Many people renting apartments or looking to purchase a home have noticed that the costs of real estate have increased. While it’s easy to think the economic changes only impact renters and buyers, they also influence landlords and anyone else who owns properties.
Price increases in gas, food, and the housing market impact nearly everyone. While renters might feel the strain, landlords also deal with increased costs of maintenance and repairs and even way higher property taxes. These tax hikes happen when properties are appraised for a much higher value.
As these costs increase, it makes it more difficult for landlords to keep costs down for renters. It’s good for everyone if landlords and smaller property managers can find ways not to go over their budget.
So, if you’re a landlord and feeling the strain of increased costs from all sides, these tips will help you save money to avoid undue pressure on your budget.
- Find Good Tenants
While this point might not seem like tenants will save you a lot of money, they can in the long run. Good tenants who pay their rent on time are invaluable. You’ll be able to rely on them and not spend extra time and effort tracking down rent.
While accidents happen and some fixes might be unavoidable, trustworthy tenants are usually less costly. Also, respectful, reliable tenants are more likely to take care of their living space. This means you won’t have to worry as much about making costly repairs.
To help find good tenants, it’s crucial to run a background check and ask for proof of income. You could also consider running a credit check.
- Work With A Property Management Company
You are ultimately in charge of general upkeep for anything you own. While renters might be responsible for keeping things clean and avoiding damage, wear and tear happen with time. Appliances age and the weather may impact the outside of the building. Even in newer buildings, some issues come up frequently.
Landlords have to ensure that the lawn is maintained, that repairs are made, and that fire alarms are working. You also have to ensure that the rent gets paid and that no unexpected issues are popping up.
All of this takes a lot of time. Unfortunately, time is also money. So, depending on how many units you have or how much extra time you have, it can be more cost-effective to work with a property management company, like Los Angeles Property Management Group, that handles maintenance and rent collection. It’s mainly about finding the right balance between your time and your budget.
- Check The Property Regularly
While being completely hands-off might seem like it saves you time, it could bite you in the end. Another way to save money as a landlord is by performing routine checks of the building. While you want to view the outside of the property regularly, you can include periodic checks of the inside units in the lease.
Generally, these should be around every six months, as more often can make tenants feel uncomfortable or overly managed. You don’t have to be invasive in these checks, but you’ll be able to do a quick overview to ensure things are being kept up. You can also check that nothing in the unit is breaking the lease, such as an unexpected pet. You will need to check tenant laws in your area to ensure you’re not stepping out of your boundaries.
- Do Small Maintenance Projects Right Away
Anyone who owns property, whether renting it out or not, knows that the costs can add up. Unfortunately, there always seems to be something. Maybe there’s a leaky faucet or an old air filter you need to replace. While these small things can be frustrating, it’s more cost-effective in the long run to address them while they are still minor concerns.
First of all, fixing minor problems protects you from liability. This is especially true if any problem poses a safety hazard, such as fallen tree branches. Secondly, while something like a plumbing issue might be easy to fix at first, it can compound. You could end up with expensive repairs that are nearly impossible to afford.
- Get Your Taxes In Order
There are many tax benefits to owning property. Depending on how many properties you own and what kind of properties they are, you may be able to deduct a lot of costs. If you’re not a tax expert, a skilled accountant can help you set everything up correctly.
You’ll want to stay current on what you qualify for and keep track of deductions throughout the year. This planned approach will save you a lot of money, and you’ll also avoid a headache when filing your taxes if you stay prepared.
- Try To Keep Good Tenants
Once you’ve found reliable renters who pay on time and take good care of things, you’ll want to keep them. It makes sense to keep particular renters’ leases at the rate they started with if they’ve proven themselves to be worth it. Even if you raise the rent, you’ll want to make it attractive for these tenants to remain.
Consider extended leases for these renters, as you know they are likely to stick around and make your job easier.
Overall, Preparation Is Key
To be an effective landlord and to save money, the best approach is to plan as much as possible. You can schedule routine maintenance visits and routine checks of the property to ensure there are no problems. You can also keep track of your taxes and overall budget by keeping good records, so you’ll never end up with surprise expenses.
With preparation and the above tips, you’ll hopefully be able to save some money.
Mohsin Chauhan is a versatile journalist who covers a wide range of news topics with depth and precision. With an insatiable curiosity and a commitment to delivering unbiased reporting, Mohsin brings readers up-to-date on the most significant events and stories shaping our world.