According to a survey, renting an HMO to a tenant could save £1600 in just one year, compared to a more traditional 1-tenant property. This is due to the fact that HMO contracts often include most utility bills, like water and electricity in the rent, divided fairly among the tenants, making it more appealing to investors.
But to truly maximise your income potential, it is also in your best interest to reduce operational costs. Here are efficient ways to lower your utility bills.
Keep your vents open and clean
Talking to some of the landlords I know, they often tell me that when an inspector visits their property, they often give tips that most other landlords take for granted. For instance, inspectors actually tell you that if you have centralised air conditioning, or a centralised heating system, always check the vents in your home because some might be shut – costing you money.
It never occurred me that any vent could be closed without my knowing. So be sure they are open so your cooling/heating system can function at its peak efficiency.
Install Energy Efficient LED Lighting
LEDs are significantly more energy efficient and utilising them will spare a huge amount of power costs over a yearlong stretch. So while the cost of LED light bulbs may seem to be more than traditional bulbs, they will save you money in the long run. Not to mention, they will enhance your EPC rating too.
Reduce laundry expenses
Cutting off energy expenses on laundry takes a little more effort. In a perfect world, you’d want tenants to stack all their laundry in just one go. But, there is a limit to what the washing machine and drier can hold. Over-stacking them will only lead to damaged appliances, thereby adding to your maintenance and repair costs. So, always have signs that make it obvious to your tenants what the limit is of your washing machine and drier. Make sure they also follow your instructions to avoid unnecessary damages.