Rental Management: How to Minimize Maintenance Costs For Your Rental Property
Rental management of a rental or investment property includes finding the right balance of keeping a property in a well-cared-for condition and not overspending. Most property owners that rent out a property do so expecting to make a profit from rental income. When buying a rental property, consider what the maintenance costs will be for that property.
Property maintenance and repair is often one of the biggest costs associated with rental management. Property owners also need to balance other costs outside of maintenance such as property taxes, insurance, and mortgage payments. Minimize maintenance costs with these tips.
Budget for Current Maintenance Expenses
Know what your current monthly and annual maintenance costs are for the property. Preventative maintenance can prevent bigger problems. Stay on top of cleaning gutters, checking smoke alarms, changing furnace filters, and other regular maintenance.
Also, include budgeting for tenant turnover costs such as painting and carpet cleaning. Taking care of regular and preventative maintenance can keep issues from bigger much larger costs down the road.
Budget for Future Maintenance Expenses
It will be inevitable that you will have some emergency costs such as an appliance failing or a plumbing issue, but there are other long-term costs to budget for as well. Understanding the current state of the building and when updates will be required on higher replacement items, such as a new roof, can help to plan for those expenses. Older properties will require more maintenance costs than newer properties. Plan and budget for future maintenance expenses the property will need.
Deal with Problems Right Away
Managing any problems that arise right away will help to contain that cost. Regular inspections of the property will ensure you are aware of any issues. Respond to tenant requests promptly. Dealing with issues quickly prevents problems from growing, such as a leak affecting more than one room, and will keep tenants happy.
Upgrade for Energy Efficiency
Where you can, make upgrades that can lower costs in the long-term such as low-flush toilets, energy-efficient appliances, and lightbulbs, etc. Small cost savings can add up in the long term.
Keep Records
Maintain your records on work that has been done and when. After a few months or a year, you can review your records periodically and look for opportunities for cost savings. If for example, you’ve been paying for a service and you identify it isn’t providing the value you expect to you or your tenants, you can eliminate that service.
Screen Tenants
Look for tenants that will respect and care for the property. Do a thorough background check on tenants and contact a previous landlord as a reference. It may pay in the long-term to select the right tenant than to fill the space as quickly as possible.
A good tenant will keep the property in good condition and alert property owners or a property manager when something isn’t working. Bad tenants can cost you time and money in lost rental income, legal fees, property damage, and more.
Inspect After a Tenant Lease Ends
It’s important to inspect the property after a tenant’s lease ends for any maintenance issues that are present and are not from normal wear and tear of the property. This final inspection with the tenant should uncover any issues the tenant’s security deposit will cover. The terms of agreement should indicate what is and isn’t covered by the security deposit.
Reliable Service Providers
Have a reliable network of maintenance service providers when you are unable or unwilling to do the work yourself such as plumbing and electrical. When you know you can rely on the contractor to perform quality workmanship, this will save you time and money calling around to find someone. A regular service provider will also learn what needs to be done on the property and inform you of any issues or problems.
Hire a Rental Management Agency
Depending on the size of your real estate investment portfolio, you may wish to hire a rental property management firm to look after maintenance of a property for you. Property management companies will provide property management services that can include building and property maintenance. Hiring a property management company will also provide you with someone experienced in that local rental market.
If you are a property owner and would like to receive a proposal, contact our team and we’ll get back to you with a proposal for a licensed property manager to look after your rental or investment property.
