tenants, then we conduct a thorough walk through before tenants move in and after they move out. We schedule the occupancy inspections when they are needed and handle all maintenance calls. Another benefit is we directly deposit the monthly rent into your account so that you are not waiting on checks in the mail or having to drive to the bank to deposit them.  The benefits to property management are numerous and far outweigh the amount you pay for our services.

http://www.realtor.org/rmolaw_and_ethics/articles/2011/1102_law_1099form

For more information on our property management services please visit our website at the link below or contact Beth at 314-494-5122

http://www.upperendproperties.com/services/property-management.html

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