Tax Strategies and 1031 Exchanges to Grow Your D.C. Investment Properties

There are tax strategies available to investors who are looking to own or sell real estate. As an investment, real estate is a tremendously taxed advantage asset class. There are a lot of things you can do to make sure you are optimizing your investment and minimizing the tax consequences of your transactions. Anytime you engage in tax planning or investment strategies, it’s important to be precise and careful in what you do.

The different strategies available for your real estate investments depend on what you want to do and whether your property has been your primary residence or an investment property that you have rented out to tenants. There are associated timelines and paperwork required for each situation. For example, if you are selling a primary residence, that home must have been your primary home for two out of the previous five years. If you decide you want to move out of that home and hold onto it as an investment with the ultimate goal of selling it, make sure you set your time clock five years out. It’s the best way to shield the first $250,000 you earn from the sale of that property.

When you have an investment property that has not been your primary residence for two out of the last five years, you have other options. The best tax advantage in this situation is a 1031 exchange. With this program, you are allowed to exchange one investment property for another and shield the proceeds of your sale from any tax liabilities. As long as you continue to buy new investment properties after selling an old one, you don’t have to worry about the taxes until the final property is sold. There are other details involved in a 1031 exchange, but it generally works out well for investment property owners who want to continue owning investment property. This is a pretty specific and somewhat complicated strategy, and we probably don’t have enough time to go into detail about the requirements and the consequences today.

Contact us at Chatel Real Estate, and we can discuss all of your options and investments a little bit further. We look forward to talking with you.

Why Work with Chatel Real Estate

Chatel Real Estate is a full service firm providing real estate and property management services in Washington, D.C. and Northern Virginia. We have offices in Georgetown, Dupont Circle and Alexandria, Virginia. We believe people like to work with us because they can trust us. That’s at the core of our business success, and there are also some great specific reasons you might want to consider working with Chatel Real Estate.

Experience
We have been doing this for over 60 years. All of us here have a lot of experience helping clients with whatever they need. We really do a good job of putting our property owners and customers first, and making sure all their needs are being taken care of. That might mean caring for a property they have owned for a long time, or selling a property they have lived in for a number of years. It might also mean helping them find a new investment in the area. Many of our staff members have been here for decades. That experience turns into a depth of knowledge about the individual markets as well as the specifics involved in each transaction.

Specialization
At Chatel Real Estate, our professionals all specialize in specific areas and have precise roles. Our property managers will be dedicated to taking care of properties. They don’t have to worry about splitting their time and doing other things. We also have dedicated rental and sales agents who assist our owners in finding good tenants and selling properties. Typically, those roles do not overlap, so each professional has the freedom to do what’s required for their individual area of expertise. An agent has the time to run around looking at properties and a property manager is able to stay close to home, fielding calls and solving problems.

Hyper-Local
Our three offices are in strategic locations that allow us to divide up the market and cover properties close to each office. It’s easy for us to literally walk to one of the properties we manage, in many cases. All of our properties are no more than a short drive away from where we work, so we can get there quickly when needed. It’s also easy for our vendors to come through and pick up a key in the office and then complete the work and come back quickly. This is one reason that vendors like working with us.

Unique and Historic Properties
This local market includes a lot of buildings and townhouses that are converted historic structures. A lot of their systems are not what you typically see in homes. We know the quirky things that might be there, and we have vendors who can help make sure all these historic details are taken care of properly. We only use professional vendors who deliver high quality and reliable work.

If you have any other questions about why you should work with us, please contact us at Chatel Real Estate, and we can talk to you more about the work we do.

Chatel’s New Online Destination

For over half a century, Chatel Real Estate has focused on providing the highest level of customer service to our clients in Washington D.C. Over the years, we’ve had the privilege to partner with many of the capital’s premier landlords, servicing thousands of residences in the process. Today, we are excited to announce the next phase for Chatel Real Estate, as we launch our new website, complete with interactive portals for our clients and tenants. We believe this development is yet another example of our innovative and proactive approach that has long made Chatel Real Estate the leading property management group in D.C.

Interacting with Our Customers

At Chatel Real Estate, we understand the value we provide to landlords. The relationships we have cultivated with homeowners and real estate investors in Northern Virginia and  Washington D.C. serve as the foundation of our business. For that reason, we knew we wanted to build a web destination that would allow us to streamline our connection with our customers.

When it came to creating a dynamic web presence, we turned to the experts at OpenPotion, who are known for their property management websites. Together, our teams have been working feverishly to bring our vision to fruition. We’ve worked to incorporate numerous tools into the Chatel Real Estate site that we believe will help our customers to better communicate with us and share their concerns. From live chat functionality to the dedicated repair requests form, we are aiming to set the standard for property management in the capital.

Reaching New Tenants

Connecting with potential tenants is one of our most important jobs at Chatel Real Estate, and our new site makes it easy to do just that! Our comprehensive listings tool displays photos, complete rental information, and a map of the local area. Best of all, interested renters can submit their application directly from the listing. This new tool allows us to quickly review a would-be tenant’s file and find the right renters faster than ever before.

Catering to Condo Associations

We feel honored to work with a multitude of unique clients, including individual property owners, real estate investors, and large property groups. Condominium associations also serve as one of our valued partners in the real estate industry. The new Chatel Real Estate site provides a comprehensive overview of our services for interested parties, in addition to a fully-functional portal for both condo boards and unit owners. These resources give us the ability to provide an unparalleled level of customer service for the many condo buildings scattered across our beautiful city.

As we look to the future, we are confident that our clients will appreciate the work that’s been poured into the new Chatel Real Estate site. We want to express our heartfelt gratitude to our friends at OpenPotion, who helped turn our grand ideas into reality. Best of all, we look forward to providing our customers with a more impressive customer service experience than ever before, as we prove that we are indeed the best property management firm on the East Coast.