Landlords are generally thrifty individuals. And they should be given all the expenses that add up when owning a property and renting it out. In this post, we discuss how to save money as a landlord in Madison, or at least some of the options. There are other more advanced options that we’ll cover in future posts. To bring more value to the property you must make upgrades and repairs. You can find ways to save money making repairs in order to always keep your property in tip-top shape.
Repairs aren’t necessarily the place where you want to skimp on costs. However, there are some great ways you can save money on repair costs for your Madison rentals. Below, learn about some of our favorite ways landlords can save money making repairs on your Madison investment properties.
Get A Team Of Contractors Together
When looking at how to save money as a landlord, don’t forget about your team. Contractors can be a pain and anybody that owns anything needs to deal with contractors at some point. Yes, some of these contractors will cause some hardship and annoyance but you’ll eventually lock in a great team of contractors that you can rely on again and again. Look for good ratings online, a solid work ethic, and values that are aligned with yours. You might even consider interviewing them with a set of questions that tells you whether or not they are a good fit for what you need and who you like to work with. Taking this approach will mean spending more time up front but you will probably save a whole lot of time…and money not having to deal with unvetted and costly contractors.
Consider Scheduling Things Yourself
When you leave the repairs up to the tenants, it is like handing them a blank check. They aren’t going to be worried about saving you money, they are going to worry about getting the problem fixed. If you want your repairs done right and done at a fair price, it is best for you to handle them yourself, finding your own people to do the job. Once the repairs are completed, you can make sure they are up to your level of satisfaction. If your tenant had chosen the vendor, you might find yourself having to pay for poor workmanship.
Don’t Skimp On The Screening Process
Sometimes the repairs are needed because your tenant caused the damage. One way to avoid such problems is to ensure you are screening your tenants thoroughly. Talk to your prospective tenant’s past landlords, and run background checks on anyone who will be living in your home. Even if you know the person who wants to move in, don’t assume they will take as good care of your property as you need them to. Always encourage your tenants to report any problems or unusual things they are noticing. If your tenant is able to help you discover a leak right away, you will be able to save thousands in water damage costs you may have otherwise been forced to face.
Prioritize The Right Repairs And Use The Right Materials
Sometimes a whole bunch of repairs come up at once. Perhaps the tenant wasn’t informing you about issues but upon inspection, there were a whole bunch of minor repairs found. Where you don’t compromise safety, consider taking things one at a time and dealing with the more important repairs first. That could mean replacing the roof before replacing the appliances (if the appliances are still working).
In addition, consider a different set of materials. In fact, contrary to what this post might suggest, maybe you should consider installing higher end or more durable finishes. These things could consider better countertops, more durable floors, or maybe even a metal roof. This is especially true if you plan to hold onto the property for an extended period of time. Just think about all the repair costs you’ll save in the future by spending a little more now. Want to know some of the major repairs we see? Take a look at this post about some fixer-upper issues we’ve encountered in Madison.
Make The Repairs Yourself
You may not be an electrician but there are plenty of repairs you can do yourself if you have the time. We’re not necessarily recommending this because we believe in building out a team to take care of these things for you (property management or contractors). That being said, sometimes you just have to get your hands dirty. Of course, this should only be done if you are confident in your abilities and know what you are doing. Don’t bite off more than you can chew or you are likely going to find yourself with even more repairs to make! Know when to call in a professional and when it makes more sense to handle it on your own. Sometimes the DIY aspects of being a landlord can appear unglamorous, but when you see that tremendous ROI, it suddenly won’t seem to matter so much.
Landlords face many costs over the life of their investment. By being able to make repairs in a cost-efficient manner, landlords can save money, and put more of their profits in their pockets.