Updated August 4, 2022.
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 company in Seattle!
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 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.
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.
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.
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?
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:
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.
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.
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.