​Cost-Cutting Tips to Save You Money in Your Real Estate Business

Calling all you frugal investors out there! And even you big spenders...you’re included on this as well. Want to start saving money in your real estate business? Of course you do. Because everything you save goes right back into your pocket!

Real estate, by nature, has a low overhead. Yes, there’s the money you spend to buy and maintain property, but beyond that, you shouldn’t be spending an arm and a leg on business-related expenses.

Here are a few ways you can save money on the business side of things:

1.  Don’t go crazy with the technology. Yes, it can be tempting to buy the best, fastest computer available, but do you really need to? How about the latest iPhone? Do you really need it, or will your older model phone do all the same things? Investment or other business software is another area where costs can quickly add up, so do some comparison shopping and make sure that the software you buy has features you actually need and will use.
2. Take advantage of free stuff. There are SO many freebies out there for investors. A quick internet search will pull up tons of information on areas applicable to your real estate business. There’s no need to pay hundreds for educational seminars when there’s a wealth of information covering every topic imaginable online. Instead of dropping tons of cash on marketing strategies that may not even pay off, why not turn to social media? Google Drive is another resource that’s completely free. All you need to do is set up an account and, boom, you have word processing and spreadsheet functions at your fingertips, along with cloud storage and sharing capabilities. These are just a couple of examples of ways you can get the job done for free.
3. Source cheaper labor. Lots of contractors overcharge for their services, but fear not, there are less expensive alternatives out there. For starters, you can handle some jobs yourself. You may not be thrilled about performing some manual labor tasks, and some you may not even be qualified for, but it’s certainly an option to take on some of these jobs yourself. You could also consider checking online ads, such as Craigslist, or advertising the work yourself. When you have people contacting you to compete for the job, you may be able to negotiate a better deal.
4. Maintain your property and use sustainable practices. Regular inspections and maintenance significantly reduce your risk of incurring a costly emergency repair. When you perform these tasks, you catch new problems when they start, before they become major issues. Implementing sustainable practices, such as landscaping with native and drought-resistance plants or using smart lighting and thermostats, can drastically cut water and energy usage, saving you money.
5. Use those tax breaks! It’s sounds like a no-brainer, but it’s not uncommon for some investors, especially those new to it, to miss deductions or other tax breaks. Keep detailed records of all your purchases and expenses, and work with an accountant who specializes in real estate so you can take advantage of deductions, capital gains, and depreciation.