Mendell Gosnell, a property manager in Salem, OR, argues that rushing to fill a vacancy at the lowest rent creates long-term problems. A short vacancy beats a bad tenant. Screen carefully, set market rent, and keep the property in good condition.
A few reasons why the right tenant is worth the wait. That's the subject of today's video blog. The right tenant is worth the wait. So, I get it, owners are anxious to get their property rented in record time at the cheapest price and get the best tenant in there. That's what we're working for. However, with experience, we have in some cases learned the hard way that patience can pay off. So you definitely don't want to skip steps. You want to make sure that you are putting your best foot forward when you put your property out there, make sure that the curb appeal is good, you got a clean, safe, habitable property, you're crafting a good ad that puts your property in the best light to attract quality tenants, and then you screen— trust but verify— and make sure that you do your due diligence to get the best tenant that you can. And we understand that the longer the vacancy is, it affects your cash flow, it affects the value of the property long-term if you're looking at capitalizing seeing that and selling it. But in regards to finding the right tenant, don't, don't skip the screening. Do your due diligence, take the time. It's sometimes painful when you have to go through that process of waiting, find a tenant, screen, and then you got to deny them. But it is better to deny a bad tenant than to take your chances and get burned. Oh, you got to look at the market. Objectively, unemotionally, and that is again one of the benefits that we feel like professional property management does a great job in. Not that they lack compassion, I think that a good property management company should have a lot of compassion towards the, the tenants, but there are some bad tenants out there. We need to make sure that we're focused on getting the best tenants for your property. So ask for a reasonable rent. Don't be unreasonable. Make the necessary repairs. If you don't, you could possibly fall in that slumlord category, which you don't want to be in. And it's relative based on the property and the location, you know, but make it appealing. Make it the best in the neighborhood. And at minimum, our standards: safe, clean, and habitable. Gotta have that as a minimum. But the more that you can do, you're gonna entice better tenants. And depending on the market, in a slower market you're gonna have to provide more incentives for attracting tenants to your property. Trusting your property management company, it really does come down to trust and knowing that they're working hard on your behalf. And if they give you feedback and they say, "Hey, we had to deny 2 people," They're doing that in— for you, in your best interest. And so if you reverse that and say, "No, let's reduce my screening criteria," unless they're recommending that, you need to hold fast and be patient. It's going to be the best in the long run. So being prepared to ride out a little bit of vacancy is going to pay off in the long run. Hope that helps give you a little bit of insight into what you can do to attract good tenants, and then again, why we think the right tenant is worth the wait. And again, thanks for watching and happy investing.
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