Do you have an income property? In this economy, making the decisions that will keep your profit margins as high as possible is critical. There are a lot of fees associated with property ownership: property taxes, maintenance, repairs, mortgages, and utility fees are just the beginning. But with a crunch on the economy, and as those ownership fees continue to increase, rental rates are facing strict limitations. That means that, in order to make a rental property profitable—or even sustainable—the efforts you put into finding the cheapest rate plans in Alberta are critical.
How do you find the right rate plan?
There are a few key tricks to finding the cheapest rate plans in Alberta. First, you need to know your energy consumption needs and patters, and that will largely depend on the type of rental property you own. If you are covering hydro in your rental rates, then you already know that you need to rent the property at a rate that covers those energy costs. But how can you make sure the rental rate covers energy fluctuations—especially when an unstable economy means unpredictable fluctuation? Finding the cheapest rate isn’t necessarily going to help this, but finding the cheapest rate plan will. For an income property whose rates are inclusive of energy consumption, you may find a fixed rate plan to be the most practical for creating an affordable and predictable budget that will allow you to determine the most effective (and still competitive) rental rate. On the other hand, choosing the lowest possible energy rate, one that is based on market prices, may not provide you with the predictable prices you need to make that decision easy, but it will provide you with the opportunity to benefit from the extra hydro-related income you have coming in when the market rates are low—just remember to set those profits aside to cover the extra costs that may incur if the market prices spike.
Of course, finding the cheapest rate plans in Alberta also means finding the provider that can offer the best plan to suit your needs as a landlord. Since the deregulation of the energy market, many providers have been sculpting their rate plans to match specific demographic needs. That means there are providers out there who can meet your needs, whether those are for metered units, or for deals on regulated rates for large-consumption.
How else can you save on energy rates?
Apart from finding the cheapest rate plans in Alberta, there are other ways to keep your energy costs low—even as a landlord who has little control over tenant energy use. You can install energy efficient light bulbs, light fixtures, appliances, windows, and even shower heads and toilets to help keep the energy consumption in your units low. And now, with the carbon levy in the works, is the perfect time to start benefiting from the government incentives that are available for making those changes.
The key to success with income properties lies in keeping the expenses low so your profits don’t all get sucked back into the maintenance of the property alone—and it all starts with finding the cheapest rate plans in Alberta.