Being a landlord is rewarding when the economy is booming, and you generate plenty of income from your rental properties! Renters pay the rent on time, you have no vacancies, and watching that monthly passive income turn into long-term wealth is worth the time and energy you put into managing your properties.
Then, a recession hits. Tenants can't pay their rent, your properties need repairs, and you're not sure you have enough cash reserves to make your mortgage payments and hang on to all of your investments. Your long-term financial plans might have to take a back seat while you struggle with your rental properties in a financial crisis.
It doesn't have to be that way! From our experience as property owners, we know that being a successful landlord—even during a recession—is possible. If you don't already have expert guidance from Salt Lake City property management professionals, follow these tips to maintain your success—no matter what's happening with the economy.
Hire the Right Property Manager
You don't need "a" property manager. You need the right property management partner.
Only the best property managers can help lead you through a recession with minimal impact to your long-term financial goals. Many DIY landlords love the income, but without making a career out of managing rental properties, a widespread financial crisis can rattle your resolve to stick with your properties through tough times.
We've Been Through It Before
Property managers have made a career out of managing properties—and we don't mean doing the bare minimum of making sure you have tenants, and a monthly rent check in your mailbox every month. At Reeder Asset Management, we pride ourselves on being investors ourselves. We know how it feels to be personally tied to the success of a rental property.
Expert property managers spend all day every day working hard to make sure your investment properties generate the profits you need to reach your goals. We're always looking for ways to improve our services because we know this benefits you as the property owner.
We know this can be challenging in a recession—but we've been through tough times before! We still believe that owning rental properties is one of the best, most stable ways to benefit from long-term passive income. This is true even during a recession—but it's not entirely "recession-proof."
We Have a Plan
Professional Salt Lake City property management always has a plan! No matter the economic environment, we can jump into action to protect your investments. If you've struggled through the most recent recession, expert property management is the best way to regroup and get back on track with your rental properties.
You Need a Plan
We have a plan—but do you? Property investors always need a contingency plan to get through a crisis. You hope a recession never happens—but if you're a serious investor playing the long-term investment game, you can't survive without a crisis plan.
Successful investors make it safely through a recession with:
- Enough cash reserves to cover mortgage payments when tenants can't pay the rent.
- A plan to work with tenants on payment plans during tough times.
- A way to handle Professional Tenants during eviction moratoriums.
An expert property manager can help you put a contingency plan in place. If you never need it, that's great! However, it's better to have a plan that you can quickly implement rather than get caught without a way to make it through a recession.
When a recession becomes a reality, it's time to take charge. Being proactive (instead of reactive) puts you in a better position to minimize losses to your long-term income.
Your tenants need to know what to expect from you as a landlord when they face income or job loss due to a recession. Taking quick action to implement your plan and communicate with tenants goes a long way in building lasting relationships with your residents.
Don't make tenants wait to hear from you. As soon as recession conditions become a reality, reach out and let tenants know:
- Available local resources to help with rental assistance or food shortages
- Any changes to your operating protocols or hours
- How you're handling rental payments
- How to reach you.
This kind of proactive response can help your residents feel like more than "just" a tenant! When they know they have a proactive landlord, tenants are more likely to renew their lease.
Success During a Recession With Expert Property Management
Dealing with properties and tenants during a recession can make any landlord want to get out of the investment property business. However, you don't have to lose your investments or your income when you have access to the best Salt Lake City property management to guide you through a recession!
We know how hard it is for landlords to maintain success during challenging financial times because we're investors, too! This gives the Reeder Asset Management team the experience you need to stay successful—no matter the economy. Collecting rent is one of the biggest challenges you might be facing, and we have a plan for that. Learn more with our free resource, the Collecting Rent in a Crisis Handbook.