You may think it’s only the tenant who has a hard time falling behind on bills, but as a real estate investor or landlord, there may be times when paying the mortgage on your end as well. Here are some things you can do to avoid facing difficulty in paying your mortgage each month.
Fill your vacant units and keep them full. Sounds simple right? If you want to avoid foreclosure in the future, then focus on ensuring you’ve got rent money coming in each month to cover your property mortgage payments. If you list your property for rent, and you are not getting multiple applications within 7-10 days, your price is too high! Supply & Demand never lies nor fails, so it’s better to spend the extra buck to make your rental unit stand out amongst the crowd. 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.
Finding good tenants is crucial but also time consuming. 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 longterm tenants. Don’t assume that quality tenants will necessarily be longterm 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 longterm renters when the choice is available.Doing so will make filling a vacancy at least a more infrequent possibility.
If you keep the property well maintained in New Britain, it will attract If you want good tenants, longterm 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, 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 tenant into a great one simply because they want to keep that relationship intact.
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.