How to Cut Landlord Running Costs Without Cutting Corners

Rising day-to-day costs are eating into landlord margins, so it is important that you find new efficiencies for your rental properties. Recent analysis shows that landlord running costs account for 25% to 45% of the amount received in gross rent. This includes outgoings like maintenance, insurance, utilities, professional fees and compliance.

Maintenance and repairs are the single biggest outgoing, taking 31% to 39% of total spend depending on property type.

This article explores ways to reduce landlord running costs without affecting the service you offer your tenants.

1) Tackle the biggest cost first: maintenance and repairs

If maintenance is your largest expense, make it predictable.

• Move to planned preventive maintenance (PPM). Schedule boiler services, gutter clearing, extractor cleaning, sealant renewal and roof checks on a calendar so small issues do not become large ones.

• Standardise diagnostics. When a tenant reports a fault, ask for photos or a short video and basic checks (fuse, valve, filter) before calling trades. This reduces unnecessary call-outs.

• Create a vetted contractor panel. Agree on response times, fixed call-out rates and photo-based sign-off. Track first-time-fix rates and stop working with underperforming contractors.

• Stock sensible spares. Keep universal parts that fail often (washer kits, TRV heads, alarm batteries) to speed low-cost fixes at inspection.

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However, this can be time-consuming. Another option is to outsource property management to us, including your maintenance. This way, you guarantee a professional and consistent service that leaves you free to build your business.

2) Cut energy waste, not comfort

For HMOs, utilities can reach 16% of total costs versus 4% for non-HMOs because bills are commonly included in an HMO’s rent. Even if tenants pay their own bills, efficiency upgrades lower complaints, improve EPC ratings and reduce churn.

• Quick wins: LED lighting, TRVs on radiators, smart thermostats with time and temperature limits, draught-proofing and cylinder insulation.

• Ventilation matters: Keep extractor fans clean and working to prevent damp that leads to expensive remedial work.

• Fair-usage policies for HMOs: Make the allowance clear, show how usage is tracked and educate residents at check-in to avoid shocks when the bill arrives.

• Targeted fabric upgrades: Top up the insulation in the loft, add secondary glazing in older housing stock and seal around doors and windows to reduce landlord running costs quickly.

3) Buy smarter on insurance

• Shop around: Shop the market at every insurance renewal and check that the sums insured are accurate. Over-insurance wastes money. Under-insurance risks average clause reductions.

• Bundle where it helps: Multi-property and portfolio policies can cut per-property cost, but check excesses and exclusions.

  
  

4) Reduce voids and turnover

A month with an empty property can wipe out a year of small savings.

• Price precisely: Price favourably against the market to let quickly rather than holding out and risking a void.

• Prepare well: A clean, well-maintained home with working alarms and a serviced boiler lets faster and keeps tenants longer.

• Renew early: Start renewal talks 12 weeks before the end of the term and offer options like a longer fix or small upgrades in exchange for commitment from current tenants.

  
  

5) Streamline processes to save time

• Digital reporting: A simple portal or form for repairs with photo upload and auto-acknowledgement reduces back-and-forth and creates a clear record.

• Templates and checklists: Standard move-in packs, pre-exit checklists and inspection forms minimise disputes and repeat work.

• Outsource property management: Let Executive Property Management Solutions look after tasks such as rent collection, legal notices and renewals. We make sure you meet compliance requirements, and all tasks run smoothly with regards to your properties, saving time and duplicated effort.

  
  

6) Spend where it saves

• Durable finishes: Washable paint, hard-wearing flooring in high-traffic areas and quality taps save on repeat call-outs.

• Right-size appliances: Choose reliable models with good parts availability. Register them for warranties and keep manuals together.

• Water controls: Aerators and dual-flush kits are cheap and can lower combined water and energy bills, especially in HMOs.
  

7) Keep clean records and claim what you can

• Track every cost: Accurate, categorised records help you see which properties drain cash and where to intervene.

• Claim allowable expenses correctly: Speak to your accountant about what revenue is versus capital, and how to treat replacements. Good records mean fewer missed claims.

• Plan capital expenditure: A rolling five-year plan for kitchens, bathrooms, windows and heating avoids emergency spending at premium rates.

  
  

Want help cutting landlord running costs?

The numbers are moving the wrong way for many landlords: a quarter to almost half of gross rent is being eaten by landlord running costs, with maintenance and repairs the biggest slice and utilities a major factor in HMOs. Focus on prevention, standardise your processes, buy well and keep tight records. And look into outsourcing many of your convoluted processes to us. Contact us today.