08 Aug How to Recession-Proof Your Rental Property
We’re continuing to live in questionable times where no one could have guessed how much the pandemic and economy would affect our lives. While one can’t be absolutely certain, we may in fact be on the verge of a potential recession, with real estate and housing possibly taking a large hit.
As a rental property owner or landlord, the news isn’t all completely bad. There are still many ways for your rental properties to have success and continue to grow even when in the midst of economic hardship. Here are some ways that you can continue to have success as a landlord or rental property owner during a recession.
Stay on the Offensive
In hard times, staying ahead of and anticipating issues before they occur can be difficult. Try to take a step back and imagine what is possibly to come. By doing so, instead of being defensive and playing catchup when a situation arises, you have already planned ahead and thought about the steps that you will take when faced with the problem. This will help your rental business continue to be successful even as things change. Here are several more ways to help keep your rental properties successful in the event of a recession.
Prioritize Keeping Your Tenants
The hardest part of being in an economic downturn as a property owner is losing your renters. It should go without saying that your biggest priority is to not only keep your tenants, but to keep them happy. There are many ways to do this, by making small improvements or upgrades and timely correcting any maintenance issues to possibly thinking about not increasing rental rates.
Currently there are a lot of renters who are jobless. When going into a recession, it is important that you consider their current situation and have compassion when it comes time to collect their rental dues. If you find it difficult or feel uneasy doing so, having a property management company, like Sound Choice Real Estate, working for you can be a positive and helpful tool. We can continue to keep your tenants safe and happy during potential tough times.
Advertise Like a Pro
Even with hard work during the coming months you will still most likely have some tenants leave and have vacancies to fill. When these properties need to be filled, it is better to be one step ahead and have your advertising ready to go.
- Be sure you know which works best for you – print ads, social media, online listings, classifieds – so that you can target your potential new tenants quickly
- Bring attention to any and all items that make your property stand out – location, upgrades, size of the rental, competitive pricing
- Let them know why your property would be the best place to have them call it their home
Have a Contingency Plan
Even as you prepare and plan for every possible scenario, you need to realize that you can’t actually plan for every possible contingency. If the past couple of years have taught us anything, this would be it. Still, the only way to put a contingency plan in place is to know and develop some steps towards what you’re planning for. A recession seems overwhelming and unexpected, you can still plan and prepare to take it on.
Have Variety in Your Properties
When the real estate recession hit in 2008, it hit the housing market hard but barely even touched the rental property side of it all. When a recession happens, people will stop buying and start renting, which gives you, as a rental property owner or landlord, an extra boost. When less people can afford to buy a home, more people turn to renting. The more variety you have in terms of different types of rental properties, the more likely you are to keep each one filled with tenants through all types of economic conditions.
Hire a Property Management Company
One of the best and easiest ways to make sure your rental properties are managed well during a recession is to have a property management company like Sound Choice to work for you. A professional company will know and understand the difficulties your properties will face. From pinpointing rental property pricing to screening the best possible tenants, our team has all the resources you need to continue to help keep your rental properties filled.
Don’t Have Time to Deal With Marketing Your Rental? Let Sound Choice Real Estate Handle it!
If you’d like some help from our team of professionals at Sound Choice Real Estate please Click Here or give us a call at 850-389-8533 to Contact Us.Sound Choice offers full-service property management in Niceville, Destin, Crestview, Fort Walton Beach and the surrounding areas. We are dedicated to providing a maximum return on your investment and eliminating hassle and stress.