When investing in any business, cutting costs and maximizing profits is always the goal. Managing a property as a landlord is no different.
Consider these four great ways to cut the costs of being a landlord so that more of your money stays in your pocket.
Picking the right tenant can be the difference between a lucrative lease and a money sinkhole. A bad tenant may lead to evictions, vacancies, and property damage, which all wrack up your costs tremendously. Just as tenants shop for the right home, it is your responsibility as a landlord to shop for the right people to reside on your property.
To properly screen, you should be running background checks and credit checks on each applicant. Get to know them before they move in – have a personal interview before any deals are made. Ask for personal references, and actually reach out to them. The time you spend on screening could save you countless dollars you’d waste on a bad applicant who wasn’t well-screened.
Frequent inspections of the property can allow you to catch a small problem before it develops into a large one. For example, catching a leaky pipe early can save you thousands of dollars in water damage.
Other forms of proactive inspections may include testing insulation, changing air filters, and regular yard word, among others.
Getting good insurance, while it may seem expensive, can save you from fixing expensive damage down the road. Without insurance, you are just one fire, flood, storm, or other incident away from financial turmoil. It can also save you from certain liabilities.
Many insurance companies offer new customer discounts, so it is important to shop around and find the best price.
You might be surprised to learn how many items you can deduct from your taxes as a landlord. You can deduct depreciation of assets, utilities, insurance premiums, advertising, and pretty much any cost you sink into running a property. Staying educated on available tax breaks will help you keep costs down and maximize your gains.
If saving money is on your mind, Landlord Thermostats offers an excellent selection of products that are great for cutting costs and maximizing profits. After a simple five-minute installation, Landlord Thermostats can save you as much as 30% on your energy bill.