It’s the end of the year, which means it’s time to focus on end-of-year tasks for landlords. Are you using this time to take stock of your rental properties? Are they still profitable, well-maintained, and prepared for the year ahead? Whether you self-manage or use a property manager, tackling specific end-of-year tasks helps optimize your property’s performance and minimize tax liabilities.
For landlords in Orlando, careful planning and proactive steps can make all the difference. Below, we outline critical end-of-year tasks every landlord should prioritize to set the stage for success in 2025.
1. Compile Rental-Related Expenses
One of the most important end-of-year tasks for landlords is gathering and organizing all rental-related expenses. Keeping accurate financial records ensures you can maximize your tax deductions while maintaining compliance with IRS requirements.
Key documents to compile:
- Receipts for maintenance, repairs, and renovations
- Utility bills and other operating expenses
- Property management fees and service invoices
Realty Medics provides clients with a comprehensive year-end statement, including a 1099 form summarizing income and expenses. This document simplifies the tax preparation process and captures rental-related deductions.
2. Consider Hiring a CPA Specializing in Rental Properties
Don’t get overwhelmed trying to navigate tax laws and deductions on your own, especially if you have multiple rental properties. Partnering with a CPA who specializes in rental properties can help you:
- Identify eligible tax deductions
- Strategize to reduce tax liabilities
- Avoid common tax filing errors
3. Make Repairs or Renovations Before Year’s End
Does your property require repairs or replacements to the HVAC system, roof, or major appliances? Completing these projects before December 31 could lower your tax liability for 2024.
4. Build a Preventative Maintenance Plan for 2025
Preventative maintenance protects your investment and prevents costly repairs down the line. As part of your end-of-year tasks, create a comprehensive maintenance plan for 2025. This extends the lifespan of your property’s systems while keeping tenants happy, increasing the odds that they’ll renew their lease.
Your 2025 preventative maintenance plan should include these areas:
- Seasonal Inspections: Schedule inspections for HVAC systems, plumbing, and electrical work
- Recurring Services: Plan for lawn care, pest control, and gutter cleaning
- Emergency Preparedness: Have a list of trusted vendors for urgent repairs
5. Budget for a Maintenance Reserve Fund
Unexpected repair costs can quickly disrupt your cash flow. To avoid financial stress, allocate a portion of your rental income to a maintenance reserve fund. A few best practices for reserve funds:
- Set aside 5-10% of your annual rental income for unexpected repairs
- Adjust contributions based on your property’s age and condition
By budgeting for these expenses, you’ll be better prepared to address issues without dipping into personal savings.
6. Plan for Lease Expirations and Rate Adjustments
Use the end of the year to review lease agreements and plan for upcoming renewals. During upcoming renewals/turnovers, make a plan to negotiate any increases in rent. Strategic lease planning ensures you maintain high occupancy rates while maximizing your property’s profitability.
7. Analyze Property Performance
The Realty Medics offers Orlando property owners a powerful tool to assess the health of their investments, the Property Performance Dashboard (PPD). Use this resource to evaluate key metrics like cash flow, maintenance costs, and tenant satisfaction.
While assessing the health of your investments, ask yourself:
- Are my properties generating the expected returns?
- Does it make sense to expand my portfolio now?
- Should I hold onto my current properties or consider selling them?
The end of the year is a perfect time to reflect on your goals and make data-driven decisions about the future of your investments.
Partner with Experts for Seamless Management
Managing rental properties can be time-intensive, which many owners lack, especially during the busy holiday season. End-of-year tasks for landlords require careful planning and organization. Partnering with an experienced property management company like The Realty Medics streamlines the process with:
- Access to trusted vendors for repairs and maintenance
- Comprehensive financial reporting, including year-end summaries
- Tenant management services, from lease renewals to conflict resolution
At The Realty Medics, we specialize in helping owners tackle property management challenges. From tax preparation support to preventative maintenance plans, our team is here to help.Ready to optimize your Orlando rental properties for 2025? Call The Realty Medics at 321-947-7653 today to learn more about our comprehensive property management services or request a free rental analysis.
