The best way that landlords can make themselves successful is to minimize their expenses. Every landlord wants to reduce rental property costs and save money. By minimizing expenses, you can maximize your return on investment & reduce the impact of inflation on your business. Part of being a successful landlord is preparing for all the unexpected rental property expenses. We present here 7 solutions to minimize your expenses that could help landlords save both time & money.
1 - Search for a good Tenant:
It takes time to find a good tenant. Because having a bad tenant who doesn't pay rent on time, always complains, makes excuses of financial issues or demands unnecessary maintenance will take away your time, money, energy & your patience all together. But with some planning in your mind, you can save yourself from those problematic tenants. You can achieve this by asking them to submit a rental application beforehand. Consider online tenant screening, background & credit checks. Taking feedback or verification from previous landlord will help too. A good tenant will actually help you minimize expenses in a manageable way.2 - Move-in & move-out conditions checklist:
When you perform an inspection of your property before a tenant moves in, you can save yourself from future expenses resulting from the damages caused by the tenants when they move out. Have a check list of all the items in your property with their current condition & witness it with the new coming tenant. By properly documenting every detail, your tenant should get an idea that if something goes wrong during their stay then it can deduct their security deposit. In this way, they will take extra care of your property & on the other hand you will be saving your maintenance costs.3 - Keep your tenants happy & satisfied:
To keep your tenants happy you need to prove yourself a good landlord. A trusted, responsive & responsible landlord can keep the tenants for longer duration. In this way you can save expenses of periodic vacancies, new paint, renovations, repairs & the process of finding another good tenant. When tenants know you care as much about them as your property, they are more interested to take care of it as well. A happy & satisfied tenant is a long-term tenant.4 - Up-to-date Maintenance & DIY repairs:
To save yourself from unexpected or emergency repairs, consider performing elective & scheduled maintenance inspection. It will not only keep your money from draining but also will help you live a peaceful life. Routine inspection of your property will help you determine the normal wear & tear of things, when to replace any appliance or when to make repairs before an emergency occur. If you leave your property without inspection, then you may risk yourself with some unexpected & larger expenses in the future. You can try doing some of the maintenance tasks yourself as an easy way to keep your budget in check. With routine inspections, most repairs will be minor and you may be able to do them easily. On the other hand, it’s important to know when to call an expert. Try using a software like My e-Property Manager to get an automated maintenance work flow. Allow your tenants to send maintenance requests online & get estimates from your preferred contractors. In this way you can save both your time & money.5 - Tax benefits or deductions:
Having a rental property means that you can save many of your rental property expenses in your tax bill. Therefore, your target for saving money is maximizing the deductions you qualify for. Collect all the information about the expenses you can claim. Make sure you don’t pay more tax than you need to. When you complete your annual tax return you can report all your rental costs. This is another way to save your hard earned money.6 - Homeowner's insurance re-evaluate:
If your property has dropped in value in all these years, you could be paying too much for your insurance. On the other hand, you might have chosen very low coverage that could leave you out of pocket in the event of a claim. You should take care of what you are paying for your landlord insurance. Try to get different quotes online and do proper comparison to ensure that you are getting the best deal. Having a good reasonable insurance will help you manage your expenses specially in cases of emergencies.7 - Use a property management software:
If you have a small to medium portfolio you can manage your rentals all by yourself. You don't necessarily need to spend 10-12% of your rental income to pay for a property management company. Thankfully, there are some rental property management software that can save your time & keep you organized through automation of processes. This will help you to keep more profits to yourself. My e-Property Manager is the solution of your property management. It can save your money & help you keep minimize your expenses. Try 6-months free trial that includes:- Only email needed to register (No credit card required)
- Tenant portal to submit/track maintenance requests and view bill
- Maintenance automation
- Create / Maintain unlimited leases
- View and share real-time invoices
- Collaboration with association members
- Tenant and guest parking enforcement
- Unlimited landlord feedback
Sign Up for free / Try Demo Accounts
Read more: How to manage your rental properties all by yourself without a property manager!