“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:
- Financial bleeding:
mortgage payment, management costs, utilities, lawn mowing
- Vandalism and/or squatting
while vacant
- 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:
- 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.
- 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:
- 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!
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