Owning some property that you can rent out can really help your monthly cash flow. It can also get very expensive if you are taking care of a living space after all.
There are a lot of potential costs that could be associated with owning property, and that is outside of the expected costs like the mortgage and property tax. It is important as a landlord or property owner to save money wherever you can. Here are a couple of tips to do so.
Repairs
The value of repairing over replacing can’t be overstated. Many people want to get rid of an appliance that has some issues. Rather than kicking that item to the curb, you should try fixing it.
If you are able to do some home repairs by yourself, or have a property management group that offers those services, take advantage of that. It would cost you the total of the replacement part and some of your time. Worst case, have a repairman take a look at the damaged item. It will be far less expensive to fix it rather than replace it.
Tenant Responsibility
It is ultimately up to you to decide what expenses the tenant will have to cover, and what you offer as a benefit of living in your property. For example, if you have storage space you might charge a small fee for usage.
I had neighbors once who were renting their place had the benefit of the owner paying for lawn services. It was an awesome benefit for them, but a totally unnecessary expense. It would have been a far better financial decision to buy a decently priced lawnmower and have the tenants do it themselves.
Energy-Saving Appliances
This may be a little more of an expensive option upfront but will pay dividends in the long run. It is a really good way to help save money on the amount of energy being consumed by the tenants. Much of that may fall on them when paying the electric bill, but if you subsidize the bill or don’t charge them for certain utilities, then this is a good option.
Some cheaper ways to do this are available and could even include something as simple as eco-friendly lightbulbs. While it may not be an energy-saving device, fixing the leaky faucet can also help cut costs.
Say “No”
You want to be the best landlord you can. It means fixing things you might not want to, making allowances for tenant needs, or not charging a late fee on a month of rent.
There is a time, however, that you need to say no. Not everything needs to be updated. The living room walls are fine the color they are. It is okay, and needed, to put your foot down on some requests. You can’t please every tenant you have, and it is important to cater to needs rather than whimsical desires.
Conclusion
It is important to look into a variety of methods to save money. By doing so you are making your property more profitable, but you are also typically making life better for your tenants in the process. If they enjoy living in your rental property, then the biggest way your monthly cash flow will be affected is by their continued rent payments.
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