Best Rule of Thumb for Managing Rental Property Mortgage Payments
UPM QUICK REFERENCE TIP: Best rule of thumb for managing your rental property mortgage payments is to build up a buffer reserve fund of at least one month's mortgage payment amount, ideally two to three months' worth.
- Maintaining a buffer reserve fund reduces if not eliminates stress related to meeting monthly mortgage payments.
- You will be able to make monthly payments early, regardless of timing of rent payments received.
- You will reduce if not eliminate related late payment fees and penalties.
- With at least two months' worth of reserve you reduce stress related to addressing larger unforeseen repair costs or short-term vacancies.
- How long it takes to build the reserve fund depends upon the amount of your mortgage payment(s) and what other income you possess outside of rents.
- If you are working with a property manager, you have the option of applying/stockpiling all of a portion of your monthly owner residual for this purpose.
Posted by UPM Investor Blog at 7/21/2010 10:51 AM 
Categories: property management, investment property management, rental property mortgage payments, residential property management
Tags: managing investment property mortgage payments managing income property mortgage payments
Categories: property management, investment property management, rental property mortgage payments, residential property management
Tags: managing investment property mortgage payments managing income property mortgage payments
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