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.
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. 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.
Some action items you can perform to keep your properties rented are: posting ads regularly on Craigslist and Zillow.com along with other auction sites, asking around by word of mouth on the street, and posting signs up in the neighborhood to look for qualified tenants. You can also think outside of the box and employ your own marketing strategies to determine which are the most effective in your area. But whatever you do, don’t slack and forget to market for tenants, otherwise, you may end up watching your cash flow go down the drain.
Do your best to find exceptional 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.
You can advertise properties for rent on Zillow.com which will usually result in a handful of calls depending on your area. Then, it really becomes a question of screening the tenants as they come in to see which ones are eligible to rent your home. If you find one that meets your criteria then you can send them a lease agreement electronically to consummate the deal and finish up the process to make it a legally binding agreement.
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.
Search for families who have a long history together and have stable incomes. This seems obvious, but I can’t tell you how many landlords I’ve seen rent their homes out to a young bachelor or a couple. If you want to get the most reliable tenants in your rentals then you absolutely have to get some type of screening process in place so you can prioritize them in the order in which they should be looked at.
Keep up with routine maintenance procedures.
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 a while.
If you have to, hire a maintenance man or handyman to visit the property once or twice per month to check and make sure everything is in satisfactory working condition. Tell him to check and make sure none of the pipes are frozen (if during winter months) and also to check to make sure all electrical outlets and connections are functioning properly. Also, inspecting the HVAC systems to make sure the heat and A/C is working should also be a top priority on your spreadsheet.
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.
If you have a rental property in South Jersey that you would like to consider selling to pay off debts and consolidate your funds then please reach out to us directly via call or text at (215) 882-9828 to speak with one of our customer service reps who will be able to give you an instant cash offer on your company without any delays.