5 Savvy Ways to Avoid Missed Mortgage Payments

Jon always says that, “Owning a property has a variety of advantages and benefits, especially when you turn it into a rental property.” And I couldn’t agree more. As a cash home buying business in Philly, there are several investment opportunities throughout the city.

But owning a property means keeping up with the mortgage payments. When you have tenants, missing mortgage payments is always a possibility.

Missed mortgage payments can be a serious issue. Most lenders will foreclose on the property after three months of missed mortgage payments. As such, it’s essential to Keep Up With The Kash!!

I tried a pop-culture joke, and I believe I nailed it!

I firmly believe that “Financial stability in rental properties starts with how you run your rental property and manage your relationships with tenants.”

Our team figures that prevention is better than cure when it comes to mortgage payments.

1. Find Great Tenants

Firstly, it’s important to find good, reliable tenants who pay rent on time every month. While you don’t want voids in a property, don’t rush into finding a new tenant or take anyone on just to fill a void. Once in, a tenant can be difficult and costly to evict (learn more about the Philadelphia eviction process).

It takes some time, effort, and expense to find high-quality tenants. By utilizing credit checks and background reports, you can find the best tenants who won’t hassle you with missed mortgage payments. Using a real estate agent to help you find trustworthy tenants is a great way to ensure the occupants are suitably vetted and found via the right channels.

2. Avoid Vacancies

You need to keep rentals at full (or optimum) capacity to avoid missing mortgage payments. This is the best way to ensure you have regular rental income to cover your mortgage payments each month. While it may sound obvious, vacancies coupled with a poor marketing strategy are the primary reasons why landlords can’t pay their mortgages.

Build a clear strategy for how you’re going to find new tenants when a current tenant gives notice. For example, don’t delay promoting a rental listing. As soon as the notice is received, start advertising the property and organizing viewings. Don’t procrastinate or leave it to the tenants to find someone new. Cast a wide net when advertising a property, and don’t rely on one potential tenant coming through.

3. Keep Up With Maintenance

The best way to avoid missed payments and vacancies is to keep current tenants happy. If you find a rock-star tenant who plans to live in your unit long-term, do your part to keep them.

Respond quickly to the tenant’s reasonable complaints. If repairs are needed, action them as a priority and keep tenants informed. Should a tenant call, acknowledge it.

In my years as a property investor, I have realized that “The best landlords anticipate problems and fix them before they become an issue.”

4. Find Long-Term Occupants

Searching for long-term occupants is another way to prevent missed mortgage payments. When listing the property, advertise it to attract long-term tenants.

However, don’t assume that quality occupants will always be long-term ones. Some great tenants may move in and out of Philadelphia for various reasons.

5. Be a Great Landlord

Finally, being a decent landlord goes a long way in creating fruitful and easy relationships with your tenants. Always be polite, respectful, and courteous with your tenants. This includes communicating about repairs, responding to calls, replying to emails, and notifying tenants about lease changes.

Summary

If you want to avoid missed mortgage payments as a landlord, you know what you gotta do! Jon has tenants in one of his rental properties, and he treats them like family. He is even a godparent to one of their kids. All their years as tenants in Jon’s property, they have never missed their rent, and Jon has never missed his mortgage payment.

Now that’s what I would call a modern mortgage love story!