3 Money Saving Tips for Landlords

Source: http://www.compstat.org/3-money-saving-tips-for-landlords/

Invest in property management software

The first thing you should do to save money is invest in property management software to help plan your projects more effectively, save hours of time, and ultimately increase your finances.

If you are not very computer literate then there is no need to worry, as these software programs where designed with this in mind.

In fact, property management software is very easy to get started with, and then a breeze to use on a daily basis.

This is mainly due to the user friendly and simple interface, so you can just concentrate on your business and not have to be calling computer support every 5 minutes.

Do credit checks on potential tenants

Another money saving tip for landlords is to always conduct a credit check on potential tenants. This will potentially save you from many problems in the future, in which a tenant stops paying and you end up losing money!

There are many services which you can use to run a credit check, and they will show information such as their history of paying bills and debts on time. If they constantly miss payments then this is a huge red flag, and you should proceed with extreme caution.

Failing to plan for repairs

Many landlords lose their shirt because they fail to plan for repairs. Everything can be running along smoothly, but when a roof repair bill shows up and needs thousands of pounds out of your own pocket, then it becomes more difficult to make a healthy profit.

That’s why it’s a good idea to budget for these kind of things in advance, so you don’t have any nasty surprises down the line. A good rule of thumb to follow is setting aside around 5 to 7 percent of your total rent in order to cover repairs.