Stop Overspending on Maintenance: 5 Tips to Reduce Costs

Preserving your rental property investment means following through on routine property maintenance. And it can get expensive when you consider all the aspects of your property that require ongoing care, cleaning, or repairs. Because property maintenance is a necessary cost, you might assume you’re stuck with those plumbing, HVAC, and lawn care bills.

However, you could still be overspending in these areas and not realize it. Keep reading and explore these tips for streamlining your rental property maintenance expenses and maybe even saving a buck or two.

1. Recognize the Most Common Areas for Overspending

The first step in reducing your costs of property maintenance is to recognize and be aware of your expenses in the first place. Use expense reporting features in your management software and start reviewing your monthly costs. And be mindful of overspending in these common areas:

• Appliance Repairs
• Maintenance Contractors
• Inspections
• Move-in/Move-out Maintenance

2. Plan Ahead and Save on Maintenance

The most expensive maintenance efforts usually involve major repairs or unit replacements. For example, replacing an air conditioning unit entirely can cost thousands, which can be even harder to deal with if it’s a surprise unit failure. Avoid tanking your cash flow and maintenance budget by instead anticipating these major component replacements and planning ahead. It’s estimated that your rental property maintenance will cost, on average, 1% of the property’s value annually. So, you can start setting aside funds every month to build up a reserve to contend with big-ticket repairs and emergency replacements.

3. Inspections Can Help Prioritize Maintenance Efforts

If you feel like you’re constantly chasing repairs and spending money, start getting ahead of your property maintenance with regular inspections. An inspector can come in and review every feature, component, and unit and help you prioritize which might need to be repaired or replaced soon. Having an inspection report means having a complete snapshot of your rental property’s condition. And being able to predict repairs and replacements ahead of time means having the time to negotiate the best rates in line with your budget and timeline.

4. Buy New and Replace

When your tenants submit their third or more repair requests for the same appliance, feature, or unit, it’s time to replace it. Investing in a new refrigerator, a new toilet, or a new water heater is going to cost less than ongoing repairs, food loss, or water damage. Recognize those rental property repairs early and avoid overspending on constant repair or potential property damage.

5. Negotiate with Regular Contracting Partners

Revisit your roster of contractor partners and consider building strategic relationships with them. Because you’re routinely using their services, there’s an opportunity to renegotiate rates and pricing. They’ll appreciate the continuous work, and you’ll enjoy discounted costs. But spend the time first auditing your current list of contractors and weeding out those who may be over-charging and underdelivering. Create partnerships with great-fit contractors.

Rental property maintenance is a necessary step and expense for preserving your investment and property’s condition. But you certainly don’t have to overspend. Consider these tips for streamlining your costs. And know you can always stay ahead of overspending when you work with a rental property management partner like PMI JCM Realty Group! Our team can take the reins and manage all your maintenance processes, repair requests, and contractor negotiations. Because we manage the operations on your behalf, we handle all the scheduling and can keep a tight watch over your ongoing maintenance expenses. Contact us and stop overspending on maintenance today!

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