 lower your rental expense (by Daphne [OH]) Oct 14, 2015 4:56 PM
 lower your rental expense (by AllyM [NJ]) Oct 14, 2015 5:07 PM
lower your rental expense (by Toddb [MN]) Oct 14, 2015 6:24 PM
lower your rental expense (by Robert,Ontario,Can [ON]) Oct 14, 2015 6:38 PM
lower your rental expense (by S i d [MO]) Oct 14, 2015 6:58 PM
lower your rental expense (by melinda [MD]) Oct 14, 2015 8:50 PM
lower your rental expense (by WMH [NC]) Oct 15, 2015 3:54 AM
lower your rental expense (by David [MI]) Oct 15, 2015 4:21 AM
lower your rental expense (by ToddB [MN]) Oct 15, 2015 4:29 AM
lower your rental expense (by S i d [MO]) Oct 15, 2015 4:52 AM
lower your rental expense (by TIM [IN]) Oct 15, 2015 10:20 AM
lower your rental expense (by Robin [WI]) Oct 15, 2015 6:23 PM
lower your rental expense (by Daphne [OH]) Posted on: Oct 14, 2015 4:56 PM
Message:
State Specific Question About: OHIO (OH)
what inexpensive/simple things have you learned to improve your bottom line? --72.244.xxx.xx |
lower your rental expense (by AllyM [NJ]) Posted on: Oct 14, 2015 5:07 PM
Message:
Keeping branches away from the house preserves paint and doesn't give critters a ladder to go in.
Using high quality flooring in the kitchen saves repairs. Using good vinyl tiles makes it possible to repair a problem without major expense.
Taking a small pet keeps people in their units for years and years so there is not constant turnover.
Seal coat the asphalt driveway.
Don't use salt on the concrete. Buy the calcium even though it's a bit more costly.
Buy olefin Berber carpet in a darker shade. Carpet bedrooms in burgundy because a red makeup stain will be hidden.
Make the unit look good enough that you would live in it and you will keep more tenants, not inexpensive but it improves the bottom line.
The cheapest thing is just allowing little four leggers in your units.
--73.33.xxx.xxx |
lower your rental expense (by Toddb [MN]) Posted on: Oct 14, 2015 6:24 PM
Message:
Stuff we did this year.
Low flow shower heads, flappers, aerators and fluid masters. Reduced water expense by 20%. Hugre return on invested dollar.
Switched to all LED bulbs lowered our electric light expense by 33%. 150% return.
Increased deductible on insurance policies. 50% return but added risk.
Looking at a way to reduce drain cleaning costs. Also into a key machine to save time and money. --73.24.xx.xxx |
lower your rental expense (by Robert,Ontario,Can [ON]) Posted on: Oct 14, 2015 6:38 PM
Message:
First off look at each operating expense then look for ways to reduce each operating expense. Building supplies. Consider shopping at few Habitat for Humanity restores to look for building supplies instead of the big box stores. Often it is better to visit more then one restore. Miss tint paint can be bought for a fraction of the price of what the big box stores sell for. Look at buying more power tools where more work can be in house instead of contracting out. Often one buy good quality contractor grade tools instead of the cheap homeowner grade which are basically four hour tools which means four hours of continuous use then the tool is finished. Often was able to buy many power tools on the internet sites. A bench mark for a quality power tool is the power tool is CSA or UL rated. Appliances if provided can be bought on the internet sites. Here a lot of houses change to stainless steel then the white appliances are sold off when a kitchen is renovated. Recycle instead of throwing out. Scrap metal once a quantity is reached there is a certain amount one can get money for. Donating to charities instead of taking to the dump where one incurs charges. Look at improving energy efficiency where ever possible including ones personal home. Anything natural gas is cheaper to operate then electric. Look at insurance and other costs to see if one is getting the best possible price when one compares coverage. Buy materials which last longer instead of the cheap stuff which wears out in a few years. Commercial grade porcelain tile or ceramic tile is more expensive upfront but over the long term will be easier to clean and maintain. Commercial locks grade one or two are designed to outlast the cheap grade three locks. Avoid using shingles when replacing where a metal roof will last at least thirty years or more. Once one has the dimensions then price out the materials. A difference of a thousand or two thousand the roof will outlast shingles many times over. With one layer of shingles a tear up is not necessary. A lot depends on the type rental one has. Single family homes are different then a townhouse or rental complex. Finally if not a member of landlords association consider joining one. There are listings on this site or google to find near you. --74.220.xxx.xx |
lower your rental expense (by S i d [MO]) Posted on: Oct 14, 2015 6:58 PM
Message:
My two highest expenses are vacancy and turn over. Make your # 1 goal finding good, long-term tenants who pay on time and don't damage the property, and the other stuff like flappers and flooring take care of themselves. --173.16.xxx.xxx |
lower your rental expense (by melinda [MD]) Posted on: Oct 14, 2015 8:50 PM
Message:
Pick up inexpensive cabinets, light fixtures, smoke alarms and other household items at Yard Sales. The prices are usually very low. People replace what they had and are just glad to get rid of them. We usually pay $2-4 for light fixtures. Just picked up a new in package smoke detector for $2. --24.233.xxx.xx |
lower your rental expense (by WMH [NC]) Posted on: Oct 15, 2015 3:54 AM
Message:
1) Everything Sid said.
2) Standardize. You might get sick of that same flooring, paint color, light fixture, faucet...but to tenants, they are new and exciting. It save tons of time when doing a rehab to not have to dither over fixtures. Choose standard stuff that is easy to repair, not off-name brands because they are cheaper to buy. --173.22.xx.xx |
lower your rental expense (by David [MI]) Posted on: Oct 15, 2015 4:21 AM
Message:
Time = money. Don't spend time on repairing things that cost relatively little to replace. Like faucets, toilets, deadbolts/locks, etc etc.
Even appliances , I just had a 1 year 1 mo gas dryer die, just after warranty expired. So rather than spend around $100 for labor, $100 for parts, two trips of the tech, I spent $350 at lowes with free delivery and install. --209.95.xx.xx |
lower your rental expense (by ToddB [MN]) Posted on: Oct 15, 2015 4:29 AM
Message:
If you rent SFH, you have low expenses and your value is not based on the net income so some of this might seem silly. Apartments, which are valued almost solely on net income, require a tighter pencil in my opinion.
Sid, my vacancy rate is 4% and my water bill is 6%.
--73.24.xx.xxx |
lower your rental expense (by S i d [MO]) Posted on: Oct 15, 2015 4:52 AM
Message:
ToddB's response prompted me to clarify.
Vacancy and turn over WOULD BE my biggest expense if I allowed it to get out of control. As is, my occupancy rate of paying tenants is 97%....but it used to be as bad as 85% back before I learned careful screening, quarterly inspections, and zero tolerance for excuses.
Most land lords think of expenses are "X broke, so I pay $$$ to fix X." True enough. But then when a unit sits vacant for a month and nothing breaks, they don't count the lost income. Big mistake that I used to make.
Think of it this way: if I have a $500/month rental (I do) and average 1 month's vacancy every 2 years (I used to), that adds up to $2500 lost income over a decade. Enough to buy a new central gas furnace installed at retail!
So, tracking down the best flapper or finding good, long-term tenants: where ought we focus the bulk of our efforts?
P.S. ToddB....I hear you on water being more than vacancy in your case. However, I also rent SFH's and I don't pay water, so my expense there is 0, unless I'm vacant in which case I pay a flat $35 fee for the privilege of being hooked to the system. Also, my humble "Class C" houses are valued based on cash flow only. These are not in your typical owner-occupant neighborhoods, and the only buyers are going to be land lords.
P.P.S. David, well said! After my most recent toilet fiasco (where you advised me to replace and I did not at first) I am now likeminded with you...REPLACE! --173.16.xxx.xxx |
lower your rental expense (by TIM [IN]) Posted on: Oct 15, 2015 10:20 AM
Message:
-Every year, call around on one of your insurance policies for a property.
-Use allure/laminate/tile... NO CARPET.
-Appeal your property taxes
-Install water meters for each unit if it isn't separated out. Huge savings. Paid for 2 meters in less than 6 months on this duplex.
-Use ceramic disc valves on faucets and shower valves
-Go flapperless on toilet if you can get your hands on them.
-Keep vacancy down, but don't hesitate to use your zero tolerance of late rent. Huge collections can off set keeping vacancies up with deadbeats in it.
--67.236.xxx.xxx |
lower your rental expense (by Robin [WI]) Posted on: Oct 15, 2015 6:23 PM
Message:
Find those rare contractors who know how to work on rental properties: fast, cheap, and good. Ask other landlords for referrals, but make your own evaluation of their contractors. --71.72.xx.xxx |
Reply:
|
|