Mortgage Trouble For Landlords
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 you will struggle to pay the mortgage. Here are some key things you can do to avoid facing difficulty in paying your mortgage each month.
Keep your property rented! OK, this is obvious, but its real important. You have to stay ahead of the game by communicating with your tenants regularly. Open communication will ensure you know when you need to start looking for another tenant. If you get slack in this area, its your own fault. Once you know or “sense” you may be facing a vacancy, its time to start advertising.
Always screen your tenants. This is hard work, but it pays off big time. You have 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.
Try and find long-term tenants. Good quality tenants are not always long-term ones. Some good tenants will know that cant stay long. They may be good wage earners and will want to move on and buy a house. Whatever the case, always go for long-term renters when you have a choice. This is one reason to consider NOT raising the rent. The cost of vacancies every year and repainting will probably outweigh the extra hundred dollars a month. Leaving the rent a little below market value may keep a tenant in place for years and years.
Keep the property well maintained. If you want good tenants and ones that will stay, then deal with maintenance issues quickly. Make repairs as necessary. Make sure the appliances are in good working order. Always respond to your tenants’ calls quickly and keep them informed of your availability and your intentions.
Summary: It’s important to do all you can to avoid facing the difficulty of paying the mortgage, especially in a tough economy. Being a good landlord will go a long way in developing a good long-term relationship with your tenant. This will result in low vacancies, and keep the rents coming in on time. What else could you ask for? The rest is up to you!