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Owning homes in multiple states is convenient in many ways, but it also creates unique challenges. From managing security to figuring out where to pay taxes, there’s a lot to consider with multi-state living, especially when you own a business. For more on how to navigate this scenario, check out these tips from ParkSide Realty Group.
1. Select a Primary Residence
Though owning two residences can double your expenses, there are ways to cut costs. For example, examining the cost of living in both places can help you decide which to select as your primary residence. Plus, if you’re not yet ready to buy a second home, there’s always the rental option. Use a real estate portal online to find what properties are available. There are plenty of options in Palm Coast, where the median sale price for homes is currently under $352K. Choosing a primary residence where costs are lower can mean more affordable health insurance, car insurance, and more. Purchasing a vehicle may also be cheaper in one state versus another.
2. Find Ways to Save
Another way to save while maintaining two households in different states is to plan larger purchases carefully. Sales tax varies across the United States, so waiting to buy big-ticket items in a lower-tax state may be doable.
If you drive between multi-state properties, research gas prices before heading out. Prices can vary by up to a few dollars across state lines, so it’s worth planning your drives carefully. Also, be sure to look for product reviews and deals on items you may need at multiple properties, like a vacuum cleaner or an air quality gauge.
Even small steps like growing a garden and buying in bulk at both properties can help save on household costs. Bringing streaming devices back and forth is also a cost-effective measure with multi-state living.
3. Review Your Business Designation
You likely already have a business designation, but is it the right one for you at this stage of your career? Review your options and investigate the pros and cons of S and C Corps. You may find that the taxation details make one more advantageous for you now.
When you run a business, it’s hard to do everything independently – especially while traveling. Designating a registered agent may be required in your state, notes SCORE, but it’s always a good practice to ensure operations run smoothly. For example, if something serious like a tax notification or lawsuit comes up while you’re away, your registered agent will receive the documents and notify you.
4. Invest in a Home Warranty
With two properties to maintain, keeping them both in top condition can become complicated. One way to avoid expensive and time-consuming repairs or replacements, consider a home warranty for both properties. With most home warranty companies, Bob Vila points out that you can enroll in an annually renewable contract to cover heating, cooling, plumbing, electrical, and other systems breakdowns. Read reviews and the policy details to find a policy that fits your needs at each home.
5. Safeguard Important Documents
As a business owner with a property portfolio, you have many documents to keep track of. Using a combination of cloud, digital, and hard copy storage ensures your files are secure yet accessible. Many cloud storage services offer free or low-cost file saving, which you can access via WiFi or your smartphone from anywhere in the world. A physical hard drive, thumb drive, or other portable device allows you to transport files without signing in. Keeping hard copy documents in a lock box that travels with you can also offer peace of mind and convenience.
6. Build Community in Both Places
Multi-state living arrangements can make it difficult to keep an eye on your property at all times. Yet there are ways to protect your belongings and keep current with what’s happening. Work on building community and adding tools to check up on your homes.
Meeting the neighbors and joining local associations (for business owners or otherwise) is one way to build relationships with neighbors. This is where a well-designed business card comes in handy. Business cards may seem like a relic of a bygone era in today’s digital age, but they continue to hold significant importance in the world of networking and professional relationships. These small pieces of cardstock serve as powerful tools for making a lasting impression and facilitating connections.
While you’re away, good neighbors can watch out for trouble and contact you if needed. More formal neighborhood groups like Neighborhood Watch add another layer of responsiveness if there’s a problem. But adding security cameras to your property can also offer peace of mind. It’s also a way to check in on weather conditions, pending deliveries, and more.
Master the Art of Multi-State Living
From setting up a registered agent to enrolling both your properties in home warranty programs, there are many smart strategies for managing multi-state living. By finding ways to save and keep organized, you’re free to enjoy the best that each of your homes has to offer.
ParkSide Realty Group is here to help you get the best deal available. Call 800-931-2071.