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Rising inflation makes everyone think about reducing their costs whenever possible. For property managers, the challenge of keeping general expenses low and high tenant morale remains a priority, regardless of the current financial climate. Property management companies are always looking for smart ways to reduce costs, from utilities to building maintenance and all the other bills in between.
So what does this mean for your property and managing these costs with an eye on your results? Consider the following solutions and think about how they can help you reduce the cost of running your rental property.
1. Conserve water
Sounds easy, doesn’t it? Monitor your usage and keep these water bills under control. Unfortunately, many homeowners and managers are not even aware of how much water is wasted on their properties.
- Undetected leaks You have the ability to increase your water consumption by almost a third of your regular usage rates. Keep a close eye on your water meter; If you notice that any of your properties are showing a sharp increase in water usage, you may need to diagnose the problem by looking for leaks in the plumbing. This leak can be anywhere and is likely to be small, dripping drips your benefits down the drain. If this is a leak you can see, you can fix it. On the other hand, if the water source remains a mystery, you may have a potentially bigger and more costly problem on your hands. A leak not found could be located somewhere deep in the bowels of the property and as a result could be causing significant water damage.
- Reduce the usage rate. Rental properties have begun to incorporate special features designed to enhance the tenant’s experience while making the costs of the day-to-day operation more affordable. More management companies are installing highly efficient alternatives to plumbing fittings. These include dual-discharge sinks, which reduce water usage by up to three gallons per discharge, and efficient shower heads that have a flow rate of less than 2.5 gallons per minute (gpm), half the speed of outlet of traditional shower heads. Since we are talking about saving money, the idea of changing all the heads and toilets of your properties can be an expensive proposition. However, there is another option: instead of going with brand new accessories, consider buying aerators and installing them in your faucets and shower heads. They are much more efficient in comparison, even if they do not offer the same conservation rates as whole accessories.
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2. Replace your landscaping
Think of all the ways to use water on your property. You may be surprised to learn that your choice of landscaping can put a lot of pressure on your resources. Replacing shrubs, trees, and grass for less water-dependent options can save you a lot of green when you don’t spend it with your green thumb. Paving grassy areas for more welcoming common areas that your tenants can enjoy without the need for expensive water sprinklers and irrigation systems can help drastically reduce your costs.
3. Change to green energy
Property managers have begun to realize how affordable it can be to be greener as they install more energy-efficient options in their rental units. Reducing your building’s energy consumption could play as important a role as reducing your building’s water consumption. Converting to green energy incorporates a variety of measures designed to reduce your carbon footprint and save money on your bargain energy bills.
Smart thermostats have become increasingly popular as consumers can program these devices to turn the air conditioning on and off automatically, even when they are not at home. The type of lighting you choose to install in common areas and outdoors will also help you save money. LED is the way to go now; incandescent bulbs are a thing of the past. You might even consider installing energy-efficient washers and dryers for tenants to use. If you supply appliances from your units, look for refrigerators that are highly energy efficient. Taking the time to evaluate the electricity bill for your properties can also give you a clearer idea of how much energy you could be saving.
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4. Routine maintenance
You know the old saying, “Never postpone tomorrow what you can get today.” I wish more landlords and stewards would start repeating this like a mantra, because I know too many of them that they haven’t even practiced the most basic maintenance of their properties and paid the price later. Perhaps the most expensive repair of any property is the roof, and eight times out of 10, the reason for this costly repair was due to a roof that was not cleaned regularly. Branches, leaves and other miscellaneous debris can build up on the roof of a house or apartment building and cause serious damage if left unchecked. A damaged roof is a leaky roof, and repairs can be very expensive.
If you are not cleaning the roof of your property at a rate of 18 to 24 months, you are only asking for higher repair bills. I assure you that the cost of having your roof cleaned by a professional is much less expensive than having it repaired by that same professional. Current building materials are built to last, but when neglected, they will degrade much faster than you might expect.
All of these ways of reducing costs require a little financial investment. But spending some time now can make sure you pay much less later. A rented property with responsible maintenance continues to generate income because tenants want to live in it. Always keep that in mind.
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