Need Help with your property?
Need Help with your property?

    We would love to send you details of new properties and products that may be of interest to you
    Please doI'd Rather Not

    • Call Us: +44 161 834 8486
    • Email Us:
    Back To Property Blogs

    How Can I Save Money on my Investment Property?

    Property has always been seen as an excellent investment thanks to the consistent rates of return that it offers, as well as the enduring popularity and need for homes, offices, and other physical spaces. But of course, no matter how successful your property investment is, there may always be opportunities to save money.

    Any money that you can save as a part of your investment only counts towards a better return for you, so it really makes sense to understand if there are any opportunities that you are currently missing.

    In this article, we will take a look at some of the ways that you could potentially save money on your property investment. Whether you have a portfolio of properties or you are just starting out with your first buy-to-let investment there are always possibilities for cutting down costs and saving more money.

    Check The Mortgage

    There is no doubt that the largest single expense on any property investment is the mortgage. As such, it makes complete sense that you should want to ensure that you have the best deal. If you manage a number of properties it can be easy to forget about mortgage deals and when you can start a new one. 

    Interest rates are rising, which means it could be expensive to be sitting on a variable rate at the moment. Locking in for a short-term deal could make the most sense and actually save you a considerable amount of money as we wait for fluctuations in the base rate to calm down and reduce. Our team will happily arrange for you to meet with our own independent mortgage adviser, for a no obligation consultation outlining the options available to you. Please feel free to get in touch if this is a service you woud find useful.

    Spend Money To Save Money

    Ongoing maintenance of a property is undoubtedly an important expense that all landlords have to take into account. Interestingly however, in many cases, landlords would be better off putting more into their initial investment into a property rather than having to pay out for maintenance. 

    In a simple example, if a tenant is having problems with the boiler and you have had to call out a plumber for repairs, it can end up costing you significantly more to repair the damage over and over, rather than paying out once for a replacement. 

    “In truth, investing in the properties can be extremely useful from a tax perspective,” says Chris Plumridge, Director at Wellden Turnbull “not only in terms of renovating and refreshing the property but also looking into the possibility of extending it. Of course, it is important to take into account the maximum rental yield you are going to get from a property in the area.”

    Get A Better Deal On Your Insurance

    It is a legal requirement for anyone acting as a landlord to have landlord insurance on their properties. You might assume, then, that this is an unavoidable expense and one that you simply have to pay if you are going to invest in property. And yes, that is true, but it doesn’t mean that all insurance is created equal.

    It may be the case that when you first got your landlord insurance you went with a provider you know well, or you wanted simplicity and went for the easiest option available. But some landlord insurance policies are far more expensive than others. It makes a lot of sense to look into your insurance deal and compare it to others that are available. 

    Options such as increasing the excess on the policy or looking into the specifics of what each policy offers can help you to cut down on your costs.

    Minimising Utility Costs

    As a landlord there are actually several steps that you can take to reduce your monthly utility costs and make your investment property more energy-efficient:

    • Invest in energy-efficient upgrades – a great idea for landlords to install energy-efficient improvements in their properties. Consider upgrading to more energy-efficient appliances and fixtures, such as low-flow toilets and LED lighting. These upgrades can save you money on utility bills over time and make your property more attractive to prospective tenants.
    • Set up separate utility meters for each rental unit – whilst the vast majority of flats and houses have their own individual utility meter, if your investment property is a more recently converted dwelling and now contains several units, you would be wise to ensure that a utility meter is in place for each one. This can help you avoid paying for your tenants’ utility usage and instead pass the cost onto them. This can also encourage tenants to be more mindful of their utility usage and help reduce monthly expenses.
    • Consider alternative energy sources – you may be able to take advantage of alternative energy sources, such as solar panels or heat pumps, to power your investment property. Those with leasehold properties or apartments within a residential development will need to approach the management company or freeholder to see if these options are possible, or have been previously explored. While these options may require a significant upfront investment, they can provide long-term cost savings and may also make your property more attractive to environmentally-conscious tenants.

    Reduce Tax On Your Rental Income

    There are actually many ways that you can reduce tax on your rental income, and it can actually make the most sense to work with an accountant who has experience providing advice and guidance to those with a property portfolio of a similar size to yours. They will be able to offer the most relevant and practical advice in your situation.
    Some useful ideas include forming a limited company rather than operating as an individual to ensure that you can be in a tax situation that is as positive as possible. It is also notable that you should ensure you are claiming all of the relevant expenses.

    There are many possibilities for landlords to save money on their property investment. Whether that means working with skilled accountants, or simply ensuring that you have optimised all of your outgoings, it is something that every landlord can do.



    Written By Annie Button

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    Related information

    Lettings Agency Of The Year Awards

    Posted by Simon on May 26th, 2010

    Student Properties to Rent In Manchester

    Posted by Simon on June 25th, 2010

    How To Identify A Good Lettings Agent

    Posted by Simon on November 8th, 2012