With 2017 coming and going the time to review the past year’s accounting and profits have arrived for thousands of landlords and property managers. Landlords and Property managers will be calculating their balance sheets and analyzing their banking records to look at their revenue and to calculate their profits. Many landlords and property managers will look to see how they can improve their profits in 2018 and will take steps to increase the amount of revenue they collect every month.
Many landlords and property managers’ main strategy to increase their profits is to raise their tenants’ rent. While incremental increases in rent can help landlords earn more revenue on their rental units, there are other ways to increase profits besides considerably raising rent which can come with the risk of leading to rental unit vacancies.
One of the simplest ways for landlords to increase their profits in 2018 is to save money! Intelligent improvements which may require a short-term investment of time and money can lead to long-term savings which can increase profits well beyond 2018.
Reducing the Water Bill – If your like thousands of landlords that include the cost of water in rent then you should be analyzing your rental units’ water usage. It is important that you fix leaks right away and install water saving shower and toilet fixtures.
Reduce Electricity Costs – Like water, electricity usage can cost landlords thousands of dollars in lost profits a year. Installing energy saving lights and improving insulation can cut electricity cost considerably. Furthermore, even if your tenants are responsible for paying their utilities if you own buildings with multiple rental units you can save on the cost of lighting common areas by switching to energy efficient bulbs.
Outsourcing Jobs- The larger and more units your rental property has the more maintenance it requires such as cleaning staff, porters, doormen, and supers. Outsourcing some of these jobs to staffing companies can help you save money, and the time it takes to vet staff by turning over the responsibility to someone else.
Upgrading your property management system- Managing rental properties is a very time consuming and complicated job. A small mistake or missed opportunity can cost thousands of dollars in lost revenue. Advanced property management software like RISSOFT property management that includes countless money saving features like general accounting, document management and energy tracking without expensive licensing fees can help landlords, and property managers make 2018 their most profitable year.
2018 has already begun, so landlords and property managers need to take steps right now to save money or miss out on a chance to increase their yearly profit.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.