Are you a private landlord looking for ways to save money? Whether you’re just getting started or have been renting out property for years, there are always new tips and tricks to learn when it comes to saving money.
Thankfully, we’ve got over twenty five years experience supporting landlords, so we’ve got some must-know answers.
In this blog post, we’ll share our expert money saving tips for landlords that can help you start saving money immediately. Whether you’re looking to save on utility bills or energy costs, we’ve got you covered.
1. Screen tenants carefully to prevent negative situations down the road
Screening tenants carefully is often touted as a money saving tip for landlords. And there’s a good reason for that – it can help you avoid costly repairs and damage to your property.
But screening tenants doesn’t just save you money – it can also give you peace of mind. Knowing that your tenant is responsible and trustworthy can help put your mind at ease, and make the renting process much smoother.
By taking the time to review their rental history, employment history, and credit report, you can avoid renting to someone who may be a serious financial risk by skipping rent payments or damaging your property.
Additionally, it’s important to require a security deposit from all tenants. This will give you some financial protection in case there is damage to your property and help to offset the cost of any damages that do occur. You might also want to consider purchasing a landlord rent guarantee insurance policy. This is especially crucial if you’re dealing with new tenants. This coverage is quite inexpensive and will protect your income if a renter falls behind on their payments.
2. Keep up with repairs and maintenance
As a landlord, one of your primary goals is to keep costs low so you can maximise your profits. One money-saving tip is to stay on top of repairs and maintenance for your rental property. By fixing small problems as they arise, you can prevent them from turning into bigger, more expensive problems down the road. For example, it’s much cheaper to repair a loose doorknob than it is to replace an entire door. Similarly, addressing a small water leak now can save you money on costly water damage repairs later.
Keeping up with building repairs and maintenance can also help to extend the lifespan of a rental property. In other words, by investing in regular upkeep, landlords can ultimately save money in the long run. Of course, there will always be unanticipated repairs that pop up from time to time. However, by staying on top of routine maintenance, landlords can minimise the chances of major – and expensive – problems occurring.
For any private landlord it’s important to keep up with repairs and maintenance in order to avoid costly issues down the road. Not only will this save you money in the long run, but it will also make your property more attractive to tenants.
3. Educate your tenants on how to be good landlords and neighbours
One money-saving tip for landlords is to educate their tenants on how to be good neighbours. Good neighbours are considerate of others and respectful of their privacy. They also understand the importance of keeping the common areas clean and tidy.
By teaching your tenants about the importance of being considerate of their neighbours, you can help to avoid potential conflicts and expensive damage repairs. Additionally, good neighbours are more likely to look out for each other, which can help to deter crime in your property.
Lastly, tenants who are good neighbours are more likely to renew their leases, which can save you money in the long run. Thus, by taking the time to educate your tenants on how to be good neighbours, you can save yourself money and headaches down the road.
4. Negotiate rates with service providers, like cable and internet providers
One easy way to protect your bank account and maximise your rental income is by negotiating rates with service providers.
Internet service providers for example know that landlords have many properties to manage and they are often willing to offer discounts for bundled services. By taking the time to negotiate a better rate, landlords can save money on their monthly bills and pass those savings on to their tenants. In addition, bundling services can also make it easier to manage multiple properties since all of the bills will be in one place.
Many service providers are willing to work with landlords to lower their rates, especially if you’re able to commit to a longer-term contract. While it may take some time and effort to secure a lower rate, the money you’ll save can add up quickly, making it well worth the effort. So next time you’re renewing a contract with a service provider, be sure to ask for a discount. You may be surprised at how much you can save simply by negotiating a lower rate.
5. Consider investing in property management software to help automate tasks
If you’re a landlord, then you know that there are always a million things to keep track of. From rent payments and maintenance requests to building insurance and prospective tenant screening, it’s easy to feel like you’re constantly swimming in paperwork.
Property management software can help to take some of the weight off your shoulders by automating many of the tasks that come with being a landlord. For example, many property management software programs offer a variety of features that can save money, such as online payment processing or online application processing.
Plus, property management software can help you to find money-saving discounts on supplies and services. By investing in property management software, you can streamline your workflow and free up your time so that you can focus on what’s most important: providing your tenants with a safe and comfortable home.
6. Install energy-efficient appliances and light fixtures
Another great way to save money is by installing energy efficient appliances and light fixtures in your rental properties. By doing this, you will not only save money on your utility bills each month, but you will also be doing your part to help the environment by providing an eco-friendly flat.
Energy efficient appliances and light fixtures use less electricity than their traditional counterparts, which means that they will put less strain on the power grid. In addition, energy efficient appliances and light fixtures often come with government incentives and legal tax exemptions, which can further increase your savings.
Further, energy efficient appliances and light fixtures typically have a longer lifespan than traditional appliances and light fixtures, which means you’ll save money in the long run by not having to replace them as often.
7. Insulate your walls and ceilings
Landlords always want to ensure that their investment property is money-saving. One great money-saving tip is to insulate walls and ceilings, as this will help maintain a comfortable temperature in the rental unit for tenants.
In the winter, insulation will prevent heat from escaping, and in the summer, it will keep heat from entering. This will help to reduce energy costs, as any air conditioning systems won’t have to work as hard to maintain a comfortable temperature.
Insulation can also help to reduce noise levels, providing tenants with a more peaceful living environment, making it cost-saving, as well as beneficial, for everyone.
8. Work with a property management company
As a landlord, you have a lot of responsibilities. You need to find tenants, collect rent, and handle maintenance and repairs. If you’re not careful, these tasks can quickly start to eat into your profits. One way to save money as a landlord is to work with a property management company.
Property management services can be a money-saving tip for landlords for a few reasons. For starters, property management companies usually have staff on hand that can take care of routine maintenance and repairs – meaning that landlords won’t have to pay out of pocket for these services. In addition, property management companies often have access to bulk discounts on things like insurance and supplies – which can save landlords even more money.
Finally, property management companies typically screen tenants carefully – helping to ensure that landlords end up with good tenants who are less likely to cause damage or fall behind on rent.
Not only does this free up your time and enable you to focus on more important things, it can also save you money by helping you avoid expensive mistakes.
Ready to save money?
So there you have it – our top tips for reducing your landlord costs. We hope you’ve found this blog useful and that it has given you some ideas of how to save money in your property business. At Scanlans we’re always striving to help landlords get the most cost-effective property management possible, so if you need any advice or support just get in touch.