​5 Simple Ways to Trim Costs on Your Rental Property

With real estate investment, you gotta spend money to make money. Everyone knows that. However, there’s still something to be said for frugality, and doing what you can to save money (without skimping on important stuff!) is only going to benefit you. If you’re ready to improve your bottom line, check out these 5 easy ways you can cut some of the costs of owning rental property.

1. Hire a property management company. If you’re not already using a property management company, you’re going to be amazed at all they’ll do for you. Management companies handle virtually every aspect of your rental, short of major decisions that must be made by you, the owner. Tenant placement, marketing of the unit, rent collection, maintenance and more become their job, not yours, saving you tons of time and, yes, money. Even though you’re paying for their services, the savings you’ll see over the life of this partnership will more than make up for it.
2. Have tenants chip in for utilities. Most owners/landlords cover some utilities for tenants because this makes for a much more attractive - and rentable - unit. However, these costs can quickly add up, especially during bitter cold or scorching hot months. Consider requiring your tenants to help out with some of these costs, either by asking them to pay a percentage or by having them pay anything over a set dollar amount. In some markets, you may even be able to get away with having tenants cover all utility costs on their own.
3. Upgrade to energy-efficient appliances and equipment. If you are paying for utilities, why pay more than you have to? Switching to energy-efficient refrigerators, dishwashers, furnaces, AC units and other major appliances/equipment can make a huge difference in your monthly utility bills. True, the upfront cost may be more, but if you have to replace something anyway, you’ll quickly make up the difference in long-term savings.
4. Perform regular maintenance checks at your property. Regular maintenance checks on appliances and the major systems (electric, HVAC, plumbing) can save you big-time. By popping in every so often and checking these things out, you can catch minor issues before they turn into massive, expensive problems.
5. Make sure you’re not over-insured. You have to have insurance on your property, but do you have the right amount of coverage? It’s worth the time to review your policy each year to ensure that you’re not overpaying on premiums for coverage you don’t need. This is also a good time to do some comparison shopping on different policies. Who knows, you may find something a lot less expensive with the same amount of coverage!

Every dollar counts when you own a rental property, because every buck you save goes directly into your pocket. Each of the tips above is something you can do right now to start saving money - so what are you waiting for?