5 Ways to Lower Your Income Property Operating Costs.
1. Hire a manager – property management can require a lot of time and commitment. Hiring a property manager can help you devote time to growing your business or just by taking a less hands on approach. Here’s why we think hiring a property manager is strategic:
Setting the right rental rates – often a manager will offer to conduct a market study to maximize your income and maintain a low vacancy rate.
Collect payments on time – streamline your system and have someone else effectively collect rent and maintain on-time payments.
Managing tenants – they will handle routine and emergency maintenance, inspections and any conflict resolution.
Geographic independence – you can live anywhere and have your property manager take care of the day-to-day location driven tasks.
2. Upgrade your water heater – Water heating can account for up to 12% of a utility bill (biggest component after space heating and cooling). Because of this, it’s important to maximize your systems efficiency. Couple key steps:
Lower the temperature on your water heater to 120°F; for every 10ºF reduction in temperature, you can save from 3%–5% on your water heating costs.
Install low-flow fixtures. For a small investment, you can achieve water savings of 25%–60%.
Install heat traps on your water heater tank. You could save $15–$30 on your water heating bill. You may need a professional to help you install them on your existing tank
Insulate your hot-water storage tank
Consider buying a new maximum energy saving water heater
3. Install double pane windows – double paned windows can save energy up to 24% in cold climate winters and 18% in hot climates during the summers.
Check out this video compary double pane vs. triple pane windows: https://www.youtube.com/watch?v=Em0Dypt-Eec
4. Think about drought resistant landscaping – many states in the US are experiencing some level of drought, so in addition to being environmentally responsible, implanting drought resistant landscaping can save on your water bill! Our top ideas for drought resistant landscaping:
Replace your grass with artificial grass
Replace your grass with gravel or stone
Use succulents and cacti species
Choose perennial flowers over annuals
5. Use the RUBS program – RUBS: (Ratio Utility Billing System) “A Ratio Utility Billing System allocates the property’s actual utility bill to the residents based on an occupant factor, square footage factor, or a combination of both.”
See our previous blog on the RUBS program here: https://www.lukejonesre.com/single-post/2017/11/15/What-is-the-RUBS-Program