As a real estate investor or landlord, you want to avoid finding yourself in circumstances that will make it hard to pay the mortgage on time. Here are some things you can do to avoid facing problems when it comes to paying your mortgage each month.
Keep your properties full. While this may sound overly simplified, it 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 good and reliable tenants. Don’t put off screening applicants because you are “too busy” or overworked. You need to make the time for it. Prioritize filling your vacancies, it is a major aspect of your business success, deal with it quickly and efficiently every time.
Do your best to find quality tenants. While you want to keep your properties full, finding good quality tenants is key. A “good” tenant means they pay their rent on time, keep the property well maintained and they do not abuse the lease. We advise you run background and credit checks on your applicants so you can find the best possible tenants for your property. Tenants that will take care of the home and keep your rental fees coming in regularly so you can always meet your mortgage payments.
Look for tenants with multiple sources of income. The Covid-19 pandemic placed many renters in a tough spot as their main sources of income suddenly disappeared. Naturally this affected the landlords as well as they could not meet their mortgage payments due to the low rental income. However this was not the case for all renters. Tenants with multiple sources of income (youtube, e-commerce, consulting, etc.) were not affected as much as the tenants with a traditional 9 to 5 day job. The multiple earners were able to leverage their online income sources to still make their monthly payments. Which turned out to be an unforeseen safety net for landlords. So when looking for renters, choose tenants with multiple sources of income as a safety net for hard economic times.
Look for longterm tenants. Do not assume that good tenants will automatically be longterm tenants. Some good quality renters are only planning to rent for a few months. They may be students or working a temporary job. They may just be living temporarily in an area waiting to move or retire somewhere else. Whatever the situation, inquire and choose longterm renters whenever the choice is available. Having a good quality tenant for a long period of time in a very good situation for any landlord.
Keep the property well maintained. If you want to attract good tenants who pay their rent on time, you need do your part to keep them. Deal with maintenance issues quickly. Make repairs when necessary. Upgrade the appliances or at the very least ensure the ones you provide are in good working order. Respond to your tenant calls as quickly as possible, and if you are unavailable for any reason, make sure to communicate this to them. Try your very best never to leave you tenants in a tough spot without any support.
Being a good landlord will go a long in way in developing lasting relationships with your tenants, which in turn will help you keep them in your property for much longer. Often the relationship between a tenant and a landlord can turn an average tenant into a great one simply because they want to keep that relationship intact.
So there you have it, it is important to do all you can to make sure you can always pay your mortgage on time. That applies to all homeowners and renters. It is our hope that these simple tips will encourage you to find and develop lasting relationships with longterm, rent paying tenants who will bring in the income you need every month.