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Aug Sat 30, 2014, 10:27 AM

Spending to Save


hand holding moneyWe all know that the classic image of the tight-fisted landlord who is unable to spare a penny to conduct the simplest of repairs is a myth, but there are plenty of landlords out there who are reluctant to spend money in the short term even if ultimately it will reap rewards in the long term. There are definitely areas in the property business that are like this, so where should you be spending with a view to saving?

Good Quality Fittings

Without doubt the worst purchases that landlords make are cheap fittings. Floors, furniture and white goods are some of the most uneconomical items if bought on the cheap and they simply won’t last you any time at all. Buy a reasonable level of quality, even in your cheapest properties, and ensure your tenants look after it and give your fittings the life they deserve. It’s much better to spend £500 on a reliable, five year fridge than £250 every two years.

Energy Efficiency

It used to be that green spending was a bit gimmicky; solar panels or loft insulation would cost you a fortune and never really earn it back. However, that just isn’t the case anymore; landlords can easily spend on energy efficient products and be sure of a return after a few years. It really does make sense to spend on green investments.

Legal Fees and Insurance

One area where it really doesn’t pay to scrimp is your legal fees and your insurance. Make sure you spend the money and get your mock contract looked over by a good solicitor for fear of it not holding up in court in the future. Investments in things like rent guarantee insurance are also incredibly good value: policies are available for less than £100 and can save you thousands if the money doesn’t come through.

Sometimes there’s no other solution than just opening your wallet! It’s good to spend every now and again, but make sure your spending is constructive and adds value to your business over and above what it’s costing you.

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