The COVID-19 pandemic has created economic uncertainty, leaving many landlords looking for ways to reduce costs and risk. While cutting expenses may seem daunting, strategic moves can maximise returns and withstand market instability.
Consider Refinancing
With mortgages being one of the largest recurring expenses, reviewing current interest rates and refinancing could lead to considerable savings. The lending landscape is constantly shifting, so even if you recently financed, it pays to periodically explore your options.
Leverage Tradesmen Competition
Though construction continues amidst the pandemic, cancelled and delayed projects have left more tradesmen eager for work. Leverage this increased competition by shopping rates and finding the best value professionals to handle maintenance and renovations. While relying on trusted contractors is understandable, putting finances first is wise during lean times.
Explore Tax Incentives
Look into tax incentives like the Home Renovation Credit, Living City Initiative, and income averaging for leased farmland. Analyse rent-to-buy schemes that let tenants test out homeownership. Scrutinise expenditures to maximise write-offs for expenses like property management fees and contractor services. Every deduction lowers taxable revenue, so save receipts for all allowable costs.
Mitigate Rent Delinquency
Rent insurance safeguards income if tenants miss payments, providing replacement funds while pursuing recourse. Some policies also cover eviction legal fees. Additionally, work with a property management firm to handle collections and leasing to reduce lost rent and vacancies. Their expertise removes these burdens while ensuring processes follow regulations.
Maintain Accurate Property Records
Prevent tenant disputes and theft by keeping a detailed inventory of each property’s condition and contents. Require new occupants to sign this documentation to confirm its accuracy at move-in. Regularly update records, especially after maintenance work. Thorough bookkeeping protects assets in the event of damages or missing items.
Property Management Ireland
By getting creative with cost control measures, landlords can stabilise bottom lines during times of economic uncertainty. Focusing on big-ticket items like financing while also leveraging opportunities like contractor availability and tax incentives can help weather the storm. Reach out for personalised guidance on optimising your rental property finances.
For personalised guidance on optimising your rental properties, contact the property management professionals at KPM. Our experts will analyse your current finances and identify cost-saving opportunities specific to your needs. Whether you want to reduce operating expenses, maximise tax incentives, or improve collections, we have the solutions to strengthen your bottom line. Call 01-8442400 today for a free consultation.
