5 multifamily experts share top tips for cutting operational costs
With inflation on the rise, it’s growing tougher for multifamily property owners to keep operating costs down. Learn a few tricks from the pros: Seasoned investors and property managers share their top tips for cutting costs and boosting the bottom line.
Get utilities in check
“Separating utilities for small multifamily properties is really helpful. When utilities aren’t separated, the landlord is billed for everything, and even if you charge tenants a utility fee, it can get messy. There’s an upfront cost to separating utilities, but it’s usually worth it to cut expenses in the future.
"In larger buildings, we usually get an energy audit done. If you can identify ways to improve efficiency, it can lead to a significant cost savings that add up across units.”
— Liz Faircloth, co-founder of The Real Estate InvestHER and The DeRosa Group
Monitor tax increases
“Appeal your taxes. Find a company that will do it for free and take a percentage of the savings, because their interests are now aligned with yours.”
— J Scott, author and partner at Bar Down Investments
“I self-manage, and I see what it does from a net-worth perspective. I used to complain if a tenant was bugging me. Then I realized, ‘Wait, they’ve called me once in three months. I should be glad it’s the one time I get to work on management, rather than paying a manager.’ I have no problem with tenants reaching out to me. I know it doesn’t take a lot of time, and I have the stomach for it.”
“When it comes to new construction, I am always looking to do multiple properties at the same time. Some people would say that’s overwhelming, but I think building one, three or five properties takes the same amount of energy. It also allows investors to reduce cost with suppliers who are willing to provide better pricing due to bulk purchasing."
“We really try to make sure that if there’s a tenant-related issue, if there’s a maintenance request, that we’re curing things fast and we’re responding and getting things done. You have to take care of your residents; it can help reduce costs associated with turnover.”
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