“There is a shortage of quality rental housing.”
Fist pump time if you’re a Landlord or Investor.
That’s the overall opinions of some of the top managers of large, institutional portfolios of single family residences (SFR). Here’s the link to the brief article: http://nreionline.com/single-family-housing/top-sfr-owners-plan-grow-2017
It indicates, if demand for SFR’s remains stable, that rent prices should remain solid and absorption rates should be strong. What it also, indicates however, is that these same large institutional portfolios have new targets–YOU.
As a smaller operator of SFR’s, you are seen as the enemy.
You’re the competition.
You’re who they want to gobble up or squash out of the rental game.
So here’s the question for today:
These portfolio managers have the spare cash, the human resources, the advanced technology, and the patience to crush you. How do you plan on continuing to compete against them?
Go Guerrilla Warfare style against them. Here’s 4 simple ways to Go Guerrilla:
- Use your size to your advantage. You can make instant changes to your lease agreements, property management agreements, and other supporting documents to react to local market conditions.
- Get intimate with your tenants. Know who they are and what are their emotional hot buttons so you can keep your tenants longer, keep your vacancy lower, and stockpile your cash. This close connection with your tenants is something the big guys can’t easily train their staff to do.
- Get a good working relationship with your key vendors. This is the variant of Harvey McKay’s idea of “Dig your well before you’re thirsty”. One of the biggest reason tenant’s don’t renew leases is a perception that the landlord doesn’t care about maintenance issues or is unresponsive to their issues. Don’t give away easy brownie points here. Get your vendors in line so that they can jump on the issues like a duck on a June bug.
- Network within the community where you operate and also where you want to expand your operations. You’ll learn about upcoming hot property deals way before the big guys learn about them. You’ll also understand how larger economic development issues can positively or negatively affect your positions.
This year will be another awesome year to be a landlord or investor in real estate as long as you know your enemy, know your friends, and can survive.
Here’s to your continued Financial Freedom!
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