If there is one common goal that Sacramento landlords always share it is the desire to save money and improve their bottom line. Whether 2020 was the most successful year for your portfolio yet or left you in ruins, there is no doubt that you are looking at the new year as a new opportunity to improve your standings. There are many ways for you to improve your bottom line and save a few bucks but not all of them are truly in your best interest in the long run. So today, I’m dishing up some of the smartest ways for you to cut costs right now and set yourself up for a winning year as a Sacramento landlord.
Invest In Energy-Saving Renovations
Energy saving improvements to rental properties are all the rage right now because they benefit both the landlord and the tenant while of course helping to preserve the health of the environment. In fact, Freddie Mac put out a report stating that a few strategic energy saving upgrades to the average rental unit can save tenants about $300 per year on energy costs on average. Those savings may also directly benefit you if you’re paying for certain utilities like water or electric.
Get Serious About Keeping Up With Maintenance
Up until now or perhaps even just recently, it is common that landlords have scrimped and saved by taking maintenance shortcuts just to get by. While I can understand the reasons why you may be tempted or even feel you need to do this, it truly isn’t in the best interest of anyone involved. Not only can cutting corners on property maintenance lead to injuries for your tenants but they can also get you in trouble with the law or even land you in an expensive lawsuit. Trust me when I tell you that it saves you far more money to invest in preventative maintenance and to always do the job correctly then it will to cut corners.
Refinance If Your Haven’t Already
You would have to be living under a rock for the last year to know that interest rates have hit shocking and record-breaking lows. Depending on how long ago you purchased your investment property, you could be overpaying in your interest rate by hundreds or even thousands of dollars. Over time that annual overspend can really add up and damage your bottom line. Although there will be some costs involved, you should definitely consider or at least consult with a lender to see what your refinance options are and how much money you stand to save over the length of your loan.
Hire The Best Sacramento Property Manager
Finally, if you have not already partnered with a professional Sacramento property manager you should seriously consider doing so. Not only will a professional property manager save you enormous amounts of time, frustration, and headaches but they can take a look at your portfolio and show you exactly what needs to be done this year to optimize your profits. Furthermore, when you hire Alpha Property Management you can enjoy the added peace of mind that your units will always be filled with the highest quality tenants thanks to our thorough screening process and “rented in a month or less guarantee”.