Find out why you should reduce your property management expenses and how you can do it. 

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Investing in property can be a rewarding experience and a profitable one too! But owning a property also comes with a lot of expenses which can be daunting especially if you’re a first-time investor.

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Reducing your property management expenses can have a significant impact on your bottom line. Not only can it increase your profit margins, but it can also free up funds for other investments or improvements to your properties.

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With interest rates and the cost of living hitting all-time highs, there’s no better time to evaluate your expenses, so in this article, we’ll discuss the reasons why you should reduce your property management expenses and some of the ways you can do it. 

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Why? Increase Your Profits

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The most obvious and main reason to reduce your property management expenses is to increase your profit margin. Management expenses can add up quickly, and if they are not controlled, they can eat into your pocket.  

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By reducing these expenses, you can increase your earnings and have more money available to invest in other properties or perhaps even to make improvements to the ones you already own.

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Check out these 5 Investment Property Hacks you need to know!

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How? Avoid using an Agency

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As a property owner, you may be considering hiring an agency to take care of the day-to-day operations of your rental property. While this may seem like a convenient option, there are several reasons why you may want to reconsider using a traditional agent to manage your property.

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Cost: One of the biggest reasons to avoid using a property agent is the cost. These agents typically charge a percentage of the monthly rent as their fee, which can add up to a significant amount over time. 

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Additionally, they may also charge additional high fees for services such as leasing, inspections, and maintenance which are all things that can actually be easily taken care of yourself or through another service provider when you specifically need them. 

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Interested to see how much you could be saving? Take a look at the Savings Calculator. 

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Lack of control: When you hire a property management agent, you are essentially giving control of your property to someone else. This means that you may not have a say in the day-to-day of the property and this lack of control can be frustrating and may not align with your own goals for the property.

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Communication issues: Communication is key when it comes to managing a property, but this can be a problem when working with an agent. Agents may not be available to answer your questions or address concerns in a timely manner as they have a large portfolio of clients leading to a lack of communication and a sense of disconnect between you, the tenant and the property.

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Some examples from our customers who have made the switch from their agent:

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“What a great platform!! The RentBetter team have made switching from a  property manager to privately managing our properties so easy. They are always very helpful and respond to any queries immediately. All the forms and tools are easy to use on their platform. I have started with one property and thinking about converting all with them!” - Kenny B.

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“Really great value. I used to pay several thousand a year for someone to manage my property and now I'm paying a small fee each month for RentBetter to deliver the same, if not better, value. I thought there was a catch, but everything works and they have been professional with me and my tenant. It seems wrong for people to rent their property any other way. Thank you, RentBetter team, keep up the good work.” - Barbara B.

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“I used to use other companies with agents, but they didn't take very good care of my property, so I started using the RentBetter platform and realised how easy it is to manage my own property. It also saved me a lot of money which I can now invest in other businesses.” - David B.

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As an owner who is sick of real estate agents, their promises and their lack of action, I turned to RentBetter in desperation with low expectations. Which they far exceeded. Their customer service is solid, but I have not needed it much. The platform is easy to navigate. It is affordable and our tenants had no issues as well. 1 year in, going through the process of extending the current tenants' leases and again finding it so easy that I thought RentBetter deserved a solid review. Sick of agents' attitudes and fees for doing nothing? Give this a shot! - Adam C.

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I have divorced conventional methods of engaging Real Estate Agents ever since I learnt about Rent Better services and I have been a proud subscriber of RentBetter for more than 5 years now, managing 4 investment properties. I have also sold a couple of properties using RentBetter services too. - Ed N.

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Ready to self-manage your property? This kit will guide you through the process of saying ‘bye’ to your agent (and agent fees). Download the switch from your agent kit.

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How? Keep on top of Maintenance and Repairs

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Regular maintenance can prevent costly repairs down the road and save you a tonne of money. By keeping up with the maintenance on your property, you can save money on repairs and avoid costly vacancies.

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Although it can be tempting to put off fixing an issue, the longer you leave it, the bigger the problem will be later on - it's better to address these things quickly and get the issue resolved.

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If you’ve not yet purchased your property, the best thing you can do before you purchase a property is to do your due diligence since you will be responsible for any long-term repairs and fixtures and fittings. The cost of repairs may be higher for older properties due to the increased number of issues they may have.

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How? Tax Deductions

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Take advantage of the tax deductions available for rental property expenses, including mortgage interest, property taxes, and maintenance costs.

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If you’d like to find out more back what you can claim back on tax for your rental property, check out our top 5 tax tips for landlords.

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It’s also worth mentioning completing a Tax Depreciation Schedule is a worthwhile investment.

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A depreciation schedule is a document that contains information about your building and forecasts how certain components, such as fixtures, fittings, and common areas, will lose value over time.

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It essentially outlines the exact amount of depreciation tax deductions that you are entitled to claim on your rental property investment. The depreciation schedule will be used by your accountant to file a claim with the Australian Taxation Office on your behalf. 

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Use the Technology Available.

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As a property owner and investor, you have the skills and knowledge to manage your property, and with the help of technology, you can do it more efficiently! It may require a little more time and effort to start with as you’re learning but it will save you money in the long run.

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RentBetter is a great property management platform that streamlines, automates, and makes running a property as efficient as possible by organising the lease, collecting rent, maintaining the property, and managing tenant relations.

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The platform will also help you reduce your advertising costs and help you throughout your tenant selection process to ensure you choose tenants that pay their rent one time and take good care of your property.

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Before signing your lease, you should run a comprehensive tenancy check. Find out more here. 

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You can make your property investment venture more efficient and profitable by automating your processes. Check out the video below from RentBetter’s founder and CEO, Jeremy on why you should consider self-managing your property and get started today.

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Should you self-manage your property and how exactly can you get started? Find out in this video.

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