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As a landlord or property manager, you often get friends who think the available property you have would be perfect for them, or for their family members. This sounds like an ideal situation, you get someone you know you can trust who would never do anything to mess up your relationship. Until they do. Here at Day Property Management LLC, we have seen some great situations with renting to friends. However, the scales definitely tilt in the direction of disaster. Here are some of the top reasons to avoid renting to friends or family!


When you’re someone’s friend, their problems are things that you care about. Their child is sick, or they lose their job, you want to support them. When you’re someone’s landlord, you are depending on the income from the rental property to support yourself and your own bills. If you rent to a friend or family member, you create blurred lines that can be devastating. In the above-mentioned situation, as their friend you could offer them your support, emotionally, physically and monetarily. When you become their landlord, you have the option of still offering the same support, but you do so knowing that you’re affecting your income as well. You could offer them a break on the rent or let them pay late, but that means you have to try and get the money to cover your costs in addition to helping them out.

This can also lead into our second reason to avoid renting to friends and family, Entitlement and Expectations. Another aspect of the blurred lines are that the family/friends may not want to be a bother to you. They might have maintenance issues or problems at the property that they don’t want to bother you with. Things that could negatively affect the property in the long term.


“Expectation is the root of all heartache” -Shakespeare

When you’ve been friends with someone for a long time, there are certain things people come to expect.


It could be something as simple as not signing a lease, because you know each other. Or expecting you not to charge them late fees if they don’t pay on time. These may seem like reasonable expectations but they can lead to resentment very quickly. Especially if it happens multiple times. For example, they pay on the 3rd, so you waive the late fees for them since it’s the first time. When they pay on the 10th the following month and assume you aren’t charging them fees it can start to build up that resentment.

As we all know, when we offer something it’s completely different then when someone starts to feel entitled to it. The expectations can go both ways though. As your friend, they may expect you to automatically do small repairs that are generally tenant’s responsibilities. Or things that are usually only done between tenants, like replacing blinds or shampooing carpeting.


Social media is great for so many things but can definitely hinder tenant/landlord relationships. A lot of people don’t think twice about posting things going in their life on social media nowadays. Anything from vacation pictures, to parties, to a new puppy. All things that normally you would be “liking” but when you notice that they haven’t paid rent yet or neglected to ask if they could get the new puppy it can cause tension in the relationship. This can also become an issue if they start posting about how their ‘landlord’ didn’t fix this or that.

Overall, we here at Day Property Management LLC strongly recommend against renting to friends or family members. Over the years we’ve taken over more than a few properties where we have had to evict the owner’s friends or family members for them. In our opinion, it’s a bad situation to get into and you really just have to ask yourself one question. Is it worth the risk of losing the relationship between you and your friend/family?

“A Quote by William Shakespeare.” Goodreads, Goodreads,

Keep Your Home Safe While on Vacation

Keep Your Home Safe While on Vacation


Throughout this article we’re going to go over some of the best tips we’ve found on how to keep your home safe when on vacation. The last thing you want to worry about while sitting on a beach is weather (haha) or not your belongings are safe.

Keep an eye

One of the most logical things to do would be to ask a friend/neighbor to watch your home while you are enjoying some fun in the sun. Providing that person with a key also allows them to bring in your mail. “If you don’t have a garage, you may also want to give this person a key to your car – you never know when your vehicle may need to be moved” (Costello, 2018)


Vacation at last

In today’s world of social media, it’s easy to forget how much information you’re giving to people. Telling all your social media followers about this great vacation you’re planning is great until one of them decides to take that as an invitation to practice their breaking and entering skills. If you’re set on posting about your vacation make sure you mention how nice it was for Aunt Muriel to come and housesit while you’re gone (or Uncle Les, or whichever fake relative you want to use).  Also, be careful about the message you leave on your voicemail whether a landline or cell, as you do not want to perk up any mischievous ears.


Police Contact

For added security and peace of mind you can also alert your local police department that you will be gone for an extended period of time. They may or may not take an occasional cruise past your residence to see if anything appears out of the ordinary. Smaller municipalities would probably be willing to do this versus larger metropolitan areas. If you’re renting you should also always let your landlord know that you’re going to be out of town. If your landlords are like us here at Day Property Management LLC, we’ll make a point of driving by more often to make sure that everything looks good.


Blinds and Curtains

To open or to close – that is the question. Open window treatments are an invitation for prying eyes but closed  treatments prevent people that want to assist you with keeping your home safe. The best solution is to leave them exactly the way you normally leave them. So as to not alert undesirables from noticing the changes. If you are having someone stop by to bring your mail in or just check on the house every day (or every few days) you could have them alternate the blinds occasionally as well. However, make sure not to leave any jewelry or valuables in clear view. No reason to tempt the local troublemakers.


That’s A Bright Idea

Lighting is yet another way of making your home look lived in. Buying an inexpensive timer and have your lights go and off with your normal routine can make a huge difference. You don’t want to jack up all your energy bills by leaving the lights on all night, plus lights on all night gives the appearance of something just not right.


Mail and Other Deliveries

This should go without saying but stopping your mail delivery is one of the most important things you can do. This helps to avoid someone seeing that you are not home. Accumulated mail is a sure sign you are gone. Any other package deliveries or newspapers should be put on hold as well. Unless you have someone set up to pick them up for you right away.


Freezing Pipes

Not so much a security issue as a major problem if you live in a colder climate. Make sure you set your thermostat to a reasonable temperature that will not allow your pipes to freeze. We usually suggest keeping the temperature at a minimum of 50-55 degrees. Wrapping your pipes with heat tape is another smart way to avoid this issue. This is also a smart reason to leave a key with someone trusted. If there are any problems with your pipes it can be caught early.


Unplug Your Life

Unplugging your electronics is the safest way to protect them from power surges and outages. It will also save you a few bucks from not using the electricity it takes to run these items.


Last but….

Not least is to remove the spare key that you have hidden above the door or in the fake rock on the porch. Someone casing your home is going to look for a spare key in all the normal places.


Take these steps to avoid a potential thief from entering your home and enjoy the peace of mind that comes with not having to worry about this stuff while you are enjoying your vacation.


Costello, Caroline. “How To Keep Your Home Safe While On Vacation.” SmarterTravel, SmarterTravel, 27 Sept. 2018,

Winterizing How tenants and landlords need to work together

WINTERIZING – How tenants and landlords need to work together!

When winter arrives, there isn’t much you can do outside. You’ve finished all the yard work and winterizing of the yard equipment If property owners and tenants work together, winterizing the inside of the property can be a breeze.  


First of all, tenants need to know what they need to do and what tasks are on the landlord’s list.  

 According to the Wisconsin way, a landlord is responsible to keep a property temperature above 67 degrees. This means the furnace needs to be in working order.  

 Depending on your lease, a landlord may provide salt for the sidewalks and driveways and possibly provide snow removal equipment, such as a shovel. However, a property owner must maintain the safety of the rental unit. Keeping sidewalks and driveways clear from ice is a safety issue.  

 Insulating any outside pipes can keep them from bursting when the temperature gets below 20 degrees.  

 Making sure smoke alarms and carbon monoxide detectors are working is always a concern for property owners. With less traffic in an out of a house during the winter, and adding weatherproofing to windows and doors, air does not circulate as much as it does during other seasons. 

 The law does not require landlords to winterize the inside of the home. Some things tenants can do to make the inside comfortable and safe during the winter.  

 Put plastic on the windows This adds a barrier against heat loss, keeping the cold air out and warm air in. There are many kinds available at home improvement stores. 

Be safe with holiday decorations Tenants don’t consider the electric load on outlets or how many strings of lights should be strung together when decorating. To not trip breakers, consider the amps that will kick on when you flip on the lights. Not overloading circuits can go along way to the life of a breaker.  

Use portable space heaters safely Heaters can be a nice extra in a room that seems cold. It might also make sense if you have gas or electric heat to do what you can to switch to the more inexpensive heating source. Try to space out your small appliances. Having a heater on the same circuit as the television and cable, may cause issues.  


Other things tenants should consider when it comes to winterizing their home.  

 If you have a vacation planned, set the thermostat to 67 degrees. The law states that the unit maintains 67 degrees for a reason. When no one is home to make sure there are no maintenance issues, if the temperature suddenly drops, frozen or busted pipes can cause a lot of damage.  

 While most property management companies require tenants to have renters insurance, it may not cover water damage. You may think to save on costs while you are away but coming back to frozen pipes and having to call in professionals will eat up any savings.  

 To be a little nicer during the holiday season, inform your landlord or management company about your vacation. They can plan to send someone over halfway through to make sure nothing has happened while you were away.  

When both parties know about the expectations for winter safety and winterizing, tenants and landlords can work together to keep the home safe. 

Should landlords allow tenants to decorate?  

When you move into a new apartment there’s always an urge to add your personality to the monochromatic environment. As property owners we understand. As rental business professionals, there’re risks involved when tenants want to decorate. Should landlords allow tenants to decorate? If so, what should property management companies allow? Are there any temporary decorating ideas a tenant could use that are inexpensive and safe for the property?


Why property management companies shy away from letting tenants decorate, or make permanent changes. 


Have you lived in a rental property and you thought, “Oh, it would be nice if I had a shelf in the living room to display my decorations.” So, you get the shelf, you find a drill and screws and set to drilling holes only to find you didn’t hit a wall stud and the screw went straight through the drywall. So, you pull it out and try again. The same thing happens. You think the third times a charm and give it a go. Voila, you hit a stud, at least on one side. So, you try the other and you get lucky. You can now hang your shelf. After the shelf is in place, you take a step back to admire your handy work and you see holes. Small screw holes all around your shelf.


This is the main concern landlords have when tenants take it upon themselves to make improvements. By not having the knowledge to do the job once, small mistakes are going to happen which could lead to bigger repairs. In our shelf example, when that tenant moves, the painter fills the holes and paints over the area, leaving a blotchy look rather than smooth walls. And this is for a minor decoration.


Most property owners allow non-permanent changes with a clause in the lease for remediation. 


Your lease will probably say you can or can’t make property changes. But, if you do, you need to change it back to its original condition when you moved in. Meaning if you paint the bedrooms blue, red, pink or orange and it started as a white room, you need to paint it white before you move. This is remediation. You may be thinking, “Well landlords have to paint anyway so why would it matter?” It matters because the wear and tear clause in your lease covers normal use. There is no need to paint a room a different color. As a result, this is an extra expense the tenant will have to pay for out of their security deposit.


So what are some ways a tenant can safely decorate and still be in lease compliance?



Shelving units are a great way to showcase your decorations and not put a hole in the wall. Shelves are something you’ll have for as long as you take care of them.

Allowing you to be as frugal or extravagant as you’d like when picking one that works with your decor and budget.



A stylish leaning or framed mirror can be a great accessory to a living area. Mirrors add depth and light to any space. Instead of hanging it, lean it. There are some very nice looking leaning, framed mirrors on the market. With a little searching, you’ll find one that works for you.



This is an important word for any fashion minded person. By adding pillows, rugs, garland and other non-permanent accessories to your living spaces you liven up your home very inexpensively. Pops of color from blankets and lamps can really add depth to your home in a beautiful and safe way.


There are many other ways to decorate in a semi-permanent way if you do a little searching. Personalizing your home in a way you can take with you is more of an investment than a one time purchase. Consider items you’d really enjoy and want around for a long period of time. Landlords like to see tenants taking pride in their homes. So have fun and decorate.


If you don’t have your lease handy and you’d like to review decorating clauses call Day property management at 920-968-0626 or email us through the contact form at

Be Proactive to Prevent Winter Vacancies 

How To Prevent Winter Vacancies


It’s that time of year again. The time when you don’t want tenants to even think about moving for the next 6 months. Yet, looking over your lease agreements and occupancy dates, you know tenants are going to want to move out during these frigid months.


However, if you make a plan for winter vacancies, they will become easier when they do happen. But they will also become a thing of the past.


Here are some ways to skip those winter vacancies.


Extend your occupancy dates 


This is the easiest one to have control over. When a tenant moves into your unit from November to March, consider offering an 18-month lease instead of 12. This puts a November tenant on a moving schedule of June 1, if they don’t renew. Could you offer a small discount for them choosing an extended lease? It may seem silly to lose money on a monthly basis. But a discount is cheaper than having to turn over a unit in the winter. A discount is also cheaper than heating an empty apartment for months.


Shorten your lease period


This might be a little riskier as you’ll have more turnover, but you’re more likely to be full during the winter. Weigh the pros and cons before you decide to go to 6 month lease periods. If you choose to offer 6 months, try to only do so for leases starting between November and March. Keep the traditional 12 months or extended 18-month options for all other new tenants.


Offer renewal incentives


Is there something low cost to you, but would increase value for your tenant? Maybe it’s winter equipment or weatherproofing materials for inside the unit. Maybe you could offer a gas or grocery gift card for renewing with you. These small tokens might be the right incentive necessary to keep your tenant renting from you. You should start these conversations a few months in advance. This keeps the tenants happy and you aware of their plans.


Talk to your tenants


Ask your tenants what would help them. Having a conversation with your tenants about what they’d like to see, would help you and build trust. Treating your tenants with respect will show them you care and they’ll be respectful in return.


Start new leasing policies with any new tenants from November to March. This can help keep your rentals full during the winter months. If you have a question or would like to implement an alternative lease agreement fill out our contact form at contact us or call Day Property Management at 920-968-0626 to start today.

Tenants And Landlords Prepare For Winter

When winter hits Wisconsin, it’s easy to lose sight of necessary outdoor activities. When you own rental property, building maintenance and tenant safety move to the top of your to-do list. During the winter months, both tenants and landlords have parts to play in keeping the rental property safe and winterized.

Landlord Responsibilities

As a landlord, you must be able to provide a rental unit that can maintain an inside temperature of 67 degrees Fahrenheit, according to the Wisconsin Way. The residential lease agreement should explain all expectations regarding maintaining snow removal, ice prevention and weatherproofing.

Tenant Responsibilities

The standard lease agreement should clearly state who is responsible for winter maintenance. For example, if the lease states the tenant is responsible to clear the snow after each snowfall, then the tenant or anyone the tenant hires is responsible for snow removal. Tenants may incur fines if they’re responsible for snow removal if city maintenance crews do it.

Read your lease agreement fully and carefully to escape any unnecessary fees this winter.

Winter Misconceptions 

There is a misconception out there that landlords must provide weather-proofing materials for inside the unit. Such as plastic for windows or weather stripping for exterior doors. While maintaining the windows and doors to be able to hold 67 degrees is necessary, providing extra weather-proofing is not.

If there is a concern with heat loss through windows or doors, tenants should contact property management company or owner to correct the problem.

However, if windows and doors are in good condition but the tenant knows when the wind blows just right the windows leak, they may want to purchase some plastic from a home improvement store.  These are daily maintenance items no owner or management company would know unless tenants informed them.

Snow Removal Equipment

There may be a statement in a lease about snow removal equipment or salt for sidewalks. Pay close attention to who is responsible to take care of that and if there is a time-frame given.

Winter weather is unpredictable. If a lease says the landlord will drop off a shovel and salt by October 31 but it snowed enough on the 18th to warrant shoveling, tenants will have to buy their own.

If landlords and tenants work together winter maintenance can be a piece of cake. For 9 steps you need to take to winterize a rental property visit our blog here.

Call Day Property Management at 920-968-0626 or fill out our contact form to be sure both you know your role this winter.

All Your Rental Questions Answered

All your rental questions answered

Even the ones you didn’t think to ask?


Renting an apartment is all about trust. The tenants trusting the landlord and management company and the management company or landlord trusting the tenant. There’s never just one side when it comes to a rental agreement.


However, landlords often have the upper hand as they know the building. They know issues other tenants have had and if they’ve been fixed. Landlords are in control of the property, as they should be. They own it. When they rent it out there’re strict guidelines set by the state that all landlords need to follow. The guidelines also explain the rights tenants have and don’t have when it comes to rental property.


If this is your first time renting you want to make sure all of your questions are answered before you sign the agreement.


As a landlord, this helps to know both parties are on the same page allowing you to rent in good faith. Tenants need to be asking the landlords much more than the rent amount, which utilities are included and if they allow pets. We’ll discuss these and many more in this list.


Before even considering to rent, you need to have your finances in order.


At the bare minimum, most rental properties require a security deposit, which is usually equal to one month’s rent, plus the first month’s rent payment before moving in. Be prepared with this amount in advance as there are very few if any, landlords or management companies who will let you move in without full deposit and rent.


When you fill out the rental application, be honest. If you are going to bend the truth about your income, being evicted, having pets when you shouldn’t have or breaking your lease, a landlord may not trust you to be on time with rent. During the application process, there will be a credit check, employment check and references will be called. If this is your first rental, you will need a co-signer such as a parent to vouch for your character and be responsible if you don’t pay. Be aware there is an application fee. The fee varies between $25-$100 depending on how many people are applying and the city you live in.


When looking at rental properties you need to be sure you can afford the rent and any other costs involved such as utilities. To be sure you’ll stay within your budget, don’t apply for any rental unit that costs more than 1/3 of your total take home pay.


As an example, if you make $11.00/hr and you work full time or 80 hours each pay check, you’ll take home around $1440 as a single person with no dependents. For rent purposes, your home should be 1/3 of your take home or no more than $480/month.


This calculation ensures you have enough to pay utilities, other expenses such as food, vehicles, and fuel.


Ask the landlord about the location.


Make sure the neighborhood is safe and you won’t have to deal with loud neighbors. Obviously, your landlord can’t control what happens when you live in the home. They might know if previous tenants left due to noise or safety concerns.


If you are considering a pet, be sure to ask about the policy.


Not all landlords allow pets. If they don’t and you decide to get one, you can be evicted for a lease violation. A pet policy will explain if there are any breeds they don’t accept if you have a pet deposit if you have a monthly pet fee and much more. Don’t make any assumptions when it comes to animals. Be sure to ask.


If you are single and have guests over often, be sure your lease doesn’t have a clause about the length of stay before guests are considered tenants.


Some rental units allow guests for 10 days but by day 11 they will consider them to be a new tenant and require an application be filled out. Having roommates might be a good idea to help with the cost of a rental, but do it the right way. Have your potential roommate apply for tenancy ahead of time and you won’t be violating your lease.


Also, be clear about subletting and what’s allowed or not allowed. Subletting can be a benefit if you travel for school or work. If you are willing to have someone take care of your apartment while you’re gone, this could satisfy the visitor clause. Plus with a person already approved a sublet could save you time and money in finding a new apartment. This could also help if you decide to cancel your rental agreement and need to get it re-rented. Not all owners allow subletting but may with an approved tenant, so know all your options.


Find out who is responsible for maintenance, repairs and damage that may occur.


Tenants often assume the property owner is responsible for all maintenance and repairs. Most do take care of it before a tenant moves in. Read your lease closely and be sure to ask about how repairs are handled. Especially if that changes after you’ve lived there for a few months. Often if the damage or needed repair is due to the tenants or guests’ actions, tenants are responsible to fix it. If the issues were something out of the tenant’s control, most landlords will bring in the right professionals to fix it. Your lease should have it laid out but if not, be sure to ask.


Renting a home is different from renting an apartment. When you live in a neighborhood you need to follow the neighborhood rules. Things you may not consider like who does the lawn and snow maintenance. If there are any noise policies for the neighborhood or parking during the winter months.


Before signing a lease, make sure you can fulfill all the requirements.


If you don’t own lawn or snow care equipment, ask your landlord to provide them. If you have scheduling conflicts to maintain the property regularly, ask if you could pay to have them taken care of. Most cities have ordinances stating there is quiet time after 10 pm and no loud noise before 7 am. Check with your landlord to make sure a simple get together in the backyard is not going to cause an issue with the local authorities.


The bottom line when renting, if you don’t know…ask.


Your landlord is required to answer questions to the best of their ability. If at any point in the discussion, you feel you can’t trust the property owner, don’t rent from them. In reverse, be honest and respectful of the property. Landlords are providing a service. They have probably dealt with dishonest people a time to two in the past. Which means they may not be as forthright with extra information about the property. They aren’t required to tell you every detail if it doesn’t pertain to your safety during your tenancy. Be sure to ask if there is something specific you want to know.


As a property management company in Appleton, Day Property Management has experts able to help you navigate the rental process. Contact them today to get your questions answered. You can reach them at 920-969-0626 or fill out their contact form.

13 Fall Maintenance Items To Tackle

Cooler weather is here. Gone are the 70-degree days. It’s dark by 6:30 pm and yes, the leaves are falling off the trees. For property owners this means, it’s fall maintenance time.


Which maintenance items do you focus on for the fall?


We’ll walk you through all 13 of them.

Before you start tackling projects, it’s easiest to break them into exterior and interior tasks from the top to the bottom of your building.


Clean out the gutters and downspouts

Having dried leaves and seeds from trees clog your gutters and downspouts can spell disaster. Water sitting in a low area due to improper drainage causes Ice dams and roof leaks. One of the easiest ways to prevent roof repairs is by keeping gutters and downspouts clean.


Check out the roof

While you are on the ladder cleaning gutters, take a glance around at the shingles. Are they all securely fastened and in good condition? If not, secure them now before the snow flies to prevent further damage.


Seal up window and door frames

As you’re looking at the roof, take a peek at your window and door frames. If any gaps have formed due to settling or improper installation of wrapping or siding now is the perfect time to seal them up. You can find all-weather caulking and insulating foam at all the major home improvement stores.


Exterior repairs

Inspect around the exterior foundation for any gaps or cracks small critters could use to move in. If you find you have an issue with pests already call an exterminator. If you’ve caught it in time, seal the cracks and gaps with the proper wire, cloth, Quick create or sealant to ensure against unwanted visitors.



Landscape repairs

Walk around the property and check for uneven sidewalks and places water could pool and freeze causing safety issues for tenants. Have all railings and porches inspected for loose or rotten wood and repair properly.


Landscape clean-up

Mow and rake up all the dead grass and leaves. You’ll want to trim trees and bushes to prevent dead branches from breaking over winter and damaging property. Be sure to clean your mower and store it over the winter for use again in the spring.


Autumn is a great time for some deep cleaning and sealing up any weatherization issues.


Let’s take a look at the interior of your rental property.


Heating system

Turn your furnace on early to make sure everything works. Change out your furnace filters. If there are any issues, bring in an HVAC tech to fix it for you.


Insulate any basement piping that lines outside walls, also turn off the water to outside faucets and be sure to drain all your watering hoses.


Chimney and fireplace

Clean out your flue in your chimney before you start having fires in your fireplace. Remove all the ashes and add them to the garden for extra nutrients over the winter.



Seal up any drafts and make sure any vents to the exterior are clean and not blocked. The attic needs to breathe to release humidity from the home.



Replace the batteries in your smoke and carbon dioxide detectors. If they aren’t working, replace them.



Check the weather stripping on doors and windows. They help prevent heat loss during the cold winter months. If you have older windows, now would be a good time to install a piece of plastic over them to help keep heating costs down.


Deep cleaning

Fall is a great time to move appliances and furniture and attack any grime or dust lurking there. Just like spring cleaning, fall maintenance allows you to schedule cleaning out the oven or washing down in the inside of the refrigerator if you’ve been putting it off.


As a landlord, you may rely on your tenants to handle the interior maintenance and cleanings. You might also hire it out to your management company to handle it for you. Day property management partners with Integrated Property Solutions for all rental maintenance. You can contact Integrated Property Solutions at (920) 968-0626 or fill out their contact form.

What You Need To Know About A 1031 Exchange?

1031 exchanges can be an excellent way to safe guard the real estate wealth you’ve built. What is a 1031 exchange? How can you use it to your advantage as a property owner?


A 1031 exchange is a tax-deferred exchange for like-kind property. When it comes to rental property you can use it to sell a property and invest the money in another property without paying capital gain taxes on any profit.


There’re some rules you must follow for restrictions on types of property and the timing of the exchange.


The understanding of like-kind properties is important. Like-kind refers to the same purpose and usage. For example, if you have a duplex you rent out you can exchange it for any other type of rental property. This includes an apartment, hotel, parking lot, self-storage, single family home and much more. You need to look at the property in terms of use and not necessarily the type.


Some properties will not qualify for a 1031 exchange. 


According to the tax code, they include


-property purchased for resale or “flipping” rather than rental

-your primary residence


-personal property not owned by your company

-property outside the U.S


Having a better understanding of the types of properties qualifying for an exchange can open up many possibilities for property owners.


Timing is the second issue in a 1031 exchange. You don’t need to sell and buy a property simultaneously. You do have some time limits you need to consider. These time limits are not flexible. You can’t ask for an extension.


When doing an exchange:


You must identify the new property within 45 days of closing on the sale of the original property. You can identify upon to 3 replacement properties. Identification must be in writing, be specific, and be given to an exchange intermediary or facilitator.



You must close one of the new properties you’ve identified within 180 days of closing on the original property.


You must use an exchange intermediary or facilitator for your transactions. They handle all the documents, the transfer of title on each property and sale and purchase funds. Who you choose is as important and what they do for you. They must be a third party. They must not be family or anyone with whom you’ve had a previous business. This includes your banker, attorney, title company, real estate agent or brokers, you’ve worked with in the past.


The titling and fund reinvesting process for your new property have more regulations to follow.


The title of the new property should be the same as the old property. For example, if the title was in the name of XZY company LLC, the title of the new property should also be in their name. You may run into problems if you are liquidating an old partnership or LLC. Your facilitator can help you through this strategy if you need to liquidate a company.


When it comes to reinvesting the money from the old property into the new property, the new property must be of equal or greater value. To keep 100% of the profit tax deferred, you have to make sure any cash or property purchased follows the equal or greater value rule. The IRS has rules about receiving cash and could result in taxes being paid on a new amount received. Speak to your trusted tax advisor for advice if you plan on taking cash from the purchase.


With all these rules and regulations, why would anyone want to do a 1031 exchange?


There are many advantages to an exchange.


Deferring taxes is the largest advantage to a 1031 exchange. If you are a buy and hold owner, this can be an ideal way to upgrade property over time. This can save you money due to less maintenance and management costs. Other tax benefits include a lower depreciation recapture and possible lower tax rates when you do sell.

There are a few disadvantages.


The disadvantages are the tight rules and regulations in identifying and purchasing a new property through a 1031 exchange. Capital gain tax is only deferred until you sell the new property. It is a possibility tax rates will increase instead of decrease causing you to pay more in taxes upon final sale.


When considering sell and buying rental property through a 1031 exchange, look at all the advantages and disadvantages. Consider how each will affect you and your business. Make the best decision for your goals.


For recommendations of 1031 exchange facilitators contact Day Property Management at 920-968-0626 or fill out our contact form.

9 Affordable Upgrades To Your Rental Property

As a property owner, keeping your rental in good condition can help attract better tenants and higher rents. Rental upgrades during turnovers can help.  Here are 9 affordable upgrades that will add value to your rentals.


Wood flooring

Keeping your rental flooring looking nice through multiple tenants is hard. Carpeting is easily stained and with pets can take major abuse from claws and teeth. Tile can crack and is not cheap or easy to replace. Wood flooring used to be all there was back in the day. Wood is durable and beautiful. When waxed and sealed regularly or between tenants, can last a lifetime.


Updating your kitchen and bathrooms

In a rental, you don’t need to put in luxury items like granite unless it’s a luxury rental.  Nice, affordable improvements will look classy and boost the value.  Consider resurfacing the cabinet doors and resurfacing the counter tops.  This is far less expensive than replacing all the kitchen and bathroom cabinets and counters.  With most resurfacing applications, you can’t tell the difference between quartz and a surface enamel. Cabinets and drawers can come to life with a little paint and new hardware. Adding a back splash to your kitchen walls will also add the rooms appeal and value in the renter’s eyes.


Molding on baseboards

Continually replacing flooring can have its toll on baseboards. They scratch and break during tenant turnovers.  Replace any abused baseboards with new pre-painted or pre-sainted baseboards from your local home improvement store. It will add a touch of class to the paint and flooring and show you like the rental to look good.

Spacious closets or built-in storage

Rental property often lacks storage. If you find you have some useless space in a corner or along a wall, consider adding a closet or built-in.  You may even consider enlarging a closet in the bedroom if the area doesn’t work well with other furniture. If possible, add storage to the garage attic or basement with shelving and fencing if you have multiple tenants.  When you look at the budget for repairs, an exterior shed will add value and storage options for your tenants.


New paint

Most landlords repaint between tenants. The most popular color is white.  It’s easy to match. It’s easy to grab and brand and repaint. However, white gets dull and boring when used all the time. Consider other colors. Visit new construction homes or parade homes to get ideas about what they are using for color schemes. The tan or warm grey makes the house feel homey and cozy instead of the cold, drabness of white.


Updating hardware

We’ve discussed how new handles and pulls can make your kitchen look updated. You should also consider swapping out door handles and other cabinet pulls throughout the house.  Brass finished handles were trendy in 1975. You can find affordable replacements, that fit the era and give an updated look to the home.

Updated lighting

Energy efficiency should be high on your list when considering affordable improvements.  While the upfront costs might be a little higher, they will pay for themselves over time.  New LED lighting and fixtures last longer than incandescent bulbs by 25-80%. Saving you 3 times the energy costs.  Updated lighting also looks nicer than the standard brass fixtures and can add value and class to any room.



While this might be a little more expensive than the rest of the affordable updates listed, tech adds value to your tenants. Tenants can control a smart thermostat from any device and online. If a tenant goes on vacation or is away for a few days, they can easily lower the temperature with their phone or computer. Smart door locks adds built in security. They are re-programmable. Tenants can control them with any device. Of course you can still use a key instead of the code to lock and unlock the door. If you offer internet as an amenity, installing a WiFi router would add value to your tenants.


In unit washer and dryer

Visiting a Laundromat to wash and dry clothes is a hassle. If you have the space, consider providing a washer and dryer for your tenants.  It could be coin operated if you think there will be high usage and to help with replacement and repair costs.  Tenants will appreciate being able to clean their clothes at home.


When considering upgrades that add value consider items with durability and will last long term. They may have a higher upfront cost but will be worth it over time.


Day Property Management can help you decide which improvements would be the best for your rental property.  Give us a call at 920-968-0626

or fill out our contact form.

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