Unless you’ve been on vacation in Bangledesh or binging too much Netflix these past few weeks, you may have noticed a trend in real estate:
….it’s quiet. As in very very quiet. Showings have slowed dramatically on properties for sale and properties for rent. Offer price to list price ratios have dropped a noticeable amount. REALTORS are no longer bragging on Facebook about their latest listing sold in 4.2 seconds with 15.7 offers.
As in the market has shifted.
News Flash: It does this.
In fact, the market shift is a result of such a good, long, landlord friendly rental market. The pendulum is simply swinging the other direction.
The question, as illustrated by the cover of this month’s National Association of Residential Property Managers magazine is therefore appropriate. “Does your company have a plan to navigate a rental market slowdown?”
Questions to Consider:
“Are you prepared for the shift?”
Real estate investing isn’t just about buying and holding properties….sometimes it is about knowing when to sell a property.
“Is it time to consider selling a rental in your portfolio?”
Other times, it’s about knowing when to reassess the investment for maximizing cash flows by minimizing vacancies. When the number of homes for rent starts inching up, perhaps it’s not time to keep cranking up the rent increases of 7% per year on good tenants. That’s the dichotomy involved–knowing when to hold and when to fold.
“Do you know where your maximum rental value lies for each property incurring premature turnover?”
Good property management is also critical to ensure the actual asset is fully maximized in terms of condition and appearance, both to existing tenants and new prospective tenants.
“What can you do to make your rental look the best without breaking the bank?”
Finally, just because the pendulum is currently swinging away from Landlord’s favors doesn’t mean the market is going to Hell in a Hand basket. It might be a short swing and then swing right back into sunshine and rainbows for landlords.
“Do you know what the early shift signs include so as to not leave money on the table on your rental rates?”
5 simple questions with answers that might not be so simple to answer with confidence. If you’re looking to add confidence to your real estate, perhaps a phone call or coffee meeting is appropriate in January.
To schedule either, simply click on this handy dandy calendar link and we’ll get you squared away: https://calendly.com/danbaldini
Until then, here’s to your Financial Freedom!