Four Easy Ways To Reduce Property Management Expenses
With tax season quickly approaching, you are probably reviewing your finances for the past year. If you find that your profit margins are low because your operational costs are high, there are some ways you can scale back while still offering great service. Here are some simple ways to reduce your property management expenses.
1. Look Into Sustainability Solutions
Sustainability not only has the benefit of reducing your costs, but it is a key amenity that attracts new renters. Replacing your common space light bulbs with LEDs, improving your insulation, and installing energy star rated appliances can save you big on your utility costs.
2. Prevent Damage Rather Than Repair Damage
Investing in routine maintenance to prevent damage to your property can save you costly repairs. There are several ways to do this such as creating a checklist of routine maintenance checks, hire a handyman to fix minor issues, implement strong damage terms in your leasing agreements. How you implement this process depends entirely on the specifics of your rental.
3. Automate Business Processes
There are plenty of ways you can automate processes like payroll, rent collection, and even marketing. Automation can save man hours, leaving your employees free to cross-train and take on more duties. Automation is also very affordable and there are a ton of options available for nearly every job function.
4. Reduce Renter Turnover
It is much more cost effective to keep existing renters than finding new ones. Audit the costs of filling vacancies from marketing overhead to background checks to empty rentals and determine an average figure. With that figure as a baseline, you then can offer special rates, deals, and discounts when a renter informs you they are moving. Discounts will reduce turnover rates and save you money in the long run.
There are a lot of ways to reduce the costs of property management expenses. These are just four of the easiest to implement. For other money saving ideas, contact Occupancy Solutions. Our experts will review your current financials and offer ways to help you save even more!