How to Reduce Your Rental Property Expense

Rental Property can be a cash cow if you know how to cut expense. Tenants don't care what you are spending on their apartments but you should. The following list will allow you to reduce your rental property expenses and increase your income.

1. Heating - If you are responsible for the heating in a rental property is very important to keep a locked clear box over each thermostat that only you have the key to. I have seen so many tenats turn up the heat with the windows and door open. Also make sure that the basement or other location of the furnaces are kept locked as well.

2. Electric - The best you can due to lower expenses with the electric is monitor the electric meters. Putting the new 15 year expensive bulbs does not work since the tenants will take them when they leave, save your money instead.

3. Water - Almost all municipalities make the owner of the building put the water in their own name. There is not much you can do about that but make sure there are no leaks is each building. The tenants many times do not even report the leaks so you will have to keep an eye on the building and watch your water bill for unusually high charges.

4. Repairs - Unless you are handy yourself, repair bills are going to eat up a large percentage of your profits. The way to save money is to higher a handyman that is desperate for work and gets paid a flat fee per week no mater what the job is. You will need at least 15-20 buildings before considering this fee arangement so if you have less buidings look for a handyman that works on the side of his main job. They often charge less and you know they are responsible since they already have a job.

5. Eviction Fees - Evicting a tenant gets costly in terms of court fees and lost rent. The alternative is to pay the tenant to leave about half of what the court fees would add up to. I know it sound crazy but this is a smart business decision since the tenant often needs the money and you can get him out in a few days not 1-2 months as in normal eviction processes. This was taught to me by a very experienced and knowledgeable real estate investor and it does work by saving you money and aggravation.

In conclusion, having a well thought out plan to reduce fees will save you lots of money and improving the cash flow on each rental property.