7 Ways to Lower Rental Property Expenses by Thousands Per Year

What It Covers

Dave Meyer and Henry Washington outline seven concrete strategies rental property investors use to reduce per-deal expenses by thousands of dollars annually — covering closing costs, seller credits, insurance premiums, materials sourcing, contractor bids, software subscriptions, and property tax assessments — applicable to both new acquisitions and existing portfolios.

Key Questions Answered

• •Closing Cost Programs: State and local down payment assistance programs, including forgivable second mortgages of $10,000–$15,000 and outright grants, go widely unused by investors. Membership organizations like BiggerPockets Pro have negotiated $1,000–$1,250 off closing costs per deal with lenders LendingOne and Kiavy, usable twice annually for DSCR and bridge loans.
• •Seller Credits Strategy: In the current buyer-favorable market, requesting seller credits on every deal is standard practice among seasoned investors. Rather than negotiating a lower purchase price, securing a $5,000–$10,000 cash credit keeps the financed amount higher, giving buyers liquid capital for reserves or renovations while spreading repayment across the loan term.
• •Insurance Shopping: Landlord insurance premiums have risen over 40% since 2020 and rank among the top portfolio expenses. Shopping at the portfolio level, using insurance brokerages to access multiple carriers, and securing landlord-specific coverage — including business interruption insurance and umbrella policies — can save hundreds annually. Verify replacement value reflects current construction costs.
• •Materials Sourcing and Contractor Bids: Sourcing flooring, countertops, and fixtures directly from warehouses or suppliers rather than through general contractors saves $0.50+ per square foot — thousands per renovation. Getting a minimum of three bids per trade per project is non-negotiable; real-world examples show HVAC quotes ranging from $17,000 to $33,000 and asbestos removal from $4,500 to $23,000 for identical scopes.
• •Property Tax Contests: Investors can formally contest property tax assessments through each municipality's established process, typically online or by phone. Henry Washington reports a 100% success rate contesting assessments in Denver, consistently achieving the midpoint between his proposed value and the city's figure, saving hundreds to over $1,000 per property with roughly four minutes of effort.