The secret to a consistent cash flow really isn’t a secret at all. Find a tenant to keep the property rented out and charge a fair market rent. Yet sometimes it’s not always that easy.

If you’re responsible for finding your own tenant or you employ thekeeping a property rented out services of a property management firm, either way there can be times when your unit is vacant when it shouldn't be.  Rental demand is high and shows no signs of abating any time soon but you still need to find the tenant that will not just sign a long term lease but pay you on the 1st, each and every month.

To help make sure you’ll be paid on time, have you thought of asking for a guarantor on the lease agreement? Someone who will agree to make the rental payment when due should the occupying tenant fall more than 30 days past the due date? Or worse, the tenant loses a job and can no longer make the rent payment. You don’t have to worry about evictions and defaults if you have a guarantor, a co-signer on the lease agreement.

This is much easier to accomplish, and yes a requirement, when the tenant is a student at a local college or university. You want to make sure the tenant can make the payments, but not many can because they’re full time students. In this case, you want a parent or other adult who will verify their income and credit information and act as a backup or even a primary payee.

You want to have your attorney draw up the proper language in the lease agreement and draw up suitable authorization forms that allows you to check the credit and verify income of a guarantor but that’s easily accomplished. Even if the tenant isn’t a full time student there will be times when you want to lease one of your units but there is something you’re just not comfortable with. Try adding a guarantor onto your lease application. Add a little peace of mind to your monthly cash flow.