Buying rental property may increase your net worth and wealth. However, maintaining the said rental property can sometimes make that wealth flow out of your bank account. High-maintenance rental property may generate only tepid returns, or worse, negative returns. Therefore, as a proprietor, it’s in your best interest to reduce the maintenance costs and increase the rental value of the property you own. It is, indeed, easier said than done. So, here are some tips that will certainly help you reduce maintenance costs on any rental property:
Use Tax Deductions to Maintain
All rental properties do have some maintenance costs associated with them. The best way to manage these is to get the property to pay for its own maintenance. Rather than funnelling your funds from elsewhere to maintain a rental property, use money from tax deductions instead. You can use tax depreciation funds from an old property to maintain it. Also, don’t forget capital gains tax residence funds you may receive when you buy and sell property, or rent a property for business. Hire a good solicitor or another professional to determine how to get the most tax deductions for the properties you own.
Refurbish the Property
If you buy an old property at a low price, you will spend more money over the years trying to keep it from falling apart. Therefore, the best solution in this scenario is to spend a large lump sum at once to refurbish any old property you may buy. Both the overall value and the rental value of the property will go up if your revamp. Therefore, do not hesitate to spend money in this manner. Do not waste money fixing the roof every time is rains or snows. Instead, replace the roof and enjoy many benefits for a long time to come.
Rent to Businesses
Business tenants are willingly make maintain the property on their own, in addition to paying rent. This is more convenient for a company, as the business is not dependent on an outside party, the landlord, to keep the property in tip-top shape. You will also be able to charge more from business tenants without feeling guilty. So, if a property requires monthly maintenance, rent it out to a business client and ask them to bear the upkeep expenses.
De-Clog Drains between Rental Seasons
The number one reason for expensive maintenance bills is the clogged drains. Hair and similar material can clog drains easily. Over time, these blockages become worse and create complicated problems for the entire plumbing system. Do not expect your tenants to fix these problems as they might not be even aware of them. Therefore, make it a habit to clean all drains in the kitchen and the bathrooms every time a tenant moves out. If the place is occupied by a long-term tenant, make an arrangement to clean out the drains at least once a year. Cleaning drains costs next to nothing, while plumbing bills are expensive. It’s really an easy choice here.
Upgrade Old Appliances
Some appliances can last for ten or twenty years, and then they really need to be replaced. If you have old refrigerators or air conditioners that often break down, replace them. Buy new, top-grade equipment as replacements that will last another ten to twenty years and need only minimal care.
Don’t hesitate to use the above suggestions to cut back on maintenance costs at your rental property and save yourself a lot of money.