Owning rental property brings in money, but it also costs money to keep it going. Property taxes rise and rental property loans can be expensive. Things break. A bad tenant can cost you more than a few months’ rent. You don’t have to cut corners to save money, but you do need to be smart about how you spend.
You don’t need fancy tools or big upgrades to start saving. Small changes in how you manage your money can add up fast, especially if you own more than one property or plan to grow. In this article, we will go over several strategies to help you save money as a landlord.
1 – Screen tenants carefully
One of the best ways to save money as a landlord is to screen tenants carefully. A good tenant pays on time, treats the property with respect, and stays longer. A bad tenant can cost you in late rent, property damage, and legal fees. Taking a bit more time up front can save you thousands later.
Don’t rely on gut feeling alone. Use background checks, credit reports, and references. Make sure their income is steady. Ask past landlords how they left the property and if they caused trouble. It’s better to leave a unit empty for another week than to rush in someone who isn’t a good fit.
Even if you hire help, you should still be involved in choosing who rents your property. If you’re working with a company, find one that takes tenant screening seriously. For example, reliable property management for Toronto condos often includes a full background check and a review of rental history. That’s the kind of attention to detail you need.
2 – Handle your own repairs
Hiring someone for every small repair adds up fast. Many fixes don’t need a contractor. If you can patch a hole, replace a faucet, or fix a running toilet, you’ll save money over time. You don’t need to be an expert. You just need to know the basics and be willing to learn.
There are thousands of videos online that show step-by-step repairs for common problems. With a few tools and a little patience, you can handle a lot on your own. Keep a basic set of supplies on hand so you’re not running to the store every time something breaks.
3 – Appeal property taxes
Property taxes are one of your biggest expenses, but many landlords never question the amount they’re charged. In some cases, your property may be assessed at a higher value than it should be. That means you’re paying more in taxes than necessary. You don’t have to accept the number as final. You can appeal it.
Start by reviewing your tax assessment carefully. Look at how your property was valued and compare it to similar properties in the area. If the numbers seem off, contact your local tax office and ask about the appeal process. Each area is different, but most allow you to challenge the value during a set period each year.
