Lowering expenses and cutting costs can help landlords support their rental business and generate a sustainable income stream. While some money-saving tactics are obvious in the short term, there are also things landlords and rental property owners can do to save money in the long term.
Check out these money-saving landlord tips from our Henderson and Las Vegas property management experts.
1. Maximize Tax Deductions
When tax season rolls around, it is important for landlords to take advantage of all the deductions they are entitled to. Taxes are often one of the most significant expenses for landlords, and identifying the tax write-offs available to them can make a big difference.
Common tax deductions landlords may claim include:
- Mortgage interest
- Depreciation of the property and assets
- Maintenance and repairs
- Travel expenses
- Employee or contractor wages
- Marketing services expenses
- Legal or court fees
- Insurance premiums
- Home office expenses
- Personal property taxes
Working with an accounting or tax professional can help you maximize your tax deductions year over year, allowing more of your hard-earned money to stay in your pocket.
2. Screen Your Tenants Carefully
Tenant screening is one of the most crucial steps in the renting process. It helps landlords identify the best applicants who are most likely to pay rent on time, take care of the rental property, be respectful to neighbors, and not cause any issues.
Taking the time to review potential tenant applications may seem tedious, but it can ultimately save you the money and hassle of the tenant not working out. If a tenant cannot afford rent payments, damages your rental home, or violates the lease agreement, you may have to spend significant funds to initiate an eviction.
Vacancies can also cost landlords a lot of money without any income to offset it. You must still pay for:
- Property taxes
- Mortgage
- Insurance
- Maintenance
- Security
Additionally, advertising your vacancy and reaching your target audience can be expensive. Finding the right tenant with careful screening can help you avoid these scenarios.
RELATED: 7 Ways Vacant Properties Are Costing Your Money
3. Prioritize Regular Maintenance
Performing routine maintenance protects your rental property investment by catching issues early and preventing them from becoming more costly problems. It also shows your tenants that you care about the rental property and their living experience.
Most preventive maintenance is quick and inexpensive to complete, including:
- Leaks or water damage checks
- Pest control to prevent infestations and unsafe conditions
- Ensuring alarms and safety equipment are functioning properly
- HVAC maintenance and tune-ups
- Replacing old window or door weather strips
4. Invest in Energy-Efficient Upgrades
If the appliances or fixtures in your rental property are outdated, it may be time for an upgrade. New energy-efficient options on the market today are designed to conserve water and electricity, saving you and your tenant a lot in utility expenses. Having these upgrades can also help you attract and retain qualified tenants who want to live a more eco-friendly lifestyle.
RELATED: 9 Tips to Make Your Rental Property More Eco-Friendly
5. Review Rental Rates in Your Market
Seeing how you compare to your competition is another vital way to keep your rental income steady. If you are underpricing your rental, you are leaving potential profits on the table. However, overcharging for rent can price you out of the rental market and lead to costly vacancies. Staying within the fair market value for your area’s rentals will keep you competitive and skip unnecessary expenses.
6. Follow Tenant-Landlord Laws
As a landlord, you have legal requirements and obligations to your tenants. If you fail to provide what is expected, you can face expensive legal battles, fines, and other issues that could affect your business. Examples of common tenant-landlord laws are:
- Including certain details in the written lease agreement
- Providing a safe and habitable dwelling for tenants
- Completing necessary repairs within a certain timeframe
Adhering to local, state, and federal laws will help you stay out of trouble and avoid lawsuits that can cost you significant money. Consult an attorney or property manager for assistance if you are unsure of your legal landlord responsibilities.
7. Build a Good Relationship with Your Tenants
Building a positive landlord-tenant relationship will help you retain your best tenants, keep your rental income consistent, and avoid troublesome tenants who cause costly issues. A few simple ways to do this include:
- Communicating with tenants regularly
- Addressing tenant requests or concerns right away
- Respecting your tenant’s privacy
- Showing your appreciation with gifts or perks
RELATED: 10 Landlord Tips to Build Strong Relationships with Tenants
8. Shop Around for Insurance
Landlord insurance can be expensive and quickly eat up your budget every year. Fortunately, it is also a very competitive market, giving you the upper hand if you decide to shop around for a better policy that fits your needs.
First, talk to your current insurance provider to see if you qualify for any discounts. You can also review your policy and see if there are coverages that are no longer necessary or if bundling with other policies can save you money. If you are still dissatisfied with your premium, most insurance companies provide free quotes. Finding a better deal may save you money in the long run.
9. Hire a Professional Property Manager
Landlords often have a lot on their plates that prevents them from giving their full attention to every issue. However, if things start to slip through the cracks, it could cause tenant discontent, property damage, legal concerns, and other costly problems.
A property manager can handle many key responsibilities on behalf of the landlord, including:
- Tenant screening
- Property maintenance
- Legal compliance
- Rent collection
- Communication with tenants
- Advertising vacancies
Having a professional on your side to assist with these critical operational duties eases your workload, gives you peace of mind that everything is getting done, and helps you save money by avoiding potential issues.
Schedule a Consultation with Black & Cherry Real Estate
If you need a trusted partner to manage your rental property in Henderson or Las Vegas, the Black & Cherry property management team is ready to help. We offer comprehensive property management services, cutting-edge technology, and exceptional client support to streamline your business. Contact us today to schedule a consultation!
