How Homeowners Can Save Big Bucks
Owning a home is expensive. On top of mortgage payments, you’ve got property taxes, repairs, multiple insurance policies, and possibly HOA fees. That doesn’t even cover the cost of additions, renovations, and other random fees – it is important to find the right people – make sure to check out the best electrician in Bucks & Montgomery County, PA.
Despite the bills, owning your home gives you the freedom to build as you wish and decorate however you want. You don’t have to follow anyone’s arbitrary rules, other than the laws your city and county have enacted.
While being a homeowner comes with a handful of unavoidable bills, there are ways to save money, even on expenses that seem non-negotiable.
- Perform some of your own repairs
There are certain repairs that should always be left to a professional, like electrical work and big roofing jobs. However, some tasks are easy enough to complete on your own, and by doing so, you’ll save some serious cash.
If you experience a flood in your home, for example, there are some easy clean-up tasks you can do yourself to mitigate the damage. “When your deductible is higher than the cost of repairs, you can mitigate the damage by immediately ripping out soaked carpet,” says Dennis Chinea from NJ Water and Mold. “You’ll need to hire a company to bring in industrial fans, but it’s imperative to start the drying process immediately to prevent mold and mildew.”
Other repairs you can perform on your own will vary based on your skills and comfort level. However, in general, it’s common for homeowners to repair decks, replace shingles, fix holes in the drywall, and replace broken pipes. If you have a DIY mindset, you can find instructions on YouTube for just about any job.
- Contest your property value assessment
Every five years or so, the county will reassess the value of your property. Generally, the value will always increase, which means your property taxes will also increase. Sometimes assessors visit properties in person, but not always. More often these days, they perform their value assessments in an office using software. This means there is plenty of room for error.
When you get your assessment notice in the mail, it usually comes with a deadline for contesting the final assessed value. If the county has valued your home above what feels reasonable, file the form to object and have it re-assessed.
Do everything possible to get an assessor to physically come to your house and take a walk-through of your property to get a realistic idea of what they’re assessing. Once they see your property up close, they might lower the value.
- Hire a property manager for investment properties
If you own rental property, you can save money over the long-term by hiring a property management company. When you have an experienced property manager handling your rentals, you’re more likely to get high-quality tenants who don’t create expensive problems for you. Your properties will be well-maintained, repairs and maintenance will get done, and vacancies will be filled fast.
Tenants are full of surprises, and it’s only a matter of time before you incur unexpected costs from things like broken lease agreements, repairs, damage that exceeds the security deposit, and possibly even court fees if a tenant sues you for some reason. Having a property manager take care of your tenants reduces the potential for these types of scenarios, which will save money long-term.
- Get out of your HOA community
Homeowners associations (HOAs) have a bad reputation for a reason – they can be restrictive, expensive, and annoying. Although necessary, these groups tend to morph into an adult version of a high-school clique and it’s not uncommon to see entire communities constantly at war with their HOA. Sometimes, homeowners get fined for violations out of spite and many covenants contain legally unenforceable rules.
If you own a home that’s governed by an HOA, and you aren’t happy with how things are being run, consider selling your home and buying a property elsewhere. You’ll save plenty of money on monthly dues, and while you will have more responsibilities, if you buy a house with a cheaper mortgage, it won’t matter.
Every dollar you save is money you can invest
Whether you’re into investing in stocks, CDs, or physical goods, every dollar you save is money you can throw toward your investments. If you’re a real estate investor, your savings will increase exponentially the more property you own, so use the tips outlined in this article to keep more cash in your pocket and reduce the expenses of being a homeowner.
