Even in times of uncertainty, some things still remain the same. While we don’t yet know the entire scope of the pandemic’s effects, two things will never change: good business practice and the need for housing. Many real estate investors in Spokane are keeping up with the tough times because they have incorporated a business model that will thrive in any market. If your model isn’t working now, there are things you can do in times like these to emerge stronger and better-positioned than ever. Learn, adapt, and focus on what you can control.
Always analyze each property, not your entire portfolio. If any property cannot cover its own expenses without the help of other properties in your portfolio picking up the slack, that should be addressed. You would rather have a portfolio of high-performing properties even if it means owning fewer. This methodology works during tough times like these. Plus, it yields less stress, fewer headaches, and ease of management.
Filling vacant properties right now may not be easy, especially in terms of abiding by strict social distancing measures and various stay-at-home rules in place across different states and municipalities. To combat this problem, many Spokane landlords are doing live virtual tours of their vacant units.
You can do this over such tools as FaceTime, Zoom or Skype, and it will give you the opportunity to point out the custom cabinets, new appliances, or amazing walk-in closet. It will also allow you to get a feel for the prospective tenant and to answer their questions in real-time.
If you really want to get your units rented quickly, you might also consider offering an incentives like 2 weeks or a month of free rent. You could also waive the security deposit or offer a free parking spot for a year.
Unexpected times bring awareness for things we might not have noticed before. You can allow the current crisis to break your business or you can take note of what you can control and what you can do differently, and better. Take lessons, learn from them, but do not get discouraged. The need for housing is here to stay. And since real estate investors can fulfill that need, positive opportunities remain.
Most importantly, leave plenty of room margin-wise when things are good as this will get you through bad times as well. No one can ever predict what will happen in the future, but real estate investors can make sure each property has the right fundamentals in place. Focusing on what you can control can help you get through this.
At CIVIC, let us be your partner in determining how best to achieve your Spokane real estate goals even in times of uncertainty by giving a call at 425-385-9014 to learn about your options.
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