The concept of home improvement, home remodeling, or simply renovation is the act of making improvements to your house. Home improvement may include projects which upgrade the house interior, exterior or any other specific upgrades to the house. It also includes projects which bring the house into compliance with building regulations. The term “renovation” in this context does not necessarily refer to a process which transforms a building into a new dwelling; rather it describes an endeavor to make the house better performing by making necessary changes.
This is important because the purpose of rental property improvements is to enhance the value of your rental units as well as making them more comfortable and functional for your family and guests. This is especially important if you live in a rental property which is situated in a neighborhood which has high rates of crime and violence. Even in a peaceful neighborhood there may be a few undesirable neighbors who could cause trouble while you are away from your home for instance during construction or renovations. These unwanted people or pests could damage the property and create a nuisance and disturbance to your daily life. To avoid these issues you must take measures to make your rental properties safer.
There are two ways of improving the value of your rental properties: one is by repairing existing damages and the other by increasing the market value of the property. One of the easiest and economical ways of making improvements to your rental properties is through house repairs. If you make small repairs to the most obvious problems such as leaking pipes or cracked walls, these repairs will be considered as primary residence improvements. These repairs would be eligible for tax-deductible expenses.
Major repairs, on the other hand, would be regarded as secondary residence improvements. In this case, the repairs must be made to accommodate major renovations which will add value to the house. If the homeowner decides to change the layout, add rooms or build a garage or add a swimming pool to his rental property, these will be considered primary residence improvements. The only way to determine if these are repairs that should be added to your taxes is by requesting an appraisal.
There are other ways to save money on taxes by making improvements to your rental properties besides minor repairs. For example, landscaping can help improve the appearance of the property. By increasing the landscaping on a piece of land, the owner can increase his property’s visual appeal and thus increase his property’s market value. This is a good way to save money on taxes as well because the owner can deduct the cost of improving his landscaping from his income taxes. Improving the curb appeal of a piece of land is also another way to increase its market value. Improving a person’s front yard to attract prospective renters can be considered as an improvement since it improves the aesthetics of the area and adds value to the property.
Finally, adding more storage space to a home is a great way to save money on taxes since you will qualify for deductions on this expense. In order to qualify for the deduction, the storage facility must be used solely for the purpose of storing personal belongings. It cannot also be used for business purposes. You will not qualify to deduct storage space used for hobby rooms, schools, office, health clubs and fitness centers on your personal residence or any other rental property.