With the U.S. economy in a downward trend, people everywhere are wondering what will happen next. As we face a recession, business owners and the self-employed are struggling to determine what steps to take. Unlike what many feared, this recession is not similar to those of the past: because of a deadly virus, matters are more complicated. Businesses have been told they had to shut down, putting many people out of work. As a result, this had a domino effect: when people are out of work, they cut back on their spending—and they may get behind on their rent.
For rental property owners in Plano, this can create some hardships. You may wonder how you can maintain the success you enjoyed as an investor before the recession struck. If you own more than one investment property, your planning will be a little bit different than that of a solo property owner. Here are some insights we've gathered during our time as Plano property management professionals to guide you through these trying times.
Please note: This article is not intended as a substitute for the great legal advice of a skilled attorney or the expert services of a property manager. When in doubt, reach out to RentHub Property Management!
Know The Facts
Investors that are not up to date on the facts about the crisis and what is expected of you should always look before you leap into hasty actions. It’s critical to know what the facts are concerning the current legal landscape in Plano, Collin County, and Texas at large. You need to ensure that you follow the rules that property owners are expected to play by during economic fallout.
When you abide by these rules, you not only stay within the strict confines of the law: you protect yourself, your properties, and your renters. Most of your residents are currently stressing about their next rental payment under continued threats from Governor Abbott that we'll be going back into lockdown soon enough, so keep this in mind during your interactions with them.
Find Resources for Your Renters
If your renter's life is impacted by the recession, then it’s going to affect yours too. The best thing you can do to shore up your losses and maybe even gain a leg up is to find what possible resources are available and offer them to your renters. We already have some of these options posted here on our site as Plano property management that you can use as a first response before adding personal touches unique to Plano.
A great resource specific to COVID-19 is Aunt Bertha's "findhelp" tool. This allows you and your residents to input your zip code and find customized resources based on where you live in Plano for support paying bills, buying food, or receiving medical care. Equipping your renters with the ability to better pay their renter ultimately protects you as the investor, so it's smart to look out for your residents from the start when preparing how you'll face tomorrow.
Always Have Contingency Plan
What is a contingency plan? A contingency plan is a critical component of your business. It helps you in case of an emergency or disaster, much like what we’re facing right now. If you don’t already have one, it’s not too late to get started, and if you already have a contingency plan in the wings, now is an ideal time to review it if you find yourself struggling. Here are steps to get you started:
- Tap your resources: Find out where you can access help when needed.
- Identify your weak points: They say a chain breaks at its weakest link. Find that weak link and tighten it up.
- Create a draft: A draft of your contingency plan is an ideal way to get something on paper for review.
- Solicit feedback: Find someone, preferably in the business, to look over your draft and let you know their thoughts. This is a great time to consider pulling in the expert insight of a Plano property management provider!
- Make your plan final: This part of the process should be easy. Once you have the feedback, you can go back to polish the draft.
Be Proactive, Not Reactive
If you always end up reacting to situations instead of being proactive, you’ll be full of tension and stress. Plus, you're less likely to succeed in whatever your reaction is. Being reactive will have you running around “putting out fires,” so to speak.
A proactive stance has you taking steps to avoid the “fires" in the first place! It helps you be better prepared for situations that may arise when you are proactive. This means knowing when to ask for help and seeking out resources investors can turn to right now to stay profitable in the face of disaster. Being too proud to seek guidance when you need it is one way to sink a ship.
Work With Property Management
When you work with a professional Plano property management company to help you deal with the economic recession we are in, you are taking the ultimate proactive step. A property manager can be a big part of your contingency plan. They can manage the various crises you are facing, right down to rent collection.
Of course, if you're not ready to get in touch with RentHub, you can still turn to our excellent, free resources! If you are experiencing the challenges of being an investor during a recession, we recommend getting started with our Collecting Rent in a Crisis Handbook.