Buying a rental property can be an excellent investment move. But if you play your cards right, you can save more money as a landlord and possibly expand your business.
Being a landlord isn’t easy, and it certainly doesn’t come cheap. To become a landlord, you need to invest a big chunk of your finances into your rental property. And until it is fully paid off, it remains a liability for you.
Fortunately, there are a lot of ways you can pay off your rental property early, the best one being saving money through smart landlord strategies. Saving cash will not only help your business stay afloat; it will also help you acquire more investments in the future.
Here are the best money-saving tips that all landlords should know:
1. Buy a good property
Whether you are investing in NNN properties or regular ones, you should avoid buying a fixer-upper. Rental properties that have been poorly maintained may come cheap, but there is a great chance that it will eat up your money in repairs and renovations before your eyes. Even if you successfully make the property look presentable, you may still be liable for a lot of maintenance in the future.
Instead, start with the right property at a reasonable price. A rental property that is in good shape will not only attract renters more, but it will also help save you money in maintenance.
2. Keep rent reasonable
A high turnover rate in rental properties usually means that the landlord is doing something wrong. Typically, it’s because of unreasonable rent.
Rent that is too high can make people move out more often than they should, which means that you have to fix up the apartment again for a new tenant. Not only that, but there is also a chance that the property will be vacant for at least a month or so while you are processing potential tenants.
For these reasons, keeping your rent reasonable is an excellent way to save money. With sensible rent, tenants will stay longer, and you will not have to spend money to bring in a new tenant.
3. Open a contractor account
Owning and maintaining a rental property involves a lot of expenses in repairs, upgrades, and maintenance, and if you don’t find a way to keep the costs low, these expenses are going to stack up against you.
As a result, many landlords open a contractor account in a store that offers great discounts. Instead of buying tools, materials, and appliances from different stores, buy from a single store with your contractor account and add any possible discount you can find (coupon, rebate, sales match, etc.).
4. Be hands-on
As much as possible, don’t hire a property manager to do your work for you. Not only will you have to pay for wages, but by not being hands-on with your rental, you may not know what’s going on with your property. Do most of the heavy lifting yourself to keep as much of the profits as possible. If the work gets too much at certain times of the year, hire a freelancer to help you.
Being a landlord can be a great job, but it also comes with its own difficulties. One of these is saving money. But no matter how impossible it may seem, with these tips to guide you, you can save successfully as a landlord.