There is a lot going on in the world right now. The stability we had just six months ago seems to have completely evaporated. Covid is still out there with all of its economic issues and now there is social and political unrest. How long will it all go on? Will things flare up again? Will they get worse? Will the November elections bring relief or more issues. Things look pretty uncertain right now. It is difficult to say when we all might return to some sense of stability.
We landlords, despite all that is going around us, can and should aim for stability in our our lives and within our own businesses. We have to. We have to strive to be a stream of calm in the chaos. It is simply the best way forward. What can you do to aim for stability? Here are some thoughts.
Know What You Can Control – We cannot control everything around us. Understanding that is the first step. Knowing what we can and cannot control will lead us to examine what we can control. We can, for example, control our expenses. We can also control the management of our properties. We can control who we let live in our properties and perhaps most importantly, we can control ourselves.
Control, or even just the appearance of it, is something that may appeal to many people right now. Aiming for stability by controlling what you can may attract better tenants, keep your good ones from moving on, and present a well run operation.
Work With Your Tenants – One major disruptor to our businesses is tenant turnover. To aim for stability you need to work hard at heading off this disruptor. The last thing any of us landlords need right now is a bunch of tenant turnover. Turnover is expensive and leads to unpredictability.
Consider if you would rather have a vacant unit right now? Will you be able to find a new tenant? Will these new tenants meet your qualifications?
Working with your tenants, talking to them, even helping them if need be, is a smart strategy these days. It allows you to work with what you know and keep some stability in your world.
Focus Your Limited Resources – Now is a good time to go over your budget with a fine tooth comb. Where can you trim a little? Are there items that you have forgotten about or let go a bit too long and do not use anymore. Can you find better rates? Can you find better service? Now is a good time to put your limited resources towards better management to aim for stability.
Keep Some Cash – Nothing can get one through a difficult time like cash. Yes, keep some in the bank but also keep some at home. ATMs may be disabled and banks may be closed due to civil unrest or economic conditions. You just never know. If you need to make repairs and cannot get access to your money for whatever reason, then you are adding instability to your business.
Keep Your Cool – When you lose your cool it’s over. No matter who you loose it with, be it your tenants, your lender, your contractors or the whole world, its over. You have to be the level headed person in these uncertain times to achieve stability. Be the reasonable one. Seek to understand and find solutions.
Kevin Perk is the founder and publisher of Smarterlandlording.com. He is the author of Advice From Experience To New Real Estate Investors. Subscribe to Smarterlandlording here. Contact Kevin here.
