Landlords - What are all your practical Money savers?

Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes

I thought it would be nice to have a collecting point for day to day money/time savers for rentals. Some things I do or have seen on the forum so far:

Remove storm doors.
Advertise rentals on craigslist
Remove or lock outside spigots.
Submeter or RUBS the utilities you pay yourself.
Put in low flow showerheads and put 2 liter soda bottle in toilet tank.
Convert laundry room to pay.
Convert all bulbs to fluorescent.
Replace grass with groundcover, gravel, flowers, etc.
Buy your own pressure washer - $85 at WalMart.
Buy post 1989 buildings (lead).
Advertise & Rent entire duplex to one family (I did this).
Have tenant rents ACH or have them deposit to your account.

PLEASE keep items to one sentence and list each separately!!!

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Rob K.

Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes

13y

A lot of good responses.

I would like to add a few:

When I buy a property and a bedroom door has a hole in it (probably from a fist), Instead of buying a new door, I buy a $6 mirror at HD and cover the hole with it. They make a special tall and narrow mirror (36 x 12 inches?) that is made for a door. Takes two minutes and only eight screws.

I use the same locks over and over and change them from house to house. I bought a key machine off CL for $50 and buy key blanks on the web for 17 cents each. I can make a key as fast as a high school dropout at the hardware store. I keep the original keys and give copies to the tenants. If they lose one, so what? Those locks are going on a different house and I still have the original. I then charge the tenant for the missing key from their security deposit.

I have all water bills mailed to me. I check and make sure the last bill was paid and then send it to the tenant for them to pay. It's in my lease that if they don't pay the water, I will pay it, add a $25 fee, and then give the tenant seven days to reimburse me. I let them know when they move in, if they only have enough money one month to pay the water or the cable - PAY THE WATER.

Unfinished basements require all plugs to be GFCI protected. If they are not protected, I put one in for laundry and remove the rest. They don't need to be hanging out down there anyway.

Garages usually have a bunch of scary looking electrical. Remove it.

Change all plumbing valves to quarter turn ball valves. It will save you money and grief in the long run.

When a property is vacant in the hood: Install motion sensor lights and leave them there. Lock the gate to the backyard. Leave a radio playing. Light on a timer. Install deadbolts that are keyed on both sides. If someone comes in through a window, they won't be leaving out the back door with all of your copper. You can change the locks out when a new tenant moves in.

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Rob K.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
12y
Originally posted by @Michael Herr:
For locks, I buy the same cheapie sets at lowes and a general brand battery powered engraver.

I have a sequential four digit number scribed on the keys and locks.

If you buy the Defiant brand lockset at HD ($30 for a set of two deadbolts and two handle locks with four keys), you won't need an engraver. The keys have a code alreay on them. You can get these locks for cheaper if you buy bulk. It's either five or six sets and the price drops to $24 each.
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Robert Steele
Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
12y
Play the musical chairs lock game. Have one more set than you have doors and rotate them between places. If you need to replace the locks due to malfunction, wear, or for aesthetic reasons swap them out with the kind that you can re-key simply by placing any key in them. Re-key Technology

Send out invoices with statements and self-addressed envelopes the first day of the last week of every month.

Keep your rents at or near market rates.

Manage the property yourself.

Have a working relationship with great, reliable and affordable handymen and contractors.

Install laminated wood flooring instead of carpet. You won't need to replace it nearly as often if ever.

Perform routine maintenance inspections of your properties to nip possibly expensive futures repairs in the bud.

Pick up open-box appliances at crazy discounts when you see them and store them for when you need them. I recently picked up a nice $500 stainless steel microwave for $100 from Best Buy because it was missing some parts. Parts cost me $60 ordered online. A few months later one of my rentals needed a new microwave.

MOST IMPORTANTLY DON'T BE CHEAP. It will cost you more in the long run when you have to replace that cheap piece of crap three times. There is a saying I like; "I can't afford to be cheap."
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
12y
Avoid carpet at all times.

Buy appliances on black friday using store credit card. (24 months no interest @ some stores)

Board up doors and basement windows when the house is empty.

Never use copper. Ever.

Have the tenants take care of the lawn.

All closets get painted one color. walls, trim etc.

Never provide window treatments

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Randy Duncan
SFR Investor · Knoxville, TN · Member since 2013 · 31 posts · 23 votes
12y
Mitch, how do tenants deposit into your bank account if they pay in cash? I would definitely be interested in this
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
12y
@Randy Duncan I open up a different bank account for all properties. Give the tenants deposit slips with the account number preprinted on them. They can either take it in to the teller to deposit or put it in an envelope and drop it in the night deposit box.

If using this method it is a good idea to use a big bank that has a branch on every corner so its convienant for all your tenants.
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Randy Duncan
Involved In Real Estate · Seymour, TN · Member since 2014 · 4 posts · 0 votes
12y
James, now I will ask the obvious. Is there any danger in tenant having account number and a stack of deposit slips? "Oh mrs bank teller, I mistakenly grabbed my deposit slip. I actually meant to make a huge withdrawal".
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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
12y
About the Handyman thing - we use a business called Handyman Matters - they are franchised and have locations all over the country. I am not sure about other locations but here that have a staff of about 15 guys. some are licensed GC, plumbers, electricians, ect. So they can do almost everything and will send whoever is specialized in your problem. They charge $39 to come assess the problem then they go to home depot and buy whatever they need. at the end you pay cost on the HD receipt and then a flat fee per hour for labor.

We like this because we don't have to bother the tenants multiple times to get a problem fixed and they guarantee their work for 1 year. We have used them more than a few times and have always been happy with their work.

http://www.handymanmatters.com/

We also self manage so going on vacation out of the country has been a concern. when we go we give our tenants their number and authorize repairs. So far nothing has ever happened but we trust them enough to know they will fix it if we cant be there
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
12y
Randy, bank policy requires an ID to take out money.

That said I take the secondary precaution of transferring the majority of the money out of the accounts that the tenants have slips for and into a main account that they do not know the act number.

Lastly, I feel like everyone forgets that your full account number is on every check you hand out. People don't think twice about writing a check but would never tell you what their bank account number is.
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Steve Babiak
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
12y
@Randy Duncan if you are now a landlord and accept checks from tenants, the tenant is able to view the reverse side of the check image where your endorsement and bank account and bank information will be present.
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Randy Duncan
Involved In Real Estate · Seymour, TN · Member since 2014 · 4 posts · 0 votes
12y
Originally posted by @James Wise:
@Randy Duncan I open up a different bank account for all properties. Give the tenants deposit slips with the account number preprinted on them. They can either take it in to the teller to deposit or put it in an envelope and drop it in the night deposit box.
If using this method it is a good idea to use a big bank that has a branch on every corner so its convienant for all your tenants.
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Randy Duncan
Involved In Real Estate · Seymour, TN · Member since 2014 · 4 posts · 0 votes
12y
James/Steve, good points. Sort of like handing your credit card or debit card to a waiter and watching them go back in the back of the restaurant. I have just never even considered or thought of having deposit slips for tenants, but may look into that. Good suggestion
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