Gas prices are at a record high, and the expectation is that they're unlikely to decrease anytime shortly. The cost of managing a rental property could be quite high. For landlords to earn profits and turn an income stream supplementary to earning a decent living wage, it takes lots of hard work, perseverance, and knowledge. The rising cost of gas cuts into the profits and makes it harder for landlords to pay their financial obligation.
What do rising gas prices translate to landlords? In the end, you should expect costs to rise for the items and services that you require to run your rental company.
However, the most obvious consequence of rising gas prices is the increased price of filling your tank. Real estate professionals and landlords have traditionally spent hours and miles in their cars. It's been reported that real estate agents are traveling over 3,000 miles per year.
However, they can drive as much as 20k miles per year. Landlords perform similar tasks as realtors do, for example, showing rental properties -- and in my personal experience as a landlord; I'm able to say that my car was an office second to none.
However, it's not the only thing that's affected by the price, for instance:
- Appliances and supplies will be more expensive because they will cost the distributors and suppliers more, and they'll be able to pass these cost increases to the customer.
- Specifically, tickets to travel, airline tickets, and rental cars will be more expensive.
- Maintenance costs ranging from buying gasoline for lawnmowers to the cost of hiring a professional tenant can anticipate that maintenance will be more costly.
What are how LANDLORDS can help reduce rising gas prices?
- Accept rent payments online and cash alternative options via electronic
- Conduct virtual inspections and demonstrations
- Comparison of prices and ordering supplies to be delivered
- Key management in-house
- Market research conducted online
- Participate in expos, conferences, and networking events on the internet.
Accept online rent payments as well as electronic cash alternatives
There is no need to write those deposit slips or take a trip to the bank every when a tenant needs to make an installment. Make the switch to online payment processing so that tenants can pay rent electronically (ACH) and credit card. The money will be deposited automatically into accounts at your banks.
In either situation, it is possible to eliminate the manual process of making rent payments and those drive into your banks. The tenant can see their rent reflected in their tenant portal without waiting for someone to input the data in the program manually. This means you've reduced time and effort by not having to enter the data manually.
Not only do you get the time savings, but tenants also save money on money orders since the Cash Payment Network fee is generally a cheaper alternative. Conduct virtual showings and insights
If you don't manage multi-unit properties where on-site personnel are close to the vacant property, you'll likely be traveling frequently to an empty rental to show it off to potential tenants. Consider the numerous times per year that you drive to conduct rental inspections, and you've made a profit in the rising cost of gas.
Flexibility
Through virtual tours and inspections, you'll be more flexible in the timing of your current and prospective tenants because distance and traffic are no longer a problem.
Time savings
The time spent commuting between rental show events and inspections is time that cannot be replaced. Time is money, as they say. Therefore you can invest those time into building your portfolio, getting caught up on work, or simply taking an opportunity to relax.
Cost savings
When gas prices rise every time, you can hang the keys and turn on technologies to benefit you will put savings for your wallet. It's not just the price of gas you'll save, but the total cost of maintenance wear and tear, and perhaps even insurance. Speak to your car insurance provider if your travel is decreasing since you could be eligible for lower rates for insurance based on your typical mileage.
Integrated with software
Various property management software choices have been partnered with virtual inspectors such as inspectors. You can find tools for tenants to perform self-inspections, reports, and maintenance information that can be integrated with your program, along with other amazing features. Contact your property management software provider to inquire about the inspection integrations they offer.
Price shop, and order supplies for delivery
From office equipment to supplies and appliances, All of it is accessible on the internet, providing smart landlords with the right information for comparison shopping.
Find the lowest price, and then choose a free or low delivery charge package. Even when there is a delivery cost, you can quickly determine if it is lower than the total time and transportation costs.
In-house the key management
From a turnover of rental properties to renters losing keys, the drive through the store to purchase keys copied seems never to end. Instead, it would help if you considered having your key management done inside and saving yourself the cost of gas and time. And I do not know about you as a former property manager.
I had to wait to have keys felt like a long time, especially as I had many other things to do during the day. A well-designed key management system can reduce time and money, and stress.
Online market research
I would travel all over the city to conduct market research and look at apartments and manufactured home communities several times per year to get an idea of what our competitors were offering regarding landscaping, amenities, parking, and visual marketing.
Nowadays, you can locate information on the internet with an ounce of search expertise. Look through review websites and image search results to find photos and details from tenants rather than just relying on marketing images.
Attend expos, conferences, and networking events online
There's nothing better than attending an excellent rental and real estate conference to learn what's happening in the rental market and network with fellow dental specialists. However, as gas prices are rising as we speak, we're already seeing the prices of tickets to airlines and rental vehicles rising also.
If you have to drive as prices rise, Try to streamline your driving, choosing the most effective routes. You can also look for the best prices and discounts at the pump and other tips to save fuel. Be aware that travel costs can be tax-deductible, and you should consult your accountant on the best ways to document your journeys and expenses to maximize benefit.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
