You may believe the tenant is the only one who has a hard time paying the mortgage, but as a landlord or real estate investor, sometimes it is difficult to pay the mortgage on your end as well. Here are some tips to avoid facing problems in paying your mortgage each month.
Keep your properties occupied. This may sound like the most obvious answer to ensure you have steady rent money coming in to cover your property mortgage payments. Don’t slack on advertising for new tenants and don’t put off screening applicants or renting your properties because you are too busy. Understand that renters are a major aspect of your REI business and filling your vacancies needs to be dealt with quickly and efficiently.
In addition to keeping your properties full, finding good and quality tenants is the key to success. Who qualifies as “good?” People who pay their rent on time, keep the property maintained, and do not abuse the lease agreement. You can find the best tenants available by requiring background and credit checks. Keeping your rental fees coming in regularly helps you pay the mortgage when it comes due.
Find long-term tenants. Do not presume all quality tenants will be long-term ones. Some renters know they their location is temporary, sometimes just a few months. Maybe a student, someone working a temporary contract job, or a couple building their dream retirement home in another state. Whatever the situation, choose long-term renters when there is a choice to avoid frequently needing to fill a vacancy.
Keep the property well maintained. If you want to keep good, long-term, and pay-on-time tenants, you must do your part to keep them. Respond to maintenance issues quickly. Make repairs as necessary. Upgrade appliances or at least ensure the current ones you provide are in good, working condition. Respond to calls from your tenants promptly, or at least let them know you are unavailable and will get back to them later.
Being a good landlord goes a long way in developing lasting relationships with your tenants, which will, in turn, help you keep them. A relationship between the tenant and landlord can turn even an average tenant into a great one simply because they want to keep that relationship intact.
It’s important to do all you can to avoid facing the difficulty of paying the mortgage on your rental property in a tough economy. This applies to an REI professional as well as the average renter. To keep the steady flow of income you need each month, these simple tips can help guide you as you work to develop long-term, lasting, and on-time rent-paying tenants.