Tips for Keeping Your Rental Investments Healthy During a Recession
You see the writing on the wall of the global economy, and you can’t help but wonder how the current recession will impact your real estate assets.
How exactly can you keep your rental investments healthy during a recession? Is it even possible?
The good news is that you can indeed keep your rental investment in tip-top shape, no matter how the economy is performing. You just have to be a little flexible.
Choose Your Tenants Wisely
It’s essential that you target the best tenants for your rental properties during the recession because your success relies on regular rent payments and reliable, long-term renters. When a potential tenant completes an application, verify their income to ensure that they will be able to pay their rent on time. Follow up with their references to determine if the applicant is responsible.
You’ll know the individual is a good fit if they have a history of taking care of their property, have a regular income, and plan on staying in a unit for at least 12 months.
Look at Your Rates
Consider also offering longer leases and even lower the rates for your rental investment. This can be instrumental in securing income for yourself and riding out the recession. As an investor, you might want to test a variety of pricing strategies during this time. That might even include temporarily waiving rental fees for tenants who are struggling in the failing economy. As you show your flexibility and support, good tenants will be encouraged to renew their lease when it’s time.
Also, consider throwing resident events for apartment communities. This will further entice your tenants to stay with you through the economic thick and thin.
Save, Save, Save
As you navigate the recession, make sure you have money stowed away for a rainy day. The truth is, you may not be able to keep all of your rental investment units full at all times. In addition, you may need to cough up money for large, unexpected building repairs. For this reason, it is paramount that you have plenty of cash reserves. Avoid borrowing from a lender to install a new roof or new furnace, for example.
As a general rule of thumb, if you run your rental investment property well, you will keep your tenants, and the rental income you receive will help you to weather any economic storm. During recessions, people often cannot afford to buy homes. So, your rental properties will likely be enticing to those looking for housing.
Also, rentals today are in demand, whereas the supply isn’t great. This means rent prices are on the rise, which is great news for landlords going through the current recession.
Learn How to Succeed as a Landlord in Today’s Economy
Now couldn’t be a better time to hold onto your rental investments. If you manage your real estate properly, the current economy will likely be very kind to your assets—perhaps even more than it is when we’re not in a recession.
Check out our Apartment Syndication School for the latest tips for real estate investors, and discover more about how to keep your rental investments thriving more strongly than ever in the months ahead.