Hey it is not just the tenants that have a hard time paying rent, but landlords and real estate investors also have a hard time paying the mortgage. Here are some of the things you can do so you don’t get caught with an overdue notice.
This may sound like common sense but keep your properties full. I know….easier said than done, but when done correctly you ensure a steady stream of income to cover your property mortgage payments. Don’t get in the habit of not advertising for new tenants, and putting off screening of applicants. Delays in filling a property will end up costing you a lot in the long run. Also make sure you have more applicants than what you need. Filling vacancies is an important part of the REI investing business, but is often overlooked, because we get busy in other things.
Quality of tenants is the key to ensuring your properties remain full. Many times landlords just put anyone in there to start collecting rent, until they aren’t collecting rent 😉 While it is important to keep full, make sure you are doing your due diligence in the screening process. Don’t call the last the last place they lived, call the place they lived before that. You never know when they may “use a friend” as their previous landlord. Conduct good background checks, and credit checks, to get good quality tenants.
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.
Keep the property well maintained. If you want great 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.