Running a successful rental business requires landlords to keep a keen eye on the bottom line. From mortgage payments to unexpected repairs, a number of expenses can seriously cut into rental profits. While there is no foolproof method of eliminating unforeseen costs altogether, there are plenty of powerful techniques available to keep maintenance costs low. Follow these simple tips to help your property stay profitable over the long haul.
Start a Slush Fund
If you’re not already budgeting for repairs and maintenance costs, start saving immediately. We recommend placing a portion of your rental income in savings each month, in order to build a repair fund you can utilize for future expenses. Many landlords mistakenly overlook this key step, only to find themselves struggling to pay mounting repair bills down the road. Take it from the seasoned property managers in Temecula: you will encounter pricey repairs at some point! Start saving today to ease the pain later.
Be Proactive with Your Property
Pressing repairs and problems easily capture the attention of property owners, but many landlords overlook voluntary upgrades and maintenance. This approach can backfire, however, as poor upkeep often snowballs and causes a property to decrease in value. For example, repairing a leaky water heater may not feel incredible important, but that water can cause serious damage over time. In a few short years, your home’s foundation could be destroyed by the slow stream of water. The bill for a new water heater doesn’t come anywhere close to the repair expense of fixing a crumbling foundation.
Work to identify problem areas in your property and schedule upgrades that line up with your budget. Not only do these maintenance tasks protect a rental home’s longevity, but they can also work to attract better tenants. A home in fantastic condition with newer appliances and fixtures often attracts a premium tenant who is willing to pay more each month.
Respond to Repair Requests Immediately
Handling a tenant’s repair requests can feel somewhat annoying, particularly if you receive an endless flow of complaints. Neglecting a serious repair could cause you serious trouble down the road, however. Commit to responding to a repair request within an appropriate time frame. This will allow you to properly assess the damage that has occurred and resolve the issue before it has the opportunity to escalate. Quick response time also works to boost tenant loyalty, which can save you substantial money in the future, as happy tenants are often happy to sign a lease renewal.
Dealing with the expenses of your rental property is simply a fact of life, but don’t toss your investment potential because of poor financial planning. Instead, work to develop a strategy that keeps your home in great shape and allows you to stay profitable. Building a savvy budget, planning for expenses, and handling necessary repairs in a timely fashion will help keep your management approach on the right track. With a bit of luck and hard work, your maintenance bills should come tumbling down.
Struggling to keep your property afloat? Turn to the property management experts and learn how we can help you develop a thoughtful maintenance schedule that will save you money. Call us today to learn more: 951-373-2500