Below is a researched and compiled list of ideas to reduce expenses at properties.
Compare the costs/benefits before executing any ideas below.
- Renegotiate maintenance service contracts (i.e. landscaping and pools)
- Protest property taxes
- Appeal utilities and/or negotiate lower rates with utilities companies
- Requote Insurance
- Renegotiate management fees
- Renegotiate trash service
- Renegotiate pest control
- Implement pest control unit inspections
- Implement seperate meters or tennt pays water
- Master Insurance Policy (via 3rd property manaegment company)
- Obtain an umbrella insurance policy that covers multiple properties
- Implement efficient windows
- Implement partial in-house management to reduce management fee
- Reduce marketing budget
- Implement bonuses for leasing agents
- Improve tenant screening
- Service HVAC regularly to extend its durability
- Hire HVAC Certified Maintenance staff
- Optimize HVAC system
- Implement water conservation strategies – i.e. low flow faucets, toilets
- In conjunction with #12, qualify for Agency Loan Green Initiatives for lower interest rates
- Research grant programs so to replace windows, HVAC, etc.
- Check that toilet valves function properly
- Install solar panels for ABP and resell utilities
- Install solar panels with accelerated depreciation
- Install energy efficient, solar screens & window shades, to reduce electric bill (& on RUBS properties)
- Install solar or reflective roofing
- Install low maintenance landscaping i.e. eliminate grass with decorative granite, low-water utilizing plants, replace grass under trees with stones, etc.
- Install low wattage light bulbs
- Replace outdated light fixtures
- Install water conserving water fixtures
- Buy frequently used supplies in bulk
- Monitor repairs i.e. request maintenance employees account for materials replaced, etc.
- Reduce ambient temperatures in common areas, during the winter months; and vice versa.
- Seek commercial Wifi tstats on ABP properties, and fix the temperature
- Overall annual preventative maintenance
- Utilize better software tools
- Implement a more efficient pre-leasing and make ready system
- Implement Tenant Deposit Insurance program
- Consider conducting a property energy-efficiency study/survey
- In conjunction with #40, hire a professional, who has specialized knowledge, to handle the survey/study.
If you’re interested in learning more on this topic, click here.
If you are interested in future investment opportunities, click here.
By Kelsie Mans-Ray
KMR Multifamily Acquisitions / Syndicator
NOTE: This information is of a general, educational nature and may not be construed as tax, financial, or legal advice pertaining to a specific offering, exemption or situation.
