How much are you spending on maintenance costs for your rental property? If you don’t know this number, then you’re probably overspending. Even if you do know, it could be higher than it should be. Your rental property is an investment, and overspending on maintenance unnecessarily reduces your ROI.
These tips will help you get your rental property maintenance costs under control.
1. Start With a budget
The first step in avoiding overspending is to set a budget. Determine how much you can afford and what investment value makes sense for the property. This gives you a guideline before you get started and helps you avoid overspending.
Once you have an established budget, stick to it. This can be the most challenging part. It helps to check your financial statement monthly or quarterly. This helps you know how much of your budget you’ve used so that there’s no unpleasant surprise at the end of the year.
2. Avoid Paying With a Credit Card
People lose track of their spending when they pay with a card. The simple entering of numbers or swiping a credit card isn’t the same as writing out a check or handing over cash. While you want to create a money trail, you shouldn’t depend on a credit card to do this. Create a spreadsheet or use financial software to start tracking your spending. This helps you to treat your rental property like a business and take expenses seriously.
Additionally, credit cards are expensive. You’re paying for the maintenance bill plus the interest the credit card company charges. This increases your maintenance costs unnecessarily.
3. Focus on Practicality Over Design
Focus your spending efforts on functionality over design enhancements. This is your investment property, so you don’t need to go all-out. You only need to ensure that it’s functional.
Carpeting creates a home-like feel but isn’t a smart choice for your rental property. It wears out quickly and requires replacement every few years. Vinyl plank flooring is a better option. It’s durable, waterproof, and cost-effective.
4. Get Multiple Quotes
Always try to get at least three quotes from contractors before choosing to work with one. This ensures you have a good understanding of what services in your area cost. You’ll be able to avoid paying top dollar for services and ultimately saving money.
Thoroughly research the contractors that you request quotes from. Only work with reputable contractors that are licensed and insured. They should also have a strong history of reliable performance and quality work. This will ensure the work that you have done is high quality and will last. Otherwise, you’ll ultimately spend more, in the long run, having shoddy work fixed soon in the future when an unreliable contractor’s work doesn’t last.
5. This Is Not Your Home
Always remember that your rental property isn’t your home. This isn’t your chance to build your dream home with the latest features, technology, and design elements. Focus on the maintenance needs and property improvements that are important to your renters. This could vary significantly from what you consider important.
Perhaps you’d love to remodel the bathroom and give it a modern feel. However, the toilet needs replacing. Instead of dedicating your budget to the makeover, you should focus on repairing the toilet.
Work With an Expert
If you’re still struggling to reduce your rental property’s maintenance costs, it can help to work with an expert. A property manager can help you set a reasonable budget for your rental property and then stick with it. They can also connect you with reputable contractors in the area. Then you’ll receive monthly statements outlining your property’s maintenance costs.
Contact our office today and let us help you reduce your maintenance costs and avoid overspending.