There are a variety of benefits to take advantage of as a landlord such as tax deduction opportunities and the ability to create a long term profit that can be used to fund your current lifestyle, your planned retirement years, or both. But there are some expenses that you'll have to face in order to satisfy tenants and maintain your profits. Luckily, there are a few things you can do to save some money as a landlord so you can optimize your profits – all without sacrificing tenant satisfaction or convenience for all parties involved. Consider implementing one or more of these effective methods:
Save on Cleaning and Prep
One of the best ways to save some money as a landlord is to make cleaning and prep easy and quick between occupancies. When a tenant moves out you'll likely be left with garbage and light damage to take care of which can be both time consuming and costly, especially if you choose to utilize professionals in order to get the job done. To cut down on cleanup time and service costs, rent a dumpster for the week that your tenants plan to move out so they can throw everything, including old furniture, away on the spot as they pack their belongings and get prepped to leave.
This will reduce the chance that large items get left behind for you to clean up and minimize the time it takes to get things ready for new tenants to move in. To make the cleaning and prep process even quicker, you can also provide a couple gallons of paint, some nails, and some sandpaper to your tenants so they can make small repairs so they have an opportunity to recoup more of their deposit. For more information on dumpster rental, contact a company Road Runner Waste Service Inc.
Save on Service Expenses
Another effective way to save some money as a landlord so you can optimize profits is to structure your rental fees in a way that results in your tenants absorbing some of the maintenance costs and business expenses that you have. For example a percentage of the costs for things like water, yearly home maintenance tasks, and insurance can be passed off to tenants by being added into their non-refundable deposits or monthly rental rates. Sit down and make a list of the costs and expenses that are associated with your home rental. Divide twenty percent of the total into twelve so you know what to add to your tenant's monthly rental charges.
Save on HVAC Repairs
Heaters and air conditioners are typically used all year long to help maintain comfortable temperatures, which is likely to put a lot of wear and tear on your rental home's HVAC system and in turn may result in the need for expensive repairs throughout the year. There are a few easy things you can do to protect your rental home from the outdoor elements so your tenants don't feel the need to use the HVAC system as often. Try these options:
- Plant deciduous trees in the yard – they are full of leaves during summer months and will protect your rental home from the sun's heat, and they'll lose their leaves in the winter so the sun can naturally warm the home up. The trees will even increase the property's value by up to 20 percent.
- Provide Filters – Send or drop off new HVAC filters twice a year so you don't have to hire a service technician to do it.
- Install Ceiling Fans – they use a lot less power and keep temperatures optimally controlled so the HVAC system isn't necessary as often.
These tips and tricks will keep your rental home's HVAC system in proper working order and minimize the wear and tear that's put on it no matter what the temperature is like outside.
These tips and tricks should be easy to incorporate, and your tenants are sure to appreciate the extra steps you take to make their living experience comfortable. All the while you'll optimize your profits and make being a landlord well worth the effort overall.