I was hoping folks in the Louisville, KY area could assist me in determining if I could charge for my labor in performing cleaning and repairs after a tenant vacated? I was looking through the KRS 383 and didn't notice any restrictions on this. Also, what is a typical hourly rate you would charge for items such as cleaning, painting, replacing blinds? Any help would be greatly appreciated.
Yes, I think I read that you can, I found that in this book building wealth one house at a time -schaub, or the new York best seller Real estate to riches. and Jeff Adams Bank owned properties. Not sure what the formula is for that, I forget. They did mention a lot about what the IRS doesn't want you to know in these books . check it out. -Barbie
Of coarse you charge. Generally if you have to charge it is $25-35hr. You always up charge when paying your own laborer. Option two, the owner hires their own people or does it themselves, you provide a list of needed repairs.
Google "property management fee schedule"
There are many ways to make money. You keep late fees, 20% of any "option" you sell, maintenance up charge, debt collection, accounting, evictions that go to court, set out crews, etc.
who are you charging?
If you work on your own rentals, the labor is not tax deductible.
Be careful! Most areas and states do not allow you to charge for your labor. That is why I personally always hire a cleaning crew. I put fees in the lease if something isn't done plus cost.
@Justin R. *I think you are good to go, what type of entity are you set up as? I think if you are an S-Corp or LLC you can pay yourself as an individual outside of that entity or pay the entity as the one who conducted the work (especially if you are the only owner), if Sole Proprietor just make sure you keep detailed records. Also remember if you pay a contractor (for rental property) over $600, not on a credit card in a year, you will need to send them a 1099-MISC. *Please note, nothing commented on should be construed as legal or tax advice, you should and I encourage that you seek out qualified legal and tax professionals to aim you in the right direction.
As far as hourly rate for what I would call non-skilled labor, there is a very wide chasm in Louisville, from $10.00 on up. Maybe you would be better served to price it per job or have a list you create and use that states charges you can go back to. For example - painting - $100.00 per bedroom, larger rooms higher cost. Clean stove - $25, clean fridge $25 etc etc. If you really want to know what others would charge, call up 3 different contractors, cleaners, handymen and compare the 3, normally 1 is way off and the other 2 are close you can get a good idea of an amount to charge.
Updated over 3 years ago
After re-reading the post and Wayne's comment, please allow me to scratch that. I guess you are asking if you as the landlord can go in and deduct money from a tenant security deposit for your own labor, just as an landlord owner/property manager. That is
I believe the OP is asking if you can charge the tenant who moved out, for your own labor, deducting it from the deposit. In most areas, no.
@Arlan Potter. @Steve Osowicz. Thank you for all the responses. I should been more specific in what I was refering to. Wayne Brooks is correct, I was referring to deducting my own labor for repairs and cleaning from the security deposit.
Thanks @Justin R. for the clarification. The best way to charge for lobar is buy sitting up a separate property management company (yourself) and charge your hourly rate or by the job for whatever needs to be done. I believe even if you have language in the lease that states that you will be charging personally for lobar judges/commissioners have ruled in the tenants favor.
Many owner I know, including myself, use this other company to handle all of the properties business. My accountant I does not show this as separate revenues to the tax man.
@Michael Henry thanks for the response. I will have to look further into this.
Any other folks from Kentucky/Louisville area have any information on whether I can deduct my own labor from the security deposit? As mentioned above, looking through the Kentucky Statue KRS 383, I couldn't find anything regarding if I could or couldn't do this.
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