You decided to invest in multifamily rental properties as a primary or secondary source of income. As you know, multiple expenses associated with the upkeep of the property can eat into your profit margin. Although paying utilities is one of the highest costs of management for many property owners, you can take several steps to reduce your expenses in this area to improve your overall profit.
Replace Old Lighting and Appliances for More Energy Efficient Ones
Although the older light fixtures installed throughout your multifamily property might still provide plenty of light, they can be costly to maintain. Making an initial investment in LED lighting will cost you some money upfront but will pay off in the long run with lower monthly utility bills.
This concept is also true for appliances such as wash machines, dryers, dishwashers, and refrigerators. You are probably better off replacing a unit if it’s more than 10 years old to increase energy efficiency. When shopping for new appliances, be sure to look for labels indicating that the product meets or exceeds energy efficiency levels set by the federal government.
Change the Air Filter on Heating and Cooling Units Quarterly
Providing adequate heat in the winter and cool air in the summer is essential to ensure that the tenants of your multifamily property remain safe and comfortable. When it comes to reducing the cost of operation, many people overlook one of the simplest tips of all which is to keep the air filter clean. Cleaning it monthly and changing it every three months allows all heating and cooling units to operate more efficiently.
Install Programmable Thermostats in Common Areas
While you can’t tell tenants how cool or warm to keep their living areas, you have the legal right to set the temperature in common areas so long as it’s comfortable and livable. Installing a programmable thermostat allows you to automatically reduce the temperature during hours when few people use the area.
Would you like more tips on how to run a profitable multifamily property? Schedule a consultation with Rotay Capital Finance today.