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 it’s hard to pay the mortgage on your end as well. The last year has been especially tough on landlords with the eviction moratorium in place during Covid. Luckily we are starting to come out of the darkness of Covid financially and the eviction moratorium is suppose to end June 30, 2021. We are the Home Buying Guys and here are some things you can do to avoid facing difficulty in paying your mortgage each month.
1. 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. When times are rough the goal is to keep rentals rented as many months as possible even if you are only breaking even.
2. 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. There is always an option to hire a professional management company to handle the tenant screening and day-to-day operations of rental properties. If you are doing this yourself, be diligent in your screening process and it will save you a few headaches. There are a ton of people moving into DFW so finding good tenants should not be difficult.
3. 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. Its always cheaper to maintain the same rent with a current tenant then turn the property over and have to do a make ready.
4. 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. Keep in mind the condition of a rental should be SAFE, CLEAN AND FUNCTIONAL.
5. Hire a property management company –
I highly recommend new investors learn to manage your first couple of properties yourself so you understand the process then turn the management over to a professional. This will allow you to focus on your business and not in your business and you can ensure a higher level of professionalism with tenants.
Being a good landlord or property owner in Lancaster 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.
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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. We buy houses in Lancaster TX and if you have any questions reach out to us, the Home Buying Guys and we can help you!