6 Ways Landlords Can Cut Costsfjpinvestment
Being a landlord is seen as a business by many, and rightly so. Even though making money is important for any business, it’s easy to lose sight of ways to cut costs in favour of making more money. Because saving money is so often overlooked, somewhat oddly, we thought it would be helpful to provide a few ideas of how you may potentially save a small fortune every year that aren’t going to require too much on your part. Indeed, with rising costs cropping up in all sorts of areas, from energy to food to building materials, who doesn’t want to take some simple steps to try and save money where they can?
Constantly review your expenditure
One of the most important things to do is to go over your monthly bills and other outgoings to see where you can make savings. We understand that this is a time-consuming process, but the potential savings make it worthwhile. Thanks to the growing number of comparison sites online, it’s easy to compare and switch important costs like mortgages, insurance, and energy providers. If you aren’t doing it and have let it slide, get started right away because you might be surprised at how much it all adds up. One quick tip to keep in mind, however, is to be sure to compare prices on a variety of comparison sites as not all of them are as impartial as you would think.
Dedicate at least one whole day every six to twelve months to revaluate your spending habits. Instead of putting off financial planning till you have a “spare hour” (which almost never seems to happen!), get it done now. And to reiterate an important point, if you’re going to use one of those comparison sites, keep in mind that some of them are now controlled by large firms that will churn out information that is favourable to their interests. Use multiple sites (i.e., compare the comparison sites) and surf around the net to see what deals others are talking about.
Negotiate for a better deal
Whether you are a self-managed landlord or even use a property management company to manage your property on your behalf, you will likely work with small businesses directly in your everyday dealings. If this is the case, you will be in a position to haggle about pricing, particularly if your partnership is ongoing and you have a longstanding relationship with them.
It’s no secret that businesses will do all they can to keep their customers, especially when the economic winds are blowing harshly, which is why even huge companies have retention teams to handle this task; they just don’t want to lose precious customers. Let’s face it, holding onto an existing client is usually far more cost-effective than acquiring a new one.
Combine jobs to cut costs
Sometimes it’s possible to combine jobs carried out by tradespeople so they only have to make one visit. Putting off a task will typically result in a higher final price. If there are several things in your home that need fixing at the same time, it makes sense to schedule them all at once so you can save money. And don’t forget to practise your bargaining skills while you are at it!
An example where you might save money is on yearly testing. Many of the same experts that inspect gas appliances may also conduct PAT (portable appliance) inspections. While periodic PAT testing is not mandated by law in the same way that gas testing is, it is nevertheless a good idea to stay on top of it.
Find furniture that won’t cost you anything
Furnished rentals tend to have a far higher demand from tenants, but do they have to cost more money to kit out? Not necessarily. Sometimes you may get your hands on high-quality furnishings at no cost at all. You read that right. Free!
The savvy buy-to-let investor can take advantage of property clearance charges by local councils and, indeed, property clearance service providers. This is where you come in. Some folks may offer their goods for free, with the caveat that you must arrange a collection for them. Check out sites like freecycle.org, gumtree.com, and craigslist.co.uk, among other local and online resources, to see if you can find any expensive furniture at a discount. You will be amazed at what free quality stuff you can pick up!
Stick to the rules
This is probably the most significant money-saving advice of all for individuals who find themselves renting out property for the first time, either as accidental landlords or as first-time buy-to-let landlords. Although abiding by the laws today won’t save you any money to get started with your investment business, doing so might end up saving you a lot of trouble (and maybe even your freedom) down the line.
If you want to make sure you’re not breaking any rules while renting out your property in England or Wales, you should read the government’s guidelines. If you don’t do this, it might end up costing you a lot of money.
Hire professional management help
This might sound counterintuitive but spending out could save you money. How? Well, even while doing things on your own has the potential to save you money—and this is true if you get it right—you may really end up saving more money by using a professional letting agent who knows the business inside out.
The value of one’s time is difficult to put into numbers. Being a landlord is a time-consuming business, and it frequently makes financial sense to outsource many of the related jobs and activities to a reliable letting agency.