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How To Save Money On Property Management Costs​

Tip #1: Define Property Renovation, Maintenance, And Repair Tasks Ahead Of Time!

In a property management strategy, it's a very wise move to first define what renovations and maintenance tasks are involved in the properties you own. For example, deciding to act on maintenance or renovation AFTER a problem has occurred is not being a pro-active part of gaining higher profits in the landlord / property rental business. The smartest thing any landlord / property management company can do is think ahead. Performing maintenance, making repairs, and performing maintenance on their properties BEFORE something bad happens is key. When problems erupt in a property because of negligence, generally there are "linked" consequences that wind up developing as a result.

Example?

Property A has roof problems. The landlord is aware of the problematic roof, but chooses to put off doing something about it for a few years.

Result?

The minor roof leak, over the course of a few years, causes MAJOR damage to the rafters and caused the roof sheathing to rot. The insulation in the home was also grossly infected with mold.

Solution?

If the landlord would have acted fast, instead of putting off the repairs, he could have saved thousands of dollars in repair costs. It's situations like this, where one seemingly small problem leads to a seriously expensive predicament over just a few years time.

Tip #2: Buy Property Renovation Supplies / Items / Products In Bulk

One way that a landlord or property management company can save on repair items or renovation costs is to always purchase frequently used items in bulk. This strategy works for refrigerators, air conditioning systems, microwaves, garbage bags, washer and dryers, kitchen appliances, dishwashers, stoves, fans, computers, and pretty much anything else. You'll find that there's many manufacturers of products willing to provide bulk discounts over the cost of purchasing these items individually.

Tip #3: Hire Reasonably Affordable Workers For Your Property Management Team

For landlords, hiring an affordable team of workers that provides quality work is crucial. Sure, it may take a bit of "hunting and pecking" to find the right people, conduct applicant "try-outs", and screen through applicants, but that's all a part of the landlord profession. Once you form a qualified team of workers to maintain, renovate, and service your properties, you'll be one step ahead.

Alternatively, you could also choose to hire a property management company to take control of these duties. You can expect to pay between 5%-10% of your total rent collection for the properties being managed.

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Samuel Kenwick

 

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