As a landlord you want to get the most out of any property you invest in. However there are many costs that can slowly creep up on you if you are not careful, and these costs can eat into the profit that you make. To help you become more aware of these costs, and to give you some tips on new ways you can save, we have devised a list of 10 ways that you as a landlord can reduce costs on your investment property.
Keep up regular inspections:
Keeping up with regular inspections of the property ensures that no problem goes unnoticed. Try to take your agent along with you so you have more chance of spotting anything out of the ordinary.
Keep on top of problems as they arise:
Taking the time to fix a small problem now helps to reduce the chance that it will become a big problem later. A leaking tap may not seem like such a big deal, but if that leak is constant and dampens the flooring, resulting in the need for a new floor, there is a big expense that could have been avoided.
Pay your interest in advance:
If you are able to pay your interest in advance, do it. Paying in advance gives you a discount on your interest rate in the future and can save you a fair amount of money.
Take out insurance:
A little extra money now can save you a lot later. Make sure that you find the right plan to suit your needs and reduce your stress levels about anything that may go wrong inside the property.
Shop around for the best insurance deal:
Don’t forget to re-check the insurance deals available to you every few years. You may be happy with the deal you already have, but there could always be something better value out there that you may be missing out on.
Use laminate instead of carpet:
Although this will cost you in the short term, there is a big payoff in the long term. Carpet is costly to clean and can hide bugs such as fleas and ticks (if your tenants have pets) – which will then need extermination. Do yourself a favour and make cleaning easy for both you and your tenants by using a laminate flooring choice instead.
Install Solar Power:
Not only can solar power save you money, it can make you money! This can be done by selling excess power that is generated from your solar panels.
Check government schemes:
Make sure to check with your local government if they have any schemes or rebates that may be applicable to you. Examples of this are green energy schemes which offers homeowners a good incentive to use green power instead of traditional power sources.
Test all smoke detectors regularly:
If something were to go wrong, and the smoke detectors in your property were not functioning properly, you could have a huge lawsuit on your hands. So don’t forget to make sure these essential safety items are in good working order.
Check the reputation of any tradespeople you deal with:
It is close to inevitable that at some point in your time as a landlord, that you will have to hire a tradie to come in and fix something in the property. Save yourself the stress of dealing with bad tradespeople by making sure you thoroughly check their reputation via others that have used their services, or via social media.
If you have any other tips please feel free to share them in the comments!
If you’re keen to discuss your property needs, sick of bad property management do give us a call!
Martine, Randal & The team at Think Property & Co
18 Little Oxford Street, Collingwood, Australia, 3066
+61 3 8320 6399 / hello@thinkpropertyco.com