Owning rental properties can be a lot like living paycheque to paycheque; one day you look and wonder where all your money has gone. Being mindful of your finances and taking steps toward decreasing your expenses are just two ways to protect yourself from financial troubles.
These 5 ways to save on expenses in your rental properties are simple and can make a huge difference at month end.
- Reduce turnover.
The best way to decrease your rental expenses is to decrease your tenant turnover. Every time a tenant moves out you have to complete repairs and maintenance in a unit. From simply cleaning, and removing garbage, to appliance replacement, and painting every step you need to complete costs money out of pocket.
- Cut back the cost of utilities.
If utilities are included in your tenants rent, it can get pricey to keep up with the rising costs. Shop around for the most competitive rate for gas, and electricity and even consider locking in a fixed rate. Fixed rates are usually a bit higher than floating, however, can save you a ton of money during both the cold and hot months (for properties with AC) when your tenant’s usage spikes. If you’re finding your bottom line is significantly affected, consider shifting responsibility for utilities onto tenants in the near future.
- Seek out cheaper insurance.
If you’re looking to cut costs another simple way to achieve this is by shopping around for cheaper insurance. Be sure you’re familiar with the coverage you have now and what you need by law so you can compare apples to apples when receiving quotes from other companies.
- Switch to high efficiency appliances and bulbs.
High efficiency appliances and LED light bulbs are another excellent way to cut back on your utility costs. Depending on the amount of properties you have in your portfolio, making this switch can take some time. Both LED bulbs and high efficiency appliances last longer than their traditional competitors. By using significantly less energy your monthly utility costs are reduced and maximum longevity is obtained. If you’re local to Alberta, you may even be eligible for funding to counteract your out of pocket costs.
- Decrease your vacancies.
A low vacancy rate is ideal for any rental property. When your suites or properties sit empty they cost you money out of pocket. Happy tenants are long term tenants, and long term tenants protect your bottom line by decreasing vacancy rates in your properties.
At Ultimate Property Management our goal is to assist you in maximizing your profits to the fullest extent. Ready to increase value and forcing the appreciation of long term buy and hold investments? Register here to start earning more returns!