Tips to avoid Trouble Paying your Mortgage

Learn How to Avoid Trouble Paying your Mortgage

As a real estate investor or landlord, you might think it’s only the tenant who struggles with mortgage payments. However, there are times when you might find it challenging to pay the mortgage on your end as well. Here are some strategies to help you avoid trouble paying your Mortgage each month.

Strategies for Phoenix Homeowners to avoid Trouble Paying your Mortgage

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. Here are some tips to keep your properties full and avoid trouble paying your mortgage:

Don’t slack on advertising for new tenants. Consistent advertising ensures a steady stream of potential renters.
Don’t put off screening applicants or filling your properties. Even when you get busy or overworked, prioritize filling vacancies.
Recognize filling your vacancies as a major aspect of your REI 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. By “good,” it means they pay their rent on time, keep the property maintained, and don’t abuse the lease. 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. Here’s how:

Deal with maintenance issues quickly. Prompt attention to repairs shows tenants you care about their living conditions.
Make repairs as necessary. Keeping the property in good condition prevents small issues from becoming major problems.
Upgrade appliances or at least ensure the ones you provide are in good working order. Modern, functional appliances can be a significant draw for tenants.
Respond to your tenants’ calls quickly. If you can’t, make sure they know you’ll be unavailable for a while.

Be a good landlord

Being a good landlord will go a long 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.

Additional Tips for Success

Communicate Clearly and Often

Open lines of communication can prevent misunderstandings and foster a sense of community. Regularly check in with your tenants to address any concerns they might have.

Offer Incentives for Long-Term Leases

Consider offering incentives for tenants who sign long-term leases. This could be in the form of a slight rent reduction, a free month of rent, or upgrades to the property.

Stay Informed About Market Trends

Keep an eye on the local rental market to ensure your rental rates are competitive. Adjusting your rates to reflect market conditions can help you attract and retain tenants.

Create a Welcoming Environment

Make your property a place where tenants want to stay. This could include adding amenities like a community garden, a fitness center, or hosting tenant appreciation events.

Plan for Vacancies

Even with the best efforts, vacancies can happen. Have a financial cushion to cover mortgage payments during these times. This can help you avoid financial stress and maintain your property until you find new tenants.

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.