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. Follow these simple tips to help pay your mortgage on time, every month.
The first tip would be to keep your properties occupied. While it may sound overly simplified, this is the most obvious method for ensuring you’ve got rent money coming in each month to cover all those mortgage payments. When a tenant moves out, get to advertising as soon as possible. Never put off screening applicants or filling your properties, just because you feel busy or overworked. Should you not have the time, hiring a quality property manager will give you the results you need. Recognize filling your vacancies as a major aspect of your REI business success and deal with it quickly and efficiently every time.
Tip #2 would be to consistently find high-quality tenants. While you want to keep your properties full, finding good quality tenants is key. A “good” tenant will always pay their rent on time, keep the property maintained and won’t abuse the lease. By using background and credit checks to vet new tenants, you can find the best tenants available and thereby do everything you need to keep your rental fees coming in regularly, which will help you pay the mortgage when it comes due.
Tip #3 is to look for longterm tenants. Keep in mind that long-term tenants and quality tenants are not always one and the same. Some good renters may know they can’t stay over a few months at most. They may be students or working a temporary job. Maybe they’re living in the area temporarily, or retiring soon. Or maybe they’re on a long vacation. Whatever the situation, when you have the choice, always opt for long term renters. Doing so will make filling a vacancy at least a more infrequent possibility.
Last but not least, keep your property well-kept and maintained at all times. Good tenants are much more likely to come when you’re a good landlord. Take care of all 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, or if you can’t, consider hiring a property manager to handle incoming calls.
Being a good landlord will go a long in 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 an amazing one simply because they value the relationship you have with them.
In a tough economy, it’s important to do all you can to avoid facing the difficulty of paying the mortgage. This concept applies to both REI professionals and renters alike. These four simple tips can help tremendously as you work to develop lasting, longterm, rent paying tenants to keep your properties bringing in the income you need every month.