Landlords are indeed basking in the glory of a buoyant period when both demand and yields at a high level. Despite being so, it is still vital to make cost savings whenever you can. As landlords, you should be saving money not just by purchasing properties which can easily generate revenue but also by taking a look at the different ways in which you could be reducing your out-of-pocket costs. While there are some of the strategies taken by landlords that go against the grain, there are some others which may work well.
Apart from the common personal saving strategies adopted by the landlords, there are also some other strategies which you can follow as per your rental portfolio, your local market for real estate and where you reside. Here are few strategies to save money if you’re a landlord.
• Reduce turnover by keeping rents low
If you keep the rates of properties slightly lower than the other competitors, you will always remain 100% occupied, have numerous applications whenever there is a vacancy and also save money along the way. Whenever someone moves, it costs the landlords a pretty big amount as they not only have to clean the carpets but they also require emptying the property until someone else moves in. This can even mean a month with no rent. Both in terms of money and time, it can be pretty costly to market a property for rent.
• Smaller real estate properties are easy to repair and upgrade
Smaller rental properties are cost-effective and when they’re within 1000 square feet size, you will be easily acquainted with the costs of the carpet, the size of the furnace and the size of the roof. If you don’t want to pay for huge repairs, it is always better to go for a smaller real estate property. You don’t have to pay for bigger items and bigger repairs and the property taxes and homeowner’s insurance costs will also be lower.
• Avert using any property manager
Property managers usually reduces the stress which is associated with being a landlord as they usually promote and endorse your rental and take good care of vetting potential tenants. They even meet with renters, collect the payments and deal with other issues regarding tenants. It is however sad to note that these services usually come at a very hefty cost. So, if you want to save money, you have to chuck off the services of a property manager. This way you can keep more profits to yourself.
• Be specific about flooring and paint colors
Expert real estate investors use a simple trick to streamline the entire vacancy process. Landlords usually use the same interior style and paint for their rental properties. When you do this, you can buy the same paint color in bulk and this even saves your time during turnovers. You can save up to $250 to $500 every time in painting.
Therefore, if you’re a landlord who is reading this post, make sure you follow the above mentioned points to save money on your rental real estate property.
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