If you are a landlord or a homeowner who owns multiple rental properties, you are undoubtedly familiar with the trials and tribulations of home ownership. It seems that every single month something new pops up on your radar: a broken sink in a rental flat, a landscaping issue at home or a malfunctioning heater in a new property that you just purchased.
With so much on your plate, it can often feel like you are running around like a chicken with your head cut off. While you obviously have loads to do each and every day when it comes to your family obligations, tenants’ needs and your own career, you must ensure that you stay on top of your monthly payments. It can be so easy to forget to pay bills on time, especially when you may not see them on a regular basis.
Do not get stuck in the cycle of late payments – this can be truly devastating for your credit rating. You may have had absolutely no problem getting mortgages for your first two or three properties, but the minute that you start missing payments on your existing investments you can kiss your good credit goodbye.
If you make a regular habit out of neglecting your payments, you are essentially telling your bank that you are not worthy of further trust, and establishing new lines of credit or buying new homes will be impossible.
All too often, you hear about this problem, with new landlords forgetting to pay bills. Here is a brief three point checklist that can help you to protect yourself – and your credit rating.
Insurance – Your homeowners insurance payments may not seem important if you are feeling particularly cash strapped – you may feel like this is the first thing that you can get away with cancelling, but remember: your insurance doesn’t only protect your clients, it protects you. Make sure you purchase landlords insurance and keep it up to date.
Direct debits – Remember, if you set up a direct debit for bills or insurance and then change accounts, you must ensure that you reassign all of your direct debits, or maintains an adequate balance in your original account to cover bills.
Gas certificate safety checks – These gas certificate safety checks are mandatory every 12 months at all of your properties. If you neglect to keep this obligation you can face fines, legal action and even lawsuits.
Check your credit – Checking your credit report annually is a smart thing for any landlord to do – apply for your free credit report here and make sure you are in good fiscal health.
As you can see, neglecting to keep on top of your financial responsibilities as a landlord can have severe repercussions. By staying on top of your finances you not only keep your tenants safe and happy, you keep your credit report in top notch working order.