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. With the Alberta oil sector being down, every area of real estate has been affected; both tenants AND landlords of commercial, multi-family and residential properties are feeling the pinch. So 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 THE major aspect of your real estate investing business success and deal with it quickly and efficiently every time.
Do your best to find quality tenants. This is huuuuge! 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. Be sure read this helpful article from Forbes magazine on the key aspects of tenant screening. NEVER FORGET….if you think a vacant property is expensive, just wait until you get the WRONG tenants to lease your property. Then you will learn the painful lesson of what expensive really means!
Trust us. If you’ve never seen your rental property looking like this…you never want to! Take the right steps and screen your tenants properly, regardless what the Edmonton vacancy rate is.
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 who will stay long term and 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. So what does that look like you ask? Check out this helpful infographic from Fortune Builders for ways you can become a better Edmonton landlord.
Even in the good times, never mind the rough economic patch we’re in, it’s important to do all you can to AVOID facing the difficulty of paying the mortgage out of your own pocket. That applies just as much to a real estate investing 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.