Here are some top tips that just might help you save money in your landlord’s business operations:
- allocate some serious time to looking for allowances. It perhaps has to be admitted that these are not as commonplace as they once were, however, there may still be opportunities from local government in areas such as energy saving initiatives or derelict property renovation etc.;
- regularly review your utility service providers. The tariffs for things such as gas, electricity and telecommunications are, unfortunately, occasionally chaotic. Even so, they are regularly changing and you may find that there are now much more cost-effective options out there in these areas than there were the last time you looked;
- the same logic might apply in terms of a landlords insurance review. A policy you purchased a year ago might now not look quite as cutting edge as other options in the marketplace;
- do the sums relating to property management companies. True, they will take a percentage of your rent but they may have a access to lower-cost services for things such as cleaning and maintenance than you do;
- if you haven’t already done so, switch from cheques and cash-based rent dealings with your tenants to e-banking type transactions. Using cheques involves paperwork, the possibility of a cheque being lost before it reaches your bank, delays in clearance and of course, the occasional bounce causing you grief. Cash is certainly risky in terms of loss, theft, discrepancies and disputes. The majority of tenants today should have bank accounts and it will be typically lower cost and more efficient for you to ask them to pay the rent through that method;
- think twice about paying for contents insurance if you are letting property on an unfurnished basis. You may need to be clear that any items that you regard as being fixtures and fittings are, in fact, fully covered on your buildings policy, however, overall the savings may be significant;
- look at trade discount opportunities in DIY outlets for decorating products etc. At one time reserved strictly for the building trade, these are now sometimes more liberally interpreted as applying to anyone purchasing significant volumes on a regular basis. If you have a number of properties and are regularly improving, maintaining and decorating them, you may be eligible for some discounts of this type and it might save you some significant cash.
If you are not already doing so, you may wish to think carefully about selecting a good accountant.
Depending upon the size and nature of your business registration, one of the best ways of increasing your allowances and bringing down the net impact of cost in your business, is to draw upon expert services of that type!