Rental property management offers convenience and cost savings, but it’s a responsibility you must take on yourself if you want to stay within budget. Self-managing your rental property does bring its share of challenges, but it can be made easier with careful planning and efficient operations. In this article, we discuss eight tips to cut costs when self-managing your rental properties.
- Develop a Property Management Business Plan
Before you begin, it’s important to have a plan in place. Taking the time to develop a business plan will help you assess the costs associated with renting out your property, and drive your strategies going forward. There are no hard and fast rules when it comes to writing a plan, but following a few key steps can help you save money in the long run.
Start by doing your research and gathering data around the rental market in your area. Consider factors like the rental costs, rental demand, the number of properties in the area, type of tenants, and the features likely to draw in renters. Afterward, create a timeline for setting up operations, list out the best practices for managing tenants, and map out a budget for the next year.
- Create an Effective Online Presence
It’s important to have a strong online presence when self-managing your property. Potential tenants want to be able to find you quickly and easily, from multiple sources. Start by creating a website for your property management business. This can be an inexpensive and efficient way to inform prospective tenants about your rental spaces, rates and services you offer. Make sure it’s optimized for search engines, so you show up in search results when prospective tenants look for rental options in your area. You should also create social media pages and list your offering on property listing sites.
- Leverage Free Property Management Tools
You’ll need to invest in tools to manage your property efficiently, but there are many free tools available to self-managers. Consider tools like those that can help with tenant screening and background checks, collecting rent payments, managing tenant leases, and tracking expenses. Use free or low-cost software to track expenses and pass on the cost savings to your tenants.
- Response Time
Response time is key to successful property management. Prospective tenants want to know their needs are being addressed as soon as possible, and current tenants should be able to get in touch quickly for maintenance requests and more. Investing in a system to track your communication will help ensure you are reaching out to tenants in timely fashion, giving you an edge over competitors.
- Cut Unnecessary Expenses
Unnecessary expenses can quickly add up. Take a good hard look at your budget, and see what costs can be eliminated or reduced. Consider services you can take care of yourself that don’t require advanced expertise, or shop around for cheaper contractors where possible. Get rid of services you don’t really need, and make sure your expenses line up with your budget.
- Rely on Self-Repair
Repairs and maintenance are inevitable, but many minor issues can be resolved without professional help. If a repair is within your expertise, don’t be afraid to take matters into your own hands. There are plenty of online resources you can use for guidance. Spend some time learning the basics of simple repair jobs, and you may be able to do them yourself and save some money.
- Put Emphasis on Tenant Retention
Tenant retention is the key to saving costs in the long run. This means you should focus on keeping good tenants and avoid having to put too much effort into searching for new ones. This means managing your tenants well and addressing their rental and maintenance needs in a timely manner. Promote networking among tenants to establish a strong community, and address disputes quickly and fairly.
- Consider a Property Management System
Using an automated property management system can be one of the best and most cost-effective steps you can take. Automation tools can help streamline and simplify many of the essential processes involved in self-managing a rental property. This can include helping you with tenant screening and applications, drafting leases, collecting rent payments, and reminding tenants of their upcoming payments.
Self-managing your rental property can be a challenging and rewarding experience. It’s important to keep costs within your budget, and you can do this by developing a plan, leveraging free property management tools and online resources, automating processes, and keeping your tenants happy. Taking the time to plan and invest in the right tools and technologies can help save your rental property money.
