Property can be a great investment and return vehicle, but managing and maintaining the property can also eat up a lot of the profit margin. This does not have to be the case, however, if you know where to look and what to change.
1) Use your utilities wisely. Of course, as a landlord, you are required to provide your tenants with functioning utilities that are consistent and reliable. Within that obligation, however, you can still implement some cost-saving measures such as switching out incandescent lights with LEDs that use less energy and last longer. Consider putting outdoor lights on timers so that they only come on when needed or during dark hours. Look into installing insulation to prevent heat and cold from escaping or getting in, depending on the season. Also, keep an eye on your bills and make sure you are actually using all that you are being charged for.
2) Outsource when possible. Outsourcing is a fancy way of saying you’re hiring someone else to handle the problem. While this measure involves spending money, the savings in the long run may very well justify the move. For example, outsourcing tenant calls or service complaints, or billing to a property management company can free up your time for other duties or problems that need attention.
3) Maximize your taxes. A tax specialist may be a very wise investment with a large return in tax savings. Even just having a review of your property tax situation can mean a reduction in your overall tax burden.
4) Give your tenants incentive to stay. Changes in tenants are a giant hassle not only in costs associated with preparing the apartment for the next tenant, but in screening and finding new tenants. Then, there is the lost income if the apartment remains unrented for more than a month. If possible, have tenants sign onto extended leases or at least give them incentives to stay longer as the less turnover there is, the less cost there will be for you.
5) Scrutinize your bills and try to renegotiate if possible. Always be aware of what services or goods associated with your properties you are paying for. If you feel that a service or commodity has become overpriced, you may have some leverage with the vendor to negotiate a new and better rate. Most vendors will be happy to negotiate rather than lose a customer altogether.
6) Consider long-term cost-saving investments. Going green is great for the environment, but if done right, it can also mean substantial long-term savings for you as well. Solar panels, solar-powered hot water heaters, and solar-powered lights can all help to reduce electricity costs. You may even be able to get tax rebates for using solar power.
One of the easiest and least stressful methods of cost saving is to have a qualified, experienced, and knowledgeable attorney assisting you in the management of your property. Attorney Brian Chase is uniquely suited to provide these services to landlords and property managers all over Florida. Contact us today to get started.