When Your Costs Are Ruining Everything
It’s a fact that most property managers get into a role as a property manager via circumstance. Perhaps it was inheritance, buying a property with an income suite(s), or as a high performing income asset they invested in with other investors.
Whatever your route was into the property management business, you’re probably now aware that the biggest threat is high and rising costs. You might even be considering hiring a property management company solely due to the issue of out of control costs.
If your expectations of high yields and consistent cashflow have evaporated, thoughts of big capital appreciation have dissolved, and you’re worried about financial threats such as rising interest rates, inflation, rent controls, taxes, and more, then you’d better act to prevent them from ruining your investment.
We’d like to see you keep your investment viable which is why we’ve compiled this helper on keeping property management costs under control.
What are Property Managers and Investors Doing to Control Costs?
Most are simplifying their work and how they manage units and tenants. If you currently manage a property management company, you’ll get a new perspective on how to reorient your business to get control of costs at a higher level.
Smart property management is all about overall strategy because once costs start to roll, it’s almost impossible to stop the situation from playing out fully to a disappointing end.
Maintenance and tenant management continue to rank as the most problematic elements for property managers and landlords. In old style property management, a reactive approach was taken. This is the usual approach of most landlords because they’re stuck with an out of date management system. It’s the number one cause of daily stress for landlords.
10 Key Ways to Control Your Costs Forever
- choose your property investments wisely – old, dilapidated buildings or units spell trouble if you don’t have a reliable landlord or contractor to handle constant repairs and do proper maintenance schedules.
- buy higher quality water heaters – a bad thermocouple or thermostat are the usual culprits when water heaters break down. Take a good look at gas fired, tankless water heaters . These save energy, make tenants happier (and lucky) and if there are breakdowns, they’re easier to fix.
- buy high quality A/C units – they breakdown much less, which means fewer costly repairs and time spent. Shop for reliable equipment.
- hire a property manager if you’re a multifamily housing investor – the cost of a property management company is prohibitive however, the management of high volume properties and tenants will stress you out. Find out more about good property managers.
- screen your tenants carefully – the best tenants are low cost tenants. You likely won’t have difficult finding or keeping tenants in 2018/2019 however they can damage your property and cost you a lot of time. See how to screen tenants effectively.
- keep on top of your expenses, repairs, contractors, and maintenance – signficant losses occur between the lines so to speak (unneeded repairs, poor repair service, and overcharging)
- automate your maintenance using property management software – ensure you don’t have to manage things with spreadsheets and paper tickler files – that’s too old school and your time is too valuable and costly
- simplify your accounting – definitely use a good property management software with a functionality to record your expenses and keep saving top of mind
- ensure your landlord educates tenants on equipment operation so they don’t damage anything or create conditions in the unit that lead to water damage, mold, insects, etc. Discuss the lease agreement and remind them of how to care for the lawn, driveway, and wood flooring and how illegal pets can damage flooring and carpeting. A little communication will help tenants be more respectful of the home.
- use property management software’s communication power to keep tenants connected, able to pay easily, and ask you questions. Ultimately, this leads to lower tenant turnover, calm and focused tenants, and a progressive reduction in issues you have to deal with.