You may think it’s only the tenant who has a hard time a mortgage paying trouble, 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, and to avoid mortgage paying trouble for Pensacola Florida homeowners.
In our latest post, I will explain to you on how to stay current with your mortgage payments if you’re a real estate investor or a landlord.
Avoid Running Into Mortgage Paying Trouble for Pensacola-Florida Landlords
A lot of people think just because someone has a few properties or houses that they’re bullet proof for running into mortgage paying trouble. Nothing could be further away from the truth. Most of landlords have mortgages. It’s vital if you’re a landlord and have a mortgage to calculate your property expenses like, Property taxes, insurance, maintaining the property, and mortgage payment.
If you want to avoid running into mortgage paying trouble, then you must pay intention to what’s coming in from rental income against what’s your expenses. With inflation at all time high now. You need to pay attention to what to charge for rent to keep up with the inflation.
Everything is going up. insurance in Florida is more than double the cost as it was 2 years ago. Property taxes are rising due to the increase in the property value. Repairs and materials are at all times high due to the demand. Keep reading as I will show you what do you need to do as a landlord to keep up with the increase of your property expenses.
Stay Current With The Rental Rate
If you don’t already know that inflation will have a big impact on your property expenses, well now you know. As I stated above. The expenses are rising due to the inflation. So, your property will be effected with these inflations. You insurance rate specially in Florida is not the same rate as it was once a few years ago. Property taxes are rising, and maintenance to hire contractors or handymen is on the rise as well.
Based on these inflations you rent has to go up to keep up with your expenses. And also to keep up with any unexpected surprises that will come along. like roof damage from a storm, plumbing issues, Ac breaking down in the middle of the summer, and more than I could ever mention in one article. The list goes on and on. Your rent that you charge your tenants must go up based on the current rent market, and more importantly the inflation!
It’s an important step to keep your rent current to avoid running into mortgage paying trouble for Pensacola-Florida homeowners and landlords.
Work with your tenants with affordability of renting your property. But also tenants must work with you and understand you have your own expenses as well. I know it sounds hard for some tenants to hear that, but everyone must work together, landlords and tenants as well to have the best outcome for all. If someone doesn’t want to pay the fair rent at the current market price. Then it’s on the tenant but not on you as a landlord.
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.
Time is money. Don’t overlook how important to stay on the course and be active before the lease gets expire with your current tenant. If tenant wants to stay. Then update the tenant with the the new rent rate at least one moth before the lease expire, this way you give your tenants the option to either stay with the new rate or to find another place.
Always allow a month or two for lease extension with the old rate if they can’t afford the new rate. This way, they get enough time to find another place to live in without being financially stressed. We must do the right thing. It isn’t about us investors only. It’s about everyone!
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 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.
In a tough economy, it’s important to do all you can to avoid facing the difficulty of paying the mortgage. Mortgage paying trouble 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.
Reach us at Quality Properties Of Northwest Florida LLC – Call us at 850-346-4995 if you have any questions about a property you have with mortgage paying trouble. We can help you with that!