You may think it’s only the tenant who has a hard time paying the Rent 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.
Do your best 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.
Look for long term tenants. Don’t assume that quality tenants will necessarily be long term 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 long term 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 good tenants, long term 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.
Tips and Tricks to keep those occupancy numbers high
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.
- Regular Maintenance and Upkeep:
- Well-maintained properties are more attractive to tenants. Regularly address maintenance issues promptly to enhance the appeal of your rental units.
- Responsive Communication:
- Respond quickly to inquiries from potential tenants. Prompt communication and a streamlined application process can help you secure reliable tenants efficiently.
- Competitive Pricing:
- Stay informed about rental market trends in your area. Pricing your rental units competitively can attract tenants and reduce the time it takes to fill vacancies.
- Effective Marketing:
- Utilize various marketing channels to promote your rental properties. This includes online platforms, social media, and traditional advertising methods. High-quality photos and detailed property descriptions can make a significant impact.
- Tenant Retention:
- Retaining good tenants is as important as finding new ones. Keep communication open, address concerns promptly, and consider offering incentives for lease renewals.
- Streamlined Application Process:
- Simplify and streamline the tenant application process. This includes clear application instructions, easy-to-understand documentation requirements, and efficient screening procedures.
- Thorough Tenant Screening:
- While it’s essential to fill vacancies promptly, don’t compromise on tenant screening. Thoroughly vet applicants to ensure they meet your criteria and are likely to be reliable and responsible tenants.
- Flexible Lease Terms:
- Consider offering flexible lease terms to attract a broader range of tenants. This could include shorter lease periods or options for month-to-month rentals.
- Utilize Technology:
- Leverage technology to streamline processes. Online listing platforms, electronic applications, and digital communication tools can make managing vacancies more efficient.
- Networking and Referrals:
- Build a network within the real estate community and encourage tenant referrals. Positive word-of-mouth can be a powerful tool for attracting reliable tenants.
- Regularly Review and Adjust Strategies:
- Periodically review your marketing and tenant acquisition strategies. Stay adaptable and be willing to adjust your approach based on changes in the market or your specific property needs.
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.