Is your real estate portfolio recession-proof—or at least, recession-resistant? Take it from property management in Seattle: investors can't count on a steady, positive economy year after year without any fluctuations. What happens to your investment income when we experience an economic crisis that makes it difficult for your residents to pay the rent—or worse?
Your long-term financial goals depend on how you navigate the good times—and the bad times. We'd argue that how you weather the most challenging moments can make or break your investment property success. If you made it through the recent COVID-19 economic collapse, you've had a taste of how challenging it can be for landlords to remain successful during a recession.
Don't get caught without a way to maintain your financial momentum! A recession can happen again—at any time. Follow our tips to protect your Seattle rentals and stay successful during a financial crisis.
Please note: This article is not a substitute for legal advice. For up-to-date information and guidance, reach out to your attorney or to expert property management in Seattle!
You Need a Property Manager
There's no more straightforward way to say it: expert property management helps real estate investors maintain success—no matter the economic conditions.
The market or economic fluctuations do not rattle us. Having a property manager by your side before a recession hits means you already have a plan in place to protect your investments.
We've Seen It All
We concede that there might be a situation or two that's new for us—but your professional property manager has seen (and dealt with) a vast array of investment property ups, downs, and everything in between.
- We already know how to manage residents and your cash flow to minimize the financial impact on your long-term income through the duration of a recession.
- We continuously watch the market and economic conditions to help our property owners prepare for leaner times. At the first signs of trouble, we can jump into action with plans to adjust processes, communications, and address resident needs.
There's No Time to Waste
What happens when there's little-to-no indication that a recession is on the way? No one predicted the significant financial impact of COVID-19. Social distancing protocols and sudden income loss quickly became a reality.
- When a recession hits, there's no time to waste to maintain success with your home rentals, Seattle landlords!
- Investors who can respond and adjust operations quickly have a better chance of salvaging income, responding to residents, and maintaining good relationships beyond a recession.
- A professional Seattle property manager makes that happen.
However, during a recession isn't the ideal time to start looking for a property manager. To get the most out of your real estate investments, you need professional property management before, during, and after challenging financial times.
Always Have a Contingency Plan
Your "Plan A" might not work as planned during a recession. Operating "business as usual" took a back seat during social distancing. Were you prepared to operate remotely and maintain your level of service for your residents?
By now, you've adapted to working in a contact-less environment and addressing resident needs under very different working conditions—but how long did it take you to map out your social-distancing "Plan B?" How much time and money did you lose trying to find the right ways to communicate with residents and help them pay the rent?
Planning for a Crisis Is Smart
Property investors can't maintain success with the belief that bad things won't happen. Real estate investing is a long-term gameplan—but one or two bad months of lost income can ruin your financial goals.
Work with your property manager to develop a crisis plan. With a plan in your back pocket, you can quickly respond and mitigate your losses at the first sign of recession. Know how you will:
- Communicate with residents and encourage them to pay the rent
- Have enough cash reserves to cover expenses
- Deal with difficult residents until you can enforce penalties (or eviction)
If you never have to put your "Plan B" in place, that's fantastic! Having a crisis plan in place before you need it helps landlords stay successful during challenging financial times.
Be Proactive—Not Reactive
When the economy becomes uncertain, your residents will look to you for direction about rental payments and routine services. The best way to help them value you as a landlord is to be proactive during a crisis.
From communicating right away to having payment plans and other resources available as residents need them, landlords build better relationships with residents during a crisis when they have a ready response.
Property Management Means Success in a Recession
Protect your home rentals with property management in Seattle! No matter the economic conditions, the best way property investors can navigate their way to long-term financial success is to work with a professional property management partner.
Real Property Associates can help protect your investments before, during, and after a recession. Our processes quickly adapt to address current conditions while minimizing the financial impact on your portfolio. Learn more about how we do it! Get our free resource, the Collecting Rent in a Crisis Handbook.