In today’s ever-changing economic landscape, it’s essential to equip yourself with the knowledge and strategies to protect your investments, especially when it comes to rental properties. Whether you’re a seasoned property manager or a new investor, the challenges posed by a recession can be daunting. That’s why we, at HTSI (Houses and Then Some Inc.), are here to guide you through the process and share our top five tips to recession-proof your rentals.
Build Strong Relationships: At HTSI, we prioritize building meaningful relationships with our tenants and investors. If you are managing properties, you know that how you interact with people, greatly determines your success. When you take the time to understand and empathize with your customer, you can make a huge impact on how successful your rental business becomes. By truly getting to know each person we interact with, and providing personalized support and assistance, that exceptional customer service ensures satisfied tenants who are more likely to stay and pay rent on time. In fact, our average tenant at HTSI stays for an impressive 2.5 years.
We go above and beyond to care for our customers. We are committed to our tenants. We are committed to our investors. You have never worked with a company that cares the way HTSI cares.
Offer Incentives: Everywhere you go, you see an increase in cost. It isn’t any different in the rental industry, however this is increasing consumer debt. A lot of our neighbors, friends and loved ones are going to have a hard time finding housing that they can afford. During a recession, it’s essential to attract and retain quality tenants. Consider offering incentives such as first month free, rent discounts, flexible lease terms, or upgrades to entice prospective renters. At HTSI, we understand that tenants are looking for great deals, and by providing attractive incentives, you can stand out in the market.
Seek Professional Advice: We work with many different investors and each one is at a different stage in their journey. The common thread is that they all have times where they need support and not just any support, the support of a proven professional. Consulting with real estate professionals, property managers, or financial advisors who specialize in rental property investments can provide valuable insights and guidance. HTSI has a wealth of experience in the industry and can assist you in making informed decisions that will help protect your investments and grow your business, during any market.
Pay Attention to Your Pricing (Mindset): Cash flow is vital in the rental industry, and understanding that basic housing needs never go away is key. By ensuring you can cover your expenses, you can keep your property rented even during challenging times. At HTSI, we encourage setting rents at a reasonable level that allows tenants to comfortably afford their monthly payments, fostering low turnover and high occupancy rates. Right now, we are seeing big companies hiking rates as high as a 25% increase. Avoid holding out for top dollar, as it may result in longer vacancies and increased turnover.
Prioritize Property Maintenance: Maintaining your properties to a high standard is essential for attracting and retaining tenants. Regular upkeep helps minimize costly repairs in the long run and ensures that your tenants feel valued and comfortable in their homes. Depending on where your home is located and the needs of the specific property, you can often pull in service providers to support you with these tasks.
Flexibility is crucial when navigating a recession. Be prepared to adapt your strategies, adjust rents, or modify lease terms based on changing economic conditions. At HTSI, we understand the importance of staying nimble and are ready to assist you in making necessary adjustments to weather any economic storm successfully. If we can give you advice or support you in any way, please reach out and someone on our team will be in touch.