How to cut your costs as a landlord

Money

Contrary to what some of your tenants might believe, cutting costs is an essential element of a landlord’s work.

With tax regulations less than favourable and property prices rising, life as a landlord has come incredibly expensive.

However, there are legit ways to cut your costs – without compromising on your tenant’s living conditions (a big no-go area, as any experienced landlord will testify).

Through today’s post, we will now take a look at some of these ways to show how you can supercharge your property business.

Can you do the day-to-day management yourself?

One of the most significant costs associated with being a landlord is the use of a lettings or property management agent.

Whilst these professionals can save you an incredible amount of time and hassle, their fees can quickly add up – especially if you have a large portfolio of properties. In today’s market, you’ll be looking at paying at least 10% of your rent per month, if not more. Many agents also advertise their percentage charge, but add VAT to the small print – meaning that the costs are even higher for some landlords out there.

Consequently, it’s definitely worth considering whether you could manage your properties yourself.

Of course, this isn’t always possible – especially if you live far away from your portfolio. Let’s not forget that you’ll need to be on call 24/7, which for some landlords, isn’t practical nor desirable.

Are short-term fixes really cost effective?

When a problem occurs in one of your rental properties, your natural inclination might be to call out a tradesman to fix it as soon as possible.

After all, the last thing you want is for your tenant to be living in an unsafe or uncomfortable property.

However, over time, quick fixes can sometimes cost you a lot more. Papering over the cracks can result in much more expensive problems – and it’s here where you need to assess the long-term impact of any fixes that you do decide to make. Ask yourself if the issue in question needs a longer-term solution before making a rushed decision.

Do you need to insure every element of your property?

When it comes to property insurance, it can be very tempting to insure every element of your property – from the building itself to the contents inside.

However, unless you’re offering your property furnished, you’ll generally need just a standard landlords insurance policy. It is then up to the tenant to insure their own belongings within the property.

Could you get a better deal on your mortgage?

If you’re a buy-to-let landlord with a portfolio of properties, it’s highly likely that you’re paying a lot of money in mortgage interest.

With rates starting to rise, now could be a good time to review your mortgage deal to see if you could get a better rate elsewhere.

It’s also worth considering whether you could remortgage to release some equity from your property. This could give you a much-needed cash injection to help grow your portfolio.

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How to Save Money on a New Roof

Home/DIY Money Tips

Roof replacement issues are serious whether you are a real estate investor, you own commercial property, or it’s your personal home. This is easily one of the most important repairs to perform and one of the most expensive as well. This can put a serious dent on your bottom line if you’re operating your business from home, and there are often no alternatives. So, what can you do to reduce costs? Here are a few ideas.

Shop Around

The first thing we suggest is that you start shopping around, but don’t go overboard. Look for at least three quotes from reputable contractors. If you want to know what makes a contractor reputable, one of the best ways to do so is to check their track record. Reviews are great, and you can ask for references as well, but one of the best indicators is how well they’re standing with the BBB. If you don’t know what this is, it is a customer advocacy group that allows people to leave formal complaints about a business. Businesses can choose to be registered or not, and the reviews are a bit more credible than those you’d find on Google.

People like advantage-construction.com, for instance, have been registered since 2013 and have amassed an A+ rating during that time. That’s usually a good sign of a team that takes their work seriously. Get a few quotes from services that have a good reputation like this one and ask for details to make sure that there will be no hidden fees.

Handle Some of the Work Yourself

There are many costs that are associated with removing and refitting a roof. One of them is waste removal. If you can manage to handle that part on your own, you may be able to save a few bucks. We’re not saying you should get on the roof and rip out shingles yourself. That would be dangerous and not worth it. Instead, you can arrange for the garbage container rental and fill it yourself. This is something that you can easily do on your own and doesn’t require much effort.

Learn About Different Materials

You also have to make sure that you start learning about different materials before you start searching for a contractor. You want to know which materials are the cheapest, but which ones will give you the greatest returns as well. If you’re using your home as a formal office, you may want it to look great, so you may not want to go for the cheapest option possible. However, if you’re strapped for cash, then asphalt shingles are the cheapest you can find. They won’t last as long but will cost you much less than other options and are cheap to install as well.

Get it Replaced at the Right Time

Roofers are usually at their busiest in the late months of summer and in the fall. So, if you contact them in the spring or winter, you might be able to get better deals. You’ll have more space for negotiation and some will even offer off-season discounts, so take advantage of this.

These are just a few tips that you can use to reduce your roof replacement costs. The most important part is working with a team you can trust and who has your best interests in mind.

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