If your Prince George’s rental property business has taken off, you may start seeing the profits pour in exactly as you’d hoped.
But even then, you’d be wise to approach your finances carefully. By doing so, you can make sure you have extra money to put toward retirement, your child’s college fund, a yearly vacation, or whatever else you’d like to spend money on but can’t quite afford.
But maybe you’ve already been trying to keep costs low, and you’re still having a hard time saving a significant amount of money. If that’s the case, check out these tips to learn a few easy ways to save.
Money-Saving Tips for Landlords
1. Take advantage of tax write-offs.
Nobody likes paying taxes, but at least you can take comfort in the fact that there are several things you can write off as a landlord, including:
- Repairs to the air conditioning, plumbing, and fixtures in your properties
- Certain maintenance costs
- Business-related travel expenses
- Office expenses (software, printers/paper, rent for your office space, etc.)
These are just a few examples – for a more comprehensive list of what you can write off as a Prince George’s County landlord, check out this page.
2. Perform regular maintenance.
Maintenance may seem like a pain because it’s something you have to prioritize constantly, but doing so will greatly reduce the chance that you’ll experience even more costly problems with your property.
Here are a few things you should be doing as part of your regular maintenance:
- Check all of the smoke detectors in your properties.
- Check for leaky pipes.
- Prevent pest problems by exterminating often.
- Change out all air filters as needed.
Depending on your property’s features, you may need to perform other regular maintenance tasks as well. Use your best judgment, and be consistent in your efforts.
3. Get a good deal on your mortgage.
Even if you have a pretty good deal on your mortgage right now, shop around to see if you can find a better one. After all, your mortgage is likely your biggest expense as a landlord, so you’re sure to appreciate any savings.
4. Be a good landlord to your tenants.
Put yourself in your tenants’ shoes for a moment.
If you had to deal with a distant, cranky landlord who never made an effort to handle your requests in a timely manner, would you rent from them again?
Just like you don’t want to deal with a terrible tenant, tenants don’t want to deal with a terrible landlord. So, make your tenants feel welcome in your property from the moment they move in, be proactive about preventing problems with the property, and take care of their requests as quickly as you can. They may end up thanking you by renewing their lease, which will save you time and money by allowing you to avoid advertising the property and screening new tenants.
5. Adhere to all applicable laws.
While this might seem out of place in a list of money-saving tips for landlords, adhering to local and federal laws can save you some serious cash.
Because even the best landlord can end up facing an unexpected lawsuit as a result of accidentally breaking the law, and those lawsuits can be costly. That’s why it’s important for you to study up on all of the laws that apply to you.
You might be surprised to learn that some local laws in Maryland vary by city. For example, if your property is located in a Prince George’s County city like Bowie or Laurel, you must give tenants a 24-hour notice before you enter the property. In other Maryland counties, the landlord has a right of reasonable entry for certain purposes (although it is advised that the tenant and landlord reach an agreement about a day/time the landlord can enter the property).
So, make sure you look up landlord laws for your country, state, and city. You might be surprised to learn what laws apply to you, and knowing them could save you money down the road.
6. Choose your tenants wisely.
As a Prince George’s County landlord, you already know that troublesome tenants can be costly. That’s why it’s critical for you to take your time and pick good ones.
Screen every potential tenant thoroughly and don’t let personal bias cloud your judgment – otherwise, you could end up paying for your mistake for a long time to come!
7. Get a good deal on landlord insurance.
Landlord insurance usually isn’t cheap – in fact, it costs more than regular homeowner’s insurance. However, it’s worth it to know that you won’t be dealt a huge financial blow due to a serious issue with your property (a fire due to faulty wiring, a problem resulting from flooding, etc.).
But before you run out and purchase the first policy that you come across, consider these tips for saving money on landlord insurance:
- See if you can get a new customer discount if it’s your first time creating a policy.
- Ask about discounts for having home security systems and smoke detectors.
- Ask the company who handles your homeowner’s insurance if they will give you a deal for creating a landlord insurance policy with them as well.
- See if membership in any organizations qualifies you for a discount.
These may not be the only ways you can save, so just flat out ask your insurance agent what you can do to get a better deal on landlord insurance. You may be surprised to learn that you’re qualified for certain savings that could help you financially in the long run.
8. Regularly check local rent rates.
Are you undercharging your tenants for their rent?
If you’re not sure, then there’s a good chance that you may not be charging enough. Fortunately, you can avoid undercharging by often checking the current market rates in your area for similar properties. From there, you can raise the rent as needed.
Just make sure you don’t overcharge – doing so could cause high tenant turnover, which can cost you a lot of money.
9. Hire a property manager.
While hiring a property manager does require a financial investment, doing so can save you time and money in the long run. Plus, some property management fees can be written off as operating expenses when you do your taxes for your rental property business.
The other obvious benefit of professional property management is that it can relieve you of unwanted responsibilities like rent collection, tenant screening, maintenance, and more.
If you’re interested in property management services, contact Bay Management Group today – we’d love to talk to you about how we can help you with your rental property business.