It may seem like operating costs are going nowhere but up. Rising energy and operating expenses are indeed making the day-to-day necessities of property ownership challenging. But you don’t have to sit on the sidelines and do nothing about it. There are several steps you can take to control operating costs on your rental units in Franklin County.
Start by Tracking Your Expense Data
When numbers seem to be spiraling out of control, it’s time to take a closer look at what the data is telling you. Dig into the numbers to see where your greatest expenses are occurring – and then use that information to make better decisions going forward. Where are you spending the most money and why?
For example, the data we track at RL Property Management shows that the maintenance category dominates our expenses. Knowing this informs our overall management philosophy and how we approach repairs and maintenance. Because labor costs generally account for the majority of our expenses related to a repair, we choose to invest in higher quality materials so the item will last longer and thus reduce our expenses over time.
Make Strategic Investments
Knowing what you now know about your operating expenses, consider strategic alternatives to reduce your overall costs over time. While this generally means making a larger upfront investment, the payoff is that the item tends to last longer and potentially experience fewer breakdowns and repair expenses over the lifespan of the equipment. For many appliances, there will likely be savings on energy expenses to boot.
Source High-Quality Tenants
Leasing to good tenants can be an overlooked way to reduce operating costs, but it’s an important one. When quality residents live in your rental property, you’re less likely to experience issues (and expenses) related to the unit. The resident is more likely to take care of the property like it’s their own and not be careless.
Operating costs are unavoidable, but our team at RL Property Management can help you budget wisely and make informed decisions about how to grow your real estate investment. Contact us today to learn more about how we can help you be successful with your investment.
