Working as a landlord can be a costly occupation. Not only do you need to have money to start with, you also need to maintain that money to deal with emergency costs. Visiting Austin Tenant Advisors can help you find the right tenants.
Today we’re looking at how to save money as a landlord.
Landlords may sometimes feel like they’re spending more than they’re bringing in due to an abundance of fees and constant repairs. It can be a bumpy road but it is also a widely beneficial vocation and can provide huge profits for those who do it right.
If you’re just starting out or you’ve been in the business for a while, don’t lose hope – there are always ways to save money as a landlord. Here’s a look at a just few ways you can do that.
1) Choose your property location wisely
If you’re at the very beginning of your landlord journey (and you’re feeling a bit overwhelmed by costs!) make sure you don’t rush into buying your first property. Even if it costs slightly more at first, a better property will ensure constant tenants and longer tenancies.
Furthermore, inspect the property yourself and look out for any issues that could be costly in the future. Things like condensation and damp could cost you more than it should if it is not treated right away. If you know the issues within the property, you can inform the tenants and ask them to take preventative measures while living there.
2) Don’t spend too much on furnishings
It pays off to use second-hand furnishings within your rental properties. You can get some quality pieces of furniture for a fraction of the price (Eames style dining chairs and the like) which will help you save money as a landlord. As long as the furnishings are of a good quality (no wobbly table legs or anything that could be a hazard), there are no rules against bargain hunting for your property furnishings.
Spending less on the final touches will also allow you to reduce the rent, which in turn will increase the interest in your property.
3) Keep rent as low as possible
This may sound a little counter-intuitive if you’re trying to save money as a landlord but lower rent draws more tenants in. Keeping rent as low as possible (perhaps even lower than surrounding properties) will ensure your property is fully vacated all year around. Tenants coming and going due to the rent being too expensive can cause more expenses for you too.
Every time a tenant moves out, you will need to clean the property and prepare it for the next tenant. You also need to advertise the property and pay the rent for however long the property does not have tenants. In the long run, lower rents will be a big money saver for you as a landlord.
4) Be sure to do an inventory
An inventory is an invaluable document for all landlords, detailing the condition of the property prior to tenants moving in. Make sure you make an inventory of all of your properties, otherwise tenants could argue the damage was done prior to their tenancy. This provides you with no grounds to stand on if you want the tenants to pay for the damage caused.
This is a great way to save money as a landlord and avoids a lot of headaches and arguments in the future.
To obtain expert advice on this matter call BG Home Solutions for more details.
5) Get landlord home emergency cover
You may have heard about home emergency cover before, but did you know that there is a landlord equivalent? Instead of having to deal with constant calls from your tenants about emergencies within the property, you can put them in direct contact with a third-party who can fix their problem as soon as possible.
We provide Landlord Home Emergency Cover here at Best Price FS for only £109 a year. Covering everything from boiler failure, electric or gas failure, plumbing failure, broken toilets, pest infestations, external damage and lost keys. We will also provide emergency overnight accommodation for your tenants if their property becomes uninhabitable after an emergency.
It was recently stated that the average cost of landlord insurance is £230 a year in the UK, so our Landlord Home Emergency at Best Price FS will save you £121 a year on average! That’s an incredible saving of 52.61% and a great way to save money as a landlord.
To find out more about our Landlord Home Emergency Cover, just click here. Or if you’d like to contact our friendly team, you can get in touch here!