Save more money with these Top 5 Hacks for your Property’s Major Expenses
While every landlord’s goal is to maximize their rental income and get it straight to their pockets, running a rental property is more than just about collecting your tenant’s monthly payment. An expert landlord knows that it is necessary to allocate a certain amount of their income for property maintenance. Properly planning and doing a…
While every landlord’s goal is to maximize their rental income and get it straight to their pockets, running a rental property is more than just about collecting your tenant’s monthly payment.
An expert landlord knows that it is necessary to allocate a certain amount of their income for property maintenance.
Properly planning and doing a smart “guestimate” can help in creating a budget for property maintenance. As the expenses for property maintenance can be unpredictable, you should plan so you don’t get surprised with unexpected property issues.
We are listing down important hacks you need to do to be prepared for any major property maintenance expenses.
Create a budget for your property maintenance
Expenses for property maintenance varies per month.
One month you may be spending at least $100 on maintenance repair, next month you have $20, then the next you may not spend anything at all.
So, how do you effectively create a budget for your property’s maintenance?
There are ways landlords do it.
First is they save at least 50% of their monthly income and designate it for property maintenance. 50% is for covering fixed expenses ( taxes, insurance, utilities ) then 50% for property maintenance. The leftover cash is what will be going to your pocket.
Another way is to set aside 2-3% of your property’s market value of the year towards future property maintenance. This is great if you plan on doing big repairs or renovations. If your property’s current value is at $100,000, you save 2% or $2000 yearly for maintenance and repairs.
Some landlords do both of these two budgeting strategies. What is important is you have enough emergency funds to cover for the expenses of your property’s maintenance.
Doing frequent property inspections is an essential hack for any property maintenance and expenses. By doing these inspections, you are up to date with your property’s current state and you can resolve any issues that can cause bigger damage and can get more expensive if left unrepaired.
For example, replacing drywall due to leakage could have been prevented if you were able to detect that pipe leak by doing a thorough inspection.
Why spend a couple of hundred bucks if you could have saved a lot if you were keen enough to do an inspection. You save a lot by being keen enough to go through an intensive checklist.
Some property owners do not include routinary property inspection as one of their priorities. They neglect to see how it fits to achieve long-term investment property.
So get ahead of your game and add value to your property by doing regular inspections. Fix small issues right away and plan repairs if it’s necessary.
This hack is very beneficial to all landlords and you should take advantage of it.
Expenses to be aware of
There are a lot of property maintenance expenses you should be aware of. Maintenance and repairs can be unpredictable, however, if you know what expenses you should watch out for, effectively create a budget plan and a little luck, you’ll be successful in covering all the costs.
What you should be aware of:
- Seasonal Maintenance – this depends on where your property is located. Seasonal maintenance includes clearing of snow and ice in winter, cleaning the gutters and pruning the trees and branches in fall, and checking the HVAC. You also have to consider seasonal cleaning costs.
- Appliances – there are times when appliance maintenance falls on the hands of the tenants, like changing the air filters or cleaning out the dryers. However, your tenants may tend to forget them or not do them at all, which may shorten the lifespan of your appliance, which in turn will be an added expense to you.
Doing regular appliance maintenance to your HVAC, stoves, washers, dryers, and refrigerators can help in extending their life span and avoid replacing them.
- Replacements – this is something that is bound to happen, after all, nothing lasts forever. The time will come that you will need to replace that kitchen cabinet, roof or paint.
As a wise landlord, if you do property maintenance, you are aware of your property’s condition and can plan on what replacements are needed to be done.
- Emergency – you will never know when this will happen, as of course, it is an emergency. These kinds of repairs usually happen in the middle of the night during a snowstorm, the air conditioner is broken during summer and other emergencies. That is why it is important to inspect once the season changed to anticipate any emergencies. It’s hard to predict emergencies so you should always have an emergency fund stashed.
- Property Damage – whether intentional or not, property damage happens and when it does, you have to be prepared.
If the damage was caused by your tenant, you can bill them with the cost of repair, however, the time it will take to restore the property means loss of income.
There may be times that the tenant or the person responsible for the damage is not able to pay for the expenses, leaving the landlord to cover the expenses.
So you have to be aware of the expenses for the loss of rent as well as possibly covering cost to repair the damage.
- Pest Control – this may not happen to your property but if it does, pest infestation can cause big damages to your property and can cause rent loss. Once a pest infestation is detected, act on it immediately to protect your tenant’s health, safety, and property.
Top major home repairs
Most of the time, the major repairs in a property are the things that you don’t pay attention to.
These types of major repairs are the ones that can break the bank and can cause bigger damages. If you know what are the items you need to watch out for, it will be easier for you to prepare for it, cover the costs and even minimize your expenses.
The major home repairs you should watch out are:
- Foundation repair – these types of repairs are quite complicated. They can be a safety hazard and expensive. It is important to watch out for signs that your property’s foundation needs repair.
Early indications are the doors and windows won’t shut or don’t fit the frame properly, sloping floors, cracks in the walls and water accumulating around the house.
- Roofing – this is the most important part of the house as it protects your property from different elements like the sun, rain, and snow. If the roofing shows signs of damage, it is necessary to fix it right away.
- Electrical Issues – any unkept and exposed electrical wirings pose a danger to the tenants and the property. If you notice your lights flickering or shock from your appliances, contact a professional right away as electrical issues can cause an electricity outage or worse, be a fire hazard.
- Water Damage – water is one of the biggest reasons why a property gets damaged. Either by flooding, leaking or damaged, if it is left unrepaired will cause mold growth, metal rusting, cracked walls, and rot wood. Be sure to be on the lookout for any signs of water damage in the property.
- Heating and AC – these systems seem to break every time you need them the most. The heating system breaks during the winter and the AC often breaks during the summer. Always anticipate expensive repairs to happen during these times and make sure you are ready to cover the costs of repair.
The life span of most important property attributes
The last hack that will save you from expensive repairs is knowing the lifespan of your property’s most important features. If you know how long they can last, and you maintain them properly, you will be able to enjoy your property’s important features.
- HVAC – 10-15 years
- Roofing – 15-20 years ( depending on the type used )
- Skylights and Windows – 10 – 30 years ( depending on the materials used )
- Major Appliances – 10-15 years ( gas range, dryers, and refrigerators have the longest life spans )
- Cabinets and Storage – up to 50 years
- Concrete and Masonry – these can last up to a lifetime, just make sure to maintain them regularly
- Decks and Outdoor features – it may vary because they are subject to different climates, depending on the material used, can last up to 20 years
- Doors – 30-50 years
- Electrical and Lighting – 10 years
- Faucets and Feature – 20-50 years
- Flooring – up to 100 years, depending on the material used
- Footing and Foundation – up to 10 years
The advantage of knowing the life expectancy of your property’s feature is you get to plan and save up, especially if you need big replacements. No surprises and unexpected expenses as you are prepared.
With Green Ocean Property Management, we make it a breeze for our clients and make property maintenance one of our top priorities.
We know maintaining a property can be a nonstop job. We ensure our clients that we are always on top of the situation. Any emergency repairs and maintenance requests are done immediately.
It all boils down to Property Inspection.
Green Ocean does proactive bi-annual property inspections so we always know the current condition of the property. If any issues need attention right away, we let our clients know and plan the next steps to do repairs. We do this to avoid bigger damage and expenses.
Regular property inspections increase the value of the property as well. This is one of our key strategies in maximizing the potential of your property investment.
We made property maintenance easier with Green Ocean too. We recently launched a system called Property Meld.
Tenants can easily submit a maintenance request online and landlords will get updates to its progress from start to finish. Our property manager will contact the landlord if any issues need to know as well.
The best part is, this system is free for all of our landlords! Feel free to visit our website at https://greenoceanpropertymanagement.com/.
We want all of our clients to save as much as they can.
Fewer expenses mean more income for our landlords. We want their experience to be hassle-free. We aim to improve their daily lives by providing services that will solve all of their property’s issues.
Interested? Reach us at firstname.lastname@example.org or call 617-487-4868. You may also visit our office at 268 Centre St Newton MA 02458.
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