Top 7 Ways You Can Save Money While Managing Your Property

Jayde Ferguson

If you are the owner of a commercial building or own several pieces of real estate properties, you know that costs can rise over time. If you are like most landlords, your goal will be to lower these costs by changing the way you are currently doing things to avoid ending up in a financial mess.

With power bills on the rise, maintenance request forms flowing in and skipped lease payments; it’s becoming even more of a priority for landlords to take control over their commercial property. There are a variety of ways to save money; here are a few you can implement today.

1 - Attract Better Tenants

One of the ways that a commercial landlord can save money is by leasing to higher quality tenants. If you have been a landlord for any period of time, you’ll know that some tenants are much more reliable than others. Those tenants that are untrustworthy can often cost you a lot of money, not to mention stress, over time.

Things like skipped lease payments, damage to property and even court costs if you have to sue can all be very expensive. If you lease to tenants with a solid rental history and consistent income however, these costs will be minimal - if you have to pay them at all.

2 - Install Solar Panels

Power bills have been consistently on the rise over the last few years and it doesn’t look like it’s going to ease down anytime soon. Easily the highest costs that a landlord will have to deal with are the cost of electricity and so many commercial property owners are turning to the value of solar panels.

By installing the right solar panels for your property, you could save approximately $20,000 on average over the next 20 years on your electricity bills. Considering the average price of solar panel is about $10,000 for a medium sized system, this could be a great investment for your commercial building. By making the switch to solar power, the government rewards your savings on electricity with incentives.


3 - Do an Energy Audit

In addition to this; energy audits are an effective way to further reduce those dreaded power bills. Commercial properties are responsible for using more than 40% of all energy use. Of that energy, up to 30 percent is wasted energy.

An energy audit of your building can help you get to the bottom of all this wasted energy. There are many ways to do this by following online resources for tips, or speaking with your electric company on the best ways to go about it.

If you have a bigger commercial property, you might want to hire a consultant to help you with the process. They are experts in noticing areas that may need more attention when it comes to energy use and can also suggest improvements to lower your energy costs.

4 - Pay Attention to Your Utility Bills

Another way that you can save money on your utility bills is to start paying attention to your utility bills. In many cases you could be losing money without even realising it because you aren't taking the time to look at what you spend money on.

For instance, look at your water bill for the past year. Is it always the same, or close to? If not, there could be an issue, such as a small, easy to repair leak, that could be costing a lot of money. If you know what you typically spend on utility bills, however, you can make a quick move if things seem unusual.

5 - Do Simple Repairs on Your Own

You will also find that you can save a lot of money by performing simple repairs on your own or even by having a maintenance person on staff. Having someone available to take care of all minor repairs will certainly save money. You might pay someone $15 - $20 an hour to do all of your maintenance. This is a big saving when you consider the average cost 
to hire a plumber for a clogged drain has a significant price tag attached to it. Of course, if more serious things occur, it is best to seek out a professional.

6 - Consider Commercial Real Estate Software

You can also save money by buying commercial real estate software that will help in the day to day management of your property. Some of the ways this software can help save money include the ability to go paperless, eliminate human error, automate time consuming tasks and reduce workflow. This software can also help to raise the efficiency of your management team and will help to keep the tenants happy. All these things will help to save money over time.

7 - Only Use Utilities When Needed

Finally, you will want to make sure that you are only using your utilities when needed. There is no reason, for instance, to leave the lights on in an office space 24/7 when no one is occupying that space. Encourage your tenants to take responsibility for their own area. Also, make them aware of the wasted energy and money that is seeping out of the building. This can do a lot of good over time. You should also turn off the electricity and HVAC system on weekends or long holidays to conserve and save.

These are only a few of the many things a landlord can do when it comes to saving money in a commercial building. You can try all of them, or just a few. Whatever you choose to do, make sure to do something as even the smallest steps, like turning off the lights at night or being aware when the pool pump is on, can save about two percent off of your electrical bills. By making these changes now, you will see a significant savings in the future. 


Author Bio

This article is written with assistance from Aidan Jenkins, Managing Director of Infinite Energy, business electricity retailers in WA. Connect with Aidan on Google+ or LinkedIn.