Don’t Be a Desperate Housewife (or Landlord), Just Push the Right Buttons

 

“Desperate times call for desperate measures.”

(Hippocrates)

 

Typing the word “desperate” makes me think of the old TV show, Desperate Housewives.  The story centered on four suburban women who were neighbors.  They found themselves making risky choices in order to look good, be fulfilled, and live the lives they thought would make them happiest.  This made their lives hectic and drama-filled.  And it also made it one of the most successful shows on TV for its 8-year run. 

 

However, no one really wants to live the way they did; it may be entertaining to watch, but it’s not peaceful.  Desperate is not desirable.

 

Desperation can elicit hopelessness and cause knee-jerk reactions:

 

I never think anyone is going to marry me!  So I’ll lower my standards and date anyone and try to make it fit. 

 

I don’t have any money and lots of debt.  I’ll rob a bank.

 

We need to win a championship this year or the fan base will be calling for my head.  I’ll trade away future draft picks, get a marginally better player now, and hope it works out.

 

We see it in all walks of life in many different situations.  Desperate situations make people feel that they have little choice but to make hasty and risky decisions.  And these decisions generate results that usually share one common trait- they are poor.

 

For landlords, they typically begin to feel desperate when their rental properties are vacant and they need tenants to move-in and start paying rent.  Things look bleak as time rolls by and there has been:

 

1. Financial bleeding: mortgage payment, management costs, utilities, lawn mowing
2. Vandalism and/or squatting while vacant
3. Only substandard applicants applying

 

It’s tough.  There is pressure on landlords to accept the first person that has the deposit and first month’s rent to put down.  “Just move in quickly, please!!  We need this off the market to get the rent coming in!”

 

As a Charlotte property manager, we are not immune to this either.  We get some version of this at times:

 

Aren’t you the professional??  Why is my property empty? What does your marketing look like?  It doesn’t seem to be working, bud!!  I could do better than this myself!

 

Desperation can take hold… And it takes discipline to stick to the fundamentals and not succumb to the pressure. 

 

When a property has sat on the market for longer than expected, the key is not to panic!  Slow down, take a breath, and push the right buttons:

 

If there are no showings of the property:

1. Double-check the marketing, add/replace pictures, make sure the home is coming up in on-line searches.  Then see if any showings happen.  If not, go to step #2.
2. The price is too high.  Lower it ASAP.  Prospective applicants are not seeing the value on-line versus other homes.

 

If showings are being generated:

1. Ask people who have seen it why they are not filling out an application.  It will usually come down to some cosmetic issue.  Take care of the issue!  Note: Some “cosmetic issues” are personal preference- if it is not a major flaw and only one or two people comment on it, it might not make sense to address it if it is costly.  If almost everyone mentions it, it either needs to be fixed or the price needs to be lowered (or both).

 

I remember we had a large house on the market that “desperately” needed work.  We did not want to pay for it (it was going to cost a lot to get to market shape) and we were hoping we could slide by with one more rental cycle before ordering the major (cosmetic) fix-up.  We went a few months with several showings, but no approvable renters from those who filled out an application.  Most non-applicants who visited the home cited a few issues they wanted addressed.  What to do?

 

The easiest way path is to give in to the desperation, roll the dice, and approve a risky tenant.  In contrast, experienced landlords will reject substandard tenants, double-check the marketing, fix any reasonable home repair issues, and lower the price.  It’s better to wish you had a tenant than wish you didn’t.

 

Don’t fall for the feeling of desperation and press the panic button!  Stick to the fundamentals and your future self will thank you for dodging the money/time/emotional sinkhole of the eviction process.  Don’t let yourself become another desperate resident of Wisteria Lane!

 

Happy Landlording!