Top 3 Tips to Minimize Property Maintenance Costs
Maintenance costs can be a major headache when it comes to managing your rental properties. You always have to be prepared to face structural issues, and plumbing and fixture inspections, and what comes with it is hefty out-of-pocket costs.
Your rental property needs care not just because of wear and tear, but on an even more regular basis to make it safe and attractive to prospective tenants, as well as minimize maintenance costs over time.
Here are some fundamental tips and tricks to make sure you’re able to be efficient in maintaining a problem-free property, all while incurring minimal costs.
Create a Repair and Maintenance Fund
There are several ways in which you can make savings for property maintenance costs:
Some landlords follow the 1% rule, which means you set aside 1% of the property value to cover expenses annually. Another good rule of thumb is to save $1 per square foot of your property.
50% of Rental Income
Others like to take a more regular approach, by allotting 50% of monthly rental income to operating and maintenance costs.
By planning ahead and ensuring you have funds set aside for repair, you won’t stress out about how to pay when the time comes.
Obtain a Full Inspection Report to Prioritize Jobs
The reality of home maintenance can be quite harsh.
Ask any landlord how overwhelming it can be to think about everything that needs to be done to prepare for a new tenant or even for regular upkeep. But the best way to beat this mindset is to prioritize what needs to be done and keep track of it all in a spreadsheet.
To prevent further repairs down the line and to resolve the most urgent issues first, you can obtain a full inspection report of your property. This should be done annually for preventive maintenance, and specific inspections should also be done seasonally in spring/summer and fall/winter.
If, say, your roof might need replacing in 10 years, add that to your maintenance timeline spreadsheet so you can address it in due course.
Negotiate the Best Deals with Contractors
Because you’re in the business of rental and property management, that also means you’ll have to build solid relationships with home experts and contractors in your area. When you regularly deal with contractors, you’ll also have the chance to negotiate rates, obtain discounts, and minimize costs in the process.
For instance, a good way to jumpstart your search in Metro Detroit is to look up fully licensed residential builders and contractors and licensed electricians, plumbers, and mechanical contractors on the Michigan Licensing and Regulatory Affairs website. You can also ask friends, family, neighbors, and colleagues for references to establish a contractor track record and trustworthiness or go to your local home improvement store to meet contractors who are shopping for their other jobs.
Preparation and Planning is Key
In the end, landlords need to have a plan to maintain their rental properties without breaking the bank.
Maintenance proactive proactive problem-solving skills from you, which means taking charge of preventive maintenance, scheduling seasonal maintenance, and anticipating emergency maintenance needs.
The good news is, you aren’t alone.
Reach out to our team of experts today to see how we can stay on top of every maintenance requirement in your rentals, hassle-free.