The advantages of shooting on location is that usually it is more fun, that everything looks real, that natural sound is there, and better providing you are not next to a freeway or airport, and that you usually save the entire cost of set construction. Choosing locations is a time consuming and difficult task but rewarding. Choosing costumes is another vital job in which the director as well as the costume designer must be involved. Special effects are difficult and expensive. Avoid them on low budget films.
Props are vital and too often overlooked.
Rehearsals are important on low budget films because you cannot afford many retakes. Their comments on the script may be very perceptive. They need to know your vision and hopefully, it is close to theirs. Be careful, it is pointless to ask an actor to play in a way he is unable to play event if he is willing. If you cannot help them gently to change, leave them to get on with their interpretation - or fire them.