Cutting The Cost of Managing an Investment Property
It’s an unfortunate truth that many people (especially tenants) imagine landlords to leads charmed lives. They assume that if you have sufficient wealth to buy an investment property that you’re a member of an idly rich elite, sitting in an ivory tower counting your vast piles of money at their expense. The truth, however, is that every landlord faces a precarious balancing act in order to keep their investment properties profitable, especially in the current climate where many tenants are struggling with financial difficulties of their own.
Cash flow problems are becoming increasingly common for land;lords, while formerly promising properties are slowly turning into money pits. The problem for landlords, then, is how to keep the cost of managing their properties reasonable without compromising the quality of service that their tenants expect. Fortunately, we have some suggestions that may help to keep things manageable for you…
Use a trusted local handyman for repairs
Lots of landlords come from a background in the construction industry, and so tend to be fairly handy themselves. As such, they’re able to carry out their own repairs if damage is done to the property (although you should know your rights if damage is done by a tenant). Still, if you don’t have this set of skills, don’t assume that using your letting agent / management company’s contractor will be the most cost-effective solution. You may find that developing a good relationship with a local handyman saves you money while potentially even providing faster response times. So your tenant feels like they’re getting better value from you. And happier, longer-term tenants means less stress and costs associated with your property.
Go through an insurance broker
It goes without saying that your investment property needs an insurance policy. And searching for the most cost-effective policy for your needs can be a time-consuming and painstaking affair. You could be forgiven for assuming that adding a third party into the mix would mean more cost. But an insurance broker like one sure insurance can not only help you to find a cheaper policy, they can help you to find a policy that’s perfectly tailored to your needs. So that you never have to pay over the odds for features that are surplus to requirements.
Choose a management / lettings company with scalable services
Speaking of services that are surplus to requirements, most letting agencies and property management companies offer a full gamut of services. But not all of these may be necessary to your property. Don’t settle for a letting agency that has a “one size fits all” approach. It’s a sure way to find yourself paying over the odds. Some aspects of managing your property (like showing tenants around, advertising your property, carrying out security checks etc.) may be better left to them, but you may wish to manage the day to day running of the property by yourself.
Finding a letting agent with a flexible pricing structure and scalable services is a great way to ensure that you’re always getting good value for money.
Keep a close eye on costs, and you’ll ensure that your property remains profitable, even in these uncertain times.