Money Saving Tips for Landlords in 2024
Whether you’re a new landlord or you’ve been in the game for decades, no one is going to deny that making a profit requires a dynamic approach. The tricks of the trade a decade ago (or even a couple of years ago) won’t hit the spot in 2024.
If you want to not only turn a decent profit but also attract the best tenants, then the following should all be on your radar.
Ways to Save Money that Might Not (on the surface) Appear to be about Finances
- The basics: 3 essential money-saving tips for landlords in 2024
- 4 tips surprising ways to turn up the heat on rental profits
The basics: 3 essential money-saving tips for landlords in 2024
- Consider the value of your time: While it might seem attractive to manage your own rental property (or portfolio of properties), is this a valuable direction of your time? Work out the hours that you spend doing so and then determine if this gives value for money. In many cases, using a third-party property manager can be far more advantageous than going the DIY route.
- Don’t underprice your property: While this might sound obvious, it’s vital to be charging your tenants full market value. Sure, you might’ve done extensive research when you first put your property on the market, but are you carrying out regular rent evaluations? Has an ongoing infrastructure improvement come to fruition? Has a local area become “gentrified?” Has the popularity of the property’s location increased? Evaluating current market rates and increasing them as appropriate isn’t so much about saving you money but ensuring that you’re returning every potential cent from your investment.
- Implement a proactive tenant screening process: Poor tenants cost you money. The screening process is one of your most powerful tools in selecting those who are reliable, pay their rent, are respectful of the property, and are the right people for that crucial landlord-tenant relationship. Don’t skimp on this stage—it’s worth waiting a few days or weeks longer to find a tenant with a good credit report, background checks, and rental history.
4 surprising ways to turn up the heat on rental profits
While the above elements should be considered the cornerstones upon which you build your rental portfolio, don’t be afraid to think outside the box to find other ways to save money.
- Embrace sustainability and fit better than average appliances: Yes, it can be tempting to save a bit of cash upfront by installing base-level appliances and fixtures. However, while you don’t want to go over the top, upgrading to elements that are energy-efficient and eco-friendly not only adds to the property’s appeal (and a higher rental yield) but will likely cost you less over the long term to maintain.
- Don’t wait for problems to arise: It can be very tempting to let your tenants inform you if an issue occurs within the property. However, carrying out regular checks and maintenance will prevent issues from snowballing. This proactive approach is usually far less expensive over time. Not only will the bills be lower, but it dramatically reduces the chance of, for example, having to pay over the odds for an emergency tradesperson to come out on a Sunday evening to fix a broken boiler.
- Maximize your tax deductions: There are many tax write-offs available for landlords. From travel expenses to depreciation, insurances to legal services, it’ll probably surprise you the extent that can be claimed. If you’re not confident that you’re realizing your full tax write-off potential, then taking professional advice is definitely worth the expense.
- Keep on top of local regulations: Did you know that most new rules and regulations come into play at the beginning of the new year? It’s up to you as a landlord to stay abreast of these—falling foul has cost many an experienced landlord plenty, so don’t fall into the trap of being ignorant of a new law.
Improve Your Profit Margins by Financing Your Next Rental Property with BRRRR Loans
Let’s face it, you are (or plan to become) a real estate investor with one core reason in mind—to make money. Therefore, unless you’re incredibly fortunate enough to have a big enough net worth to work with, you’re going to need finance. At BRRRR Loans, we make this easy. Not only do we offer some of the most attractive interest rates on the market today, but we make the process as fast and simple as possible.
Whether you’re expanding your rental portfolio, lining up your next BRRRR, or going for a fix & flip, we’ve got what you need.
Find out more at https://www.brrrr.com and call our team today to discuss your requirements.
Buy, Rehab, Rent, Refinance, & Repeat. A nationwide direct lender to real estate investors. If you have a project that needs to be funded, you’ve come to the right place.