Avoid late rent payments if you are a landlord.
The tenant isn’t the only one who has a hard time paying the mortgage. As a real estate investor or landlord, there are many times when it’s hard to pay the mortgage on your end as well. Here are tips for landlords to avoid late rent payments and what you can do to avoid being in a situation that can make it difficult to pay your mortgage each month.
1 – Do your best to find quality tenants. You want to keep your properties full and avoid late rent payments, so 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 terms of the lease. You should be performing background and credit checks so that 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.
2 – Keep the property well maintained. If you want good tenants, long term tenants and tenants who pay their rent on time, do your part to keep them. Deal with all maintenance issues quickly. Make repairs as necessary and as quickly as possible. Upgrade appliances or at least ensure the ones you provide are in good working order. Respond to your tenants’ calls as quickly as you can, or if you can’t be sure they know you’ll be unavailable for awhile.
3 – Look for long term tenants. Quality tenants aren’t necessarily long term tenants. 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, look for long term renters when the choice is available to avoid late rent payments. Doing so will make filling a vacancy at least a more infrequent possibility and reduce the overhead cost of repairs when one tenant moves out and another needs to move in.
4 – Keep your properties full. That may sound overly simplified, but 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 slack on advertising for new tenants, or maintaining a list of qualified renters that you can reach out to when a property opens up. And for however enticing it may seem, 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. If you need assistance in managing your properties, interview an hire a qualified property management company that will do all the heavy lifting for you for a reasonable monthly fee.
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, long term, rent paying tenants to keep your properties bringing in the income you need every month.