Renting out a property is a great way to earn money, but just like regular homeowners, landlords must be proactive to avoid inflated monthly costs. This means regular maintenance, working with tenants and investing in a house or apartment to make sure everything is running smoothly. These tips can help landlords save a little bit of money and also improve their standing with future renters as well.
As the Bay Management Group found, one of the most important ways landlords can lower monthly costs is to be proactive about maintenance and addressing problems as soon as possible. Otherwise, issues can snowball into larger, more difficult ones.
"Work with tenants to identify any trouble right away."
Landlords should work with tenants to identify any trouble right away. A leaky pipe, a rattling furnace or any other common problem can lead to inflated utility costs and more expensive repairs later on. The same is true of pest infestations, concerns with neighbors and any other daily problem that might arise.
This is critical because young people in particular use social media and other tools to share information on their experience with everything from renting a home to visiting the doctor. As such, landlords who are seen as unresponsive might lose out on business.
Look for ways to modernize
Landlords looking to save some money can go beyond addressing any issues quickly and look to make improvements independent of any problems. Smart appliances, fresh paint and other additions make tenants feel well-cared for and also minimizes the risk of any mishaps. An electric tankless water heater, for example, gives renters endless hot water while simultaneously lowering monthly utility bills. Even if the landlord isn't responsible for these expenses, there is still the benefit of a more reliable system that requires less maintenance.
Likewise, this saves space in the basement for storage, which is useful for storing supplies or could even create an opportunity to install a washer and dryer set. Overall this benefits renters in a big way. And in crowded neighborhoods especially, standing out as the most responsive landlord can go a long way. And installing an electric tankless water heater or other efficient appliance is an easy way to make a powerful gesture.
Take advantage of tax write-offs
To really make an impact on monthly or annual expenses, landlords should be sure to take advantage of the many tax credits and write offs available. For example, home repairs for tenants are often tax exempt, as are larger maintenance costs. You can also write off certain travel expenses or even office supplies like printers, paper and computer software.
Aside from physical items, interest on mortgage payments, home improvement loans and property depreciation all qualify as deductibles. This can add up to considerable savings, and landlords should work closely with a tax expert to understand all available savings and write offs.
Partner with the right people
Some landlords may take care of their own home repair, but for those that chose to work with an outside contractor, plumber or any other specialist, Portico reported it's best to do some research. The same sort of websites that can compare and contrast landlords can do so for a neighborhood handyman. This is a useful way to ensure high-quality service and also a fair cost.
Over time, working with the same person can build an even stronger and more advantageous relationship. The right specialists will give unparalleled support when it comes to staying proactive about home repair and avoiding unforeseen costs. This will also benefit tenants because they will feel more comfortable reaching out to a familiar and trustworthy person.