As a landlord, you could be responsible for some of the running costs of the buildings you rent out. If you own a block of flats, for instance, it could be down to you to pay the bills for the upkeep of a lift, and to keep entrance halls and stairs clean and safe. The same could apply if the building you own is let out as offices with several tenants renting them. There can also be external costs, such as repairs to a roof or having to lay a new drive. These are all things that eat into your profits, but with so many of these matters being a legal responsibility, you have no choice but to spend on them.
There are ways to keep these expenses lower though, and here are a few ideas that might help.
If you maintain your buildings rather than wait until there is a problem, you can save a fortune. For instance, cleaning the guttering every year can keep them free of blockages which can prevent water damage to your walls, both internally and externally. You may think your insurance would cover these things, but no policy will pay out if the damage has been caused by your neglect. Keep your properties in good condition and you could save yourself a lot of hassle, as well as money.
Energy costs are not cheap, and they continue to get worse every year. If you are responsible for anything such as communal lighting, car park lighting or something similar, there are things you can do to keep this expense as low as possible.
You need to compare commercial electricity prices to ensure you are getting the best deal. You can use a site like Utility Bidder to ensure you are not paying more than you need to for your energy costs. This will also make the switch from one supplier to another simple and stress-free.
You should also consider installing LED lights. They are cheaper to run and need replacing less often. They are also more environmentally friendly at disposal.
Check Out Your Finance Costs
Not many people are rich enough to pay cash for a building, and most landlords have a mortgage or loan to help them with the purchase. The interest you have to pay on this is as much a running cost as anything else, and you need to ensure that you are not paying a higher rate than you need to. Mortgages are a complex area, and it is often best to seek the help of an independent financial advisor rather than just take the first deal you come across. They are obligated under UK law to find you the best mortgage or loan for your needs, and failure to do so can cause them to lose their licence.
Whether the building your own is residential or a commercial building, you still need to keep the costs low or you could find that the expenses are more than the rental income, and that is not an ideal situation.
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