You would think a tenant is renting because they have a hard time paying a mortgage, but there are times when a landlord or real estate investor could also run into some troubles paying the mortgage on their end as well. Here are some ways you can avoid the stresses of trying to pay the mortgage of your rental.
1. Avoid Property Vacancies
Keep your properties full. 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 your property mortgage payments. The average tenant stays for about 3 years. Knowing this number, you can expect a tenants desire to leave will be higher around this time. If you know your tenant won’t be renewing their lease, don’t allow yourself to get slack on advertising for new tenants. And don’t let being busy or overworked be an excuse for putting off screening applicants or filling your properties. You’ll be even more stressed trying to figure out how you’ll cover the mortgage. Filling your vacancies should be the primary aspect of your REI business success. Deal with vacancies quickly and efficiently, every time!
2. Find Quality Tenants
Do your best to find quality tenants. While you want to keep your properties full, finding good quality tenants is key. “Good Quality” meaning they pay their rent on time, keep the property maintained, and don’t abuse the lease. Background checks and credit checks can help you determine if they are going to be of good quality which in turn will keep your rental fees coming in regularly, and help you pay the mortgage when it comes due.
3. Find Longterm Tenants
Look for longterm tenants. While having quality tenants is ideal, quality tenants does not equal long term tenants. Some good renters may know they can’t stay over a few months at most. They could 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 longterm renters when the choice is available. This will also help you from having to go through the process of finding another tenant.
4. Keep The Property Well Maintained
If you want good tenants, longterm tenants, and tenants who pay their rent on time, do your part to keep them. Provide them with a place they feel is their home and is a place they wouldn’t want to leave. 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, or if you can’t be sure they know you’ll be unavailable for awhile. Being a landlord is a business of its own, and your tenants are the paying customers.
5. Be A Good Landlord
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 a great one simply because they want to keep that relationship intact.
Being a landlord isn’t easy, and 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.