Are you tired of writing monthly checks for your investment property expenses? Are you looking for ways to reduce or eliminate those checks altogether? If so, you’re in luck! In this blog post, we will discuss a few tips that can help you reduce or eliminate your monthly investment property expenses. As a property manager, landlord and Realtor who specializes in investment properties, I know the importance of knowing where every dollar is going, as well as ensuring the quality of those expenses. I have a few ideas that may help you save money each month. Keep reading to learn more!
- One of the best ways to reduce or eliminate monthly investment property expenses is to be proactive about maintenance and repairs. If you wait until something breaks to fix it, you’re likely going to end up spending more money than if you had just taken care of the issue beforehand.
- If you are paying the heat bill, is there any way to install a new furnace or boiler in the other unit(s) to shift the cost to the tenant? Can you install electric baseboard heat for one or more units and shift the expense to the tenant? If you are paying for trash removal, can you reduce it?
- Does the building only have one water heater (that you pay for), but each unit has its own gas meter for cooking? Can you easily install a water heater for each unit and shift the expenses to the tenant?
- When is the last time you really analyzed your water bill? Call your municipality and find out how many gallons a typical household should use per month. If your building is using more than that, check for dripping faucets and running toilets. A dripping faucet can cost $50 per year and a running toilet can cost more than $100 per month!
- Older rental properties that have been converted into apartments often have electrical systems that were not converted properly. Turn off the main breaker to the common areas and see if any tenants complain that they lost power. You could be paying to run your tenant’s television!
- If your investment property is in an HOA, make sure you are not overpaying. HOAs typically have a budget for each unit and if yours is higher, you may be able to get a refund or at least have the HOA pay for some of the repairs.
- If you live in a colder climate, like Minnesota, make sure the storm windows and inside windows are closed during the winter to minimize heat loss. Consider adding weather stripping to the doors.
- Making sure your boiler/furnace and water heaters are cleaned and tuned up at least every 2 years will not only save money, but will lengthen their life span. Additionally, this could prevent those mid-February after-hours heat out calls that can be $400/hour to resolve.
- Are you paying too much for services to mow the grass or take care of the snow? If you are paying for lawn care, can you change your landscaping to require less maintenance? Can you find a teenager in the neighbor that would love to do it (for less)? If you have a single family house, have the tenants do the snow/mow and provide all equipment and supplies.
- If you have a property manager, are you getting your money’s worth out of them? If not, it may be time to find a new property manager that is looking at your expenses as closely as you are. Can you take on some of the management for a reduced price?
These are just a few of the many ways you can reduce or eliminate your monthly expense checks for investment properties. By being proactive and thinking creatively, you can save yourself a lot of money in the long run. Roll up your sleeves and look at all your expenses for 60 days. See if you can reduce or eliminated any. It will not only bring you more cash flow, it will make your investment property more appealing to a buyer when you sell it.
What are some other ways that you have found to reduce or eliminate monthly expense checks? Please share your tips in the comments below!