Being a landlord comes with a lot of responsibility. Not only are you responsible for the well-being of your tenants, but you also have to ensure that your rental property is well-maintained and profitable. With all the costs associated with being a landlord, it’s crucial to find ways to save money where possible. You want to ensure that you’re not spending unnecessarily on things like repairs and renovations and that you’re getting the most out of your rental income.
Here are some ways you can do just that.
1. Use online accounting software.
One of the best ways to save money as a landlord is to keep good records of all your expenses and income. This will not only help you stay organized, but it will also help you keep track of your spending so you can budget accordingly. An easy way to do this is to use online accounting software like QuickBooks or Freshbooks. Not only will this help you keep better records, but it will also save you time and money on bookkeeping fees.
You should also keep track of any repairs or renovations you make to your rental property. This way, you can deduct the expenses from your taxes and save money come tax time. Many landlords forget to do this and end up paying more in taxes than they need to. If you’re unsure how to track your expenses, talk to an accountant or tax professional.
2. Get an energy performance certificate (EPC).
This document gives your rental property an energy efficiency rating. This rating is based on things like the type of insulation in your property, the type of heating and cooling systems you have, and the energy efficiency of your appliances. It ensures that your property is up to scratch in terms of energy efficiency and can help you save money on your energy bills.
Ordering an EPC can help you save money in two ways. First, it can help you qualify for energy-efficiency grants and subsidies. Second, it can help you make your property more energy-efficient, saving you money on utility bills in the long run. It is also a requirement in some countries to have an EPC before you can list your property for rent.
3. Shop around for insurance.
Another way to save money as a landlord is to shop around for insurance. There are a lot of different insurance companies out there, so it’s crucial to compare rates and coverage before you decide on a policy. Be sure to get quotes from at least three companies before making a decision. You can also save money by bundling your policies if you have more than one rental property.
Some things to look for in a good insurance policy include coverage for loss of rent, damage to the property, and liability. You should also ensure that the policy covers the type of tenants you want to rent to. For example, if you’re renting to students, you’ll need to get a policy that covers accidental damage. This type of coverage is usually not included in standard policies.
4. Hire a property management company.
If you’re finding that managing your rental property is taking up too much of your time, you may consider hiring a property management company. Although there will be an upfront cost, it will likely save you money in the long run by freeing up your time so you can focus on other things. A good property management company can also take care of tasks like maintenance requests, tenant screening, and rent collection which will further free up your time and allow you to focus on more important things.
Look for an experienced property management company with a good reputation. Be sure to read reviews online and ask for recommendations from other landlords. If you’re unsure about whether or not to hire a property management company, you can always start with a smaller company that offers a la carte services. This way, you can test their services and see if they’re a good fit for you before committing to a long-term contract.
5. Join a landlord association.
Finally, another way to save money as a landlord is to join a landlord association. These associations usually offer discounts on things like insurance, legal services, and repairs. They can also provide you with a wealth of knowledge and resources that can help you save money and run your rental property more efficiently.
Joining an association is a great way to network with other landlords and stay up-to-date on the latest industry news. It’s also a great way to get discounts on products and services that you would otherwise have to pay full price for.
As a landlord, it’s crucial to find ways to save money while still providing a safe and comfortable place for your tenants to live. By following these tips, you can save money while still offering a great rental experience for your tenants. With a little bit of effort, you can make owning a rental property a more profitable and enjoyable experience.