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 difficulty in paying your mortgage each month.
- Keep your properties full.
- Duh right? While this may sound ridiculously simple it ensures you’ve got rent money coming in 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.
- Find quality tenants.
- While you want to keep your properties full, finding good quality tenants is key. As in tenants that pay their rent on time, don’t trash the space and don’t abuse the lease. By using background and credit checks, you can find the best tenants available.
- Look for longterm tenants.
- Don’t assume that quality tenants will necessarily be longterm ones. Students or temp workers can be incredible renters that just can’t stay long term and that’s ok. They may just be living in an area waiting to move or retire somewhere else. Whatever the situation, opt for longterm renters when the choice is available. Doing so will make filling a vacancy at least a more infrequent possibility.
- Keep the property well maintained.
- To have good renters you’ve got to be a good landlord. This means dealing promptly with maintenance issues. 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 be sure they know you’ll be unavailable for awhile.
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 renter into a great one simply because they want to keep that relationship intact. It’s all about who you know right?
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 it does to the average renter. These simple tips can help as you work to develop lasting, longterm, rent paying tenants to keep your properties bringing in the income you need every month.