Newman Asset Management Blog

UPDATE:For Apartment Operators,Boomeranging Kids More Bad News

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All apartment owners should take a look at the above article as it could have serious consequences for you in the coming year. As you will see noted in the article, many of your prime rental candidates are moving back in with mom and dad due to (1) job loss, (2) foreclosures, (3) general lack of funds, and (4) going back to school.As an apartment owner or operator, you need to consider this trend from two perspectives:

1. If this age group, 18-35, is one of your key rental groups, what can you do to keep those who are considering such a move at your place? Are they worth keeping vs. who you have coming in new?
2. If you have a good deal of “mom and pops” at your apartments, how are you handling or going to handle such a need (son/daughter needs to move home)? Can you make it a win/win for both groups?

No one can tell you what is best for your apartments…they are not there working day-to-day with you…but as you consider these types of issues you may want to keep a few things in mind:

• Everyone has trouble in their life at some point. If you have a tenant that has been good for you, it may be worth giving them some leeway until times get better. This is a tough call, but may worth the effort for someone who has been a good tenant.
• For those with mom and pops who have adult children needing to come home, can you make it work for all parties such that you gain in the long term through community news and word of mouth? Again, a tough call as you have to step out there first, but those that can help a community in a tough time usually end up with a bigger benefit in the end.
• Remember, most problems are solvable if all involved are willing to work together and stick to a plan.

Until next time…

Todd

Tags: apartments, Real Estate

This entry was posted on Tuesday, December 1st, 2009 at 11:52 am and is filed under Real Estate, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.