Welcome Homeowners: Partner With Us to Create a Better Future

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At KoKo Menage Housing Project, we are dedicated to reducing recidivism and creating safe, supportive environments for justice-impacted individuals. As part of our mission, we are seeking 3-to-5-bedroom homes to rent where men on parole can live while rebuilding their lives. By partnering with us, you can play a vital role in fostering community growth, stability, and safety.

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Why Rent to Us?

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Renting your property to our nonprofit comes with numerous advantages:

1. Stable and Reliable Tenancy: As a nonprofit with government grants and dedicated funding, we ensure timely rent payments through secure banking channels.

2. Professional Property Management: We maintain properties to the highest standards, performing quarterly maintenance such as carpet shampooing, painting, deep cleaning, and landscaping.

3. Long-Term Commitment: We seek annual lease terms and aim to build lasting relationships with property owners, providing security and stability for years to come.

4. Protecting Your Investment: We go above and beyond to keep your property in excellent condition, ensuring its value is preserved and enhanced over time.

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Renting your property to a nonprofit public charity, like KoKo Menage Housing Project, can offer several potential tax benefits that make this partnership financially appealing. Here’s an overview:

 

1. Tax Deduction for Charitable Use​

If the rental agreement meets certain conditions and aligns with charitable purposes, you may be eligible to claim a tax deduction for offering the property below fair market value or for waiving part of the rent.

• Example: If you discount the rent for a nonprofit that operates as a 501(c)(3) public charity, the difference between the fair market value and the rent charged may be deductible as a charitable contribution.

• Key Requirement: The nonprofit must be a recognized 501(c)(3) organization, and the lease agreement must specify that the property will be used for its charitable purposes.

 

2. Property Maintenance and Upgrades

Nonprofits like KoKo Menage Housing Project often cover maintenance and property improvements as part of their lease agreements. These enhancements can:

• Reduce Expenses: Routine maintenance, landscaping, and other upgrades save you money in the long run.

• Increase Property Value: Improvements performed by the nonprofit can enhance the long-term value of your property.

While these savings are not direct tax benefits, they indirectly improve your financial position.

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3. Income Tax Reporting

Rental income received from a nonprofit is treated as taxable income, just like any other rental arrangement. However, because nonprofits are often reliable tenants with secure funding sources, landlords benefit from:

• Predictable Income: This stability ensures steady, reportable income, which simplifies tax planning.

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4. Avoiding Vacancy Loss

By renting to a nonprofit, you can avoid vacancy periods, ensuring continuous income. Nonprofits often seek long-term leases, providing a dependable financial return.

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5. No Unrelated Business Income Tax (UBIT) Impact

For the landlord, renting to a nonprofit generally has no impact on UBIT (Unrelated Business Income Tax), which applies to nonprofits themselves, not landlords.

 

6. State-Specific Incentives

Some states offer additional tax breaks or incentives for renting to a public charity. Check with a tax professional to explore local options in your area.

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Consult a Tax Professional

To maximize these benefits, consult a tax advisor who can guide you through the requirements for claiming deductions or understanding how renting to a nonprofit fits into your overall tax strategy. They can also help ensure compliance with IRS regulations and document the charitable use of your property effectively.

By partnering with a nonprofit, you not only support a meaningful cause but also enjoy financial advantages that can make this decision mutually beneficial.