My big goal for 2014 is to treat my rentals as a proper business.
That means raising rents, addressing deferred maintenance, converting one space from residential to commercial (a big involved deal), making sure all insurance is adequate, formulating my plan for the future. I would like to involve my older kid, age 19, in this process, at least as an observer. I want him to see what things cost and how one deals with professionals (architects, real estate brokers, etc.) and tenants.
Next, I want to use YNAB faithfully and optimize my personal and business spending.
Finally, once I feel the rental situation is set up optimally, I actually want to go back to work part-time. I miss working with other people and have been finding myself reading the Help Wanted ads wistfully.
1) Being more businesslike on the rentals:
-- Raised rents by 7.2%. Plan to raise them a further 3%-5% when leases are up this year.
-- Increased insurance on principal rental. Debating whether to boost liability above $1M (costs substantially more, but I think it may be worth it.)
-- Began the large, costly masonry job that was looming. Got a good estimate; job's not done yet so can't quite claim success. But a start has been made.
-- Made a plan for giving the potential commercial space more curb appeal. Did not do the conversion yet, as current residential tenants in that space are super-reliable. Had a couple phone conversations with a reputable commercial rental broker familiar with the area. Laying groundwork.
-- Made an appointment to meet with a trust attorney early in the new year. Want to discuss exit strategies for the highly appreciated rental property. Want to explore charitable remainder trusts as a way to minimize cap gains/depreciation recapture.
-- Brought 19-y-o and 17-y-o, separately, to the property to deal with service providers. Trying to spark their awareness/interest. So-so results.
Budgeting:
-- Used YNAB faithfully all year and I cannot express how much it has helped me get control of my finances. Also, my tax info has been super-easy to organize.
Part-time work:
-- Agreed to work 2.5 days per week at friends' art-supply store. Nice customers, good products, fair prices. Not much $$, but it's social and will let me put a little $$ into an IRA.
So, by and large, mission accomplished! Time to start thinking about 2015.