Updated: Jan 3
Some think it’s only the tenant that have a difficulty 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 also. Here are some things you can do to avoid having issues with paying your mortgage every month.
Keep your properties occupied. While it may sound overly simplified, this is the most obvious method for ensuring you’ve got rental income every month to cover your house mortgage payments. Don’t let yourself to get slack on advertising for new tenants and don’t put off screening applicants or filling your properties because you "don't have enough time". View occupying your vacancies as a vital task in your investment business's success and deal with it in a haste with efficiently each time.
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, keep the property maintained 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 over a few months at most. They may be students or working a temporary job. 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.
Maintain your properties. If you want quality tenants, long term tenants and tenants who pay their rent on time, do your part to keep them. Deal with maintenance issues as soon as they arise. 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 help you 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. It can also go in the wrong direction if the relationship is bad and the tenant chooses to be spiteful.
In this economy, it’s necessary to do everything in your power to avoid facing the difficulty of paying the mortgage. That applies just as much to an real estate investment professional as it does to the ordinary tenant. 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.