You may think it’s only the tenant who has a hard time paying the mortgage, but as a real estate investor or landlord, there may be times when it’s hard to pay the mortgage on your end as well. Here are some things you can do to avoid facing trouble in paying your mortgage each month.
Keep your properties full. While it may sound overly simplified, this is the most obvious method to ensure you’ve got rent money each month to cover your property mortgage payments. Don’t allow yourself to get slack on advertising for new tenants. And don’t put off screening applicants or filling your properties because you get busy or overworked. Recognize filling your vacancies as a major aspect of your REI business success and deal with it quickly and efficiently every time.
Avoid running into mortgage-paying trouble by following simple tips.
Do your best to find quality tenants. While you want to keep your properties full, finding good quality tenants is key. By “good,” it means they pay their rent on time, maintain the property, and don’t abuse the lease. By using background and credit checks, you can find the best tenants available and thereby do what’s possible to keep your rental fees coming in regularly, which will help you pay the mortgage when it comes due.
Look for long-term tenants. Don’t assume that quality tenants will necessarily be long-term ones. Some good renters may know they can’t stay for a few months. They may be students or working temporary jobs. They may just be living in an area waiting to move or retire somewhere else. Whatever the situation, opt for long-term renters when the choice is available. Doing so will make filling a vacancy at least a more infrequent possibility. A long-term renter secures your income and mortgage payments.
Avoid trouble by Keeping the property well-maintained. If you want good long-term tenants and tenants who pay their rent on time, do your part to keep them. Deal with maintenance issues quickly. Make repairs as necessary. Upgrade appliances or at least ensure the ones you provide are in good working order. Respond to your tenants’ calls quickly; if you aren’t sure, they know you’ll be unavailable for a while.
Being a good landlord will go a long way in developing lasting relationships with your tenants, which will, in turn, help you keep them in your property longer. Often a tenant and landlord relationship can turn an average tenant into a great one simply because they want to keep that relationship intact.
Your mortgage payments on time will guarantee you access to more credit, which means more investments and income.
In a tough economy, it’s important to do all you can to avoid facing the difficulty of paying the mortgage. That applies just as much to an REI professional as to the average renter. These simple tips can help as you work to develop lasting, long-term, rent-paying tenants to keep your properties bringing in the income you need every month.