Tip #143: Political Theatre
The short fix to end the bickering was a two-month extension, which will expire February 29.
Congressional leaders say a longer extension will be passed, but with all the drama lately, whether Congress reaches a compromise to extend this tax cut again is entirely up in the air.
If they don’t reach an agreement, your rental applicants may start seeing smaller paychecks later in the year.
Overall, a payroll tax increase probably won’t make a huge difference in the tenant’s ability to pay rent–but, if you are considering a prospect whose budget is already tight, that extra $80 or so per month could add up, until you are looking at late rent payments.
It’s unlikely that renters will be budgeting for this contingency, so you’ll want to keep it in mind and stay one step ahead.
See last week’s Landlord Quick Tip.
American Apartment Owners Association offers discounts on products and services for landlords related to your rental housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.