A recession is one of the hardest times to be a rental property owner. This is even more of a truism when the property you happen to own and rent is a condo that is subject to the additional rules which govern community living in the D.C. area. These additional restrictions you must grapple with when you have a condo for rent in D.C. put you in a difficult position when attempting to manage your continued success, keep communication strong, and triage any partnerships you've developed to assess your next steps as an investor.
As a note: This post is not a substitute for proper legal counsel. When in doubt, it's best to reach out to the local experts at EJF Real Estate Services or to obtain guidance from a skilled attorney.
There exist a great many benefits to working with a skilled and well-established property management partner to guide your actions during this time. You may have hesitated in the past when you considered working with an expert due to the perceived cost involved. However, when you have a condo for rent in D.C. during a recession, the value of a property manager's expertise becomes readily apparent.
Property management companies bring expertise, knowledge, and on-the-job experience to the table. All of this put to work for you enhances your peace of mind and ensures your ability to maintain a successful rental.
Guidance from a property management partner extends beyond your rental home: it can be equally applied to any plans you intend to develop to respond proactively to a recession or other crisis.
When you think you have everything sorted out as a property owner, that's generally when you get thrown a real estate curveball. While there are often minute changes to the economy that signal a recession may be on the horizon (think inverted yield curves), most of these 'tremors' are so small that recessions often become black-swan events that take property owners by surprise. Contingency planning gives you the advanced preparation in place you need to pivot in a downturn.
We've already addressed some of the items every property owner should include in their planning in one of our previous articles. Starting there is a great way to maximize expert insight if you choose not to work with a property management professional. However, we still recommend that you seek out real-time guidance when preparing your response to a recession or other disaster that directly affects your income.
The goal of any business owner—recession notwithstanding—is to be proactive. You need to always be one step ahead of what is going on in the world. If you see the signals of a recession lurking in the wings, or unfolding events are worsening, try to make a calculated move ahead of time that will assist you in your efforts.
The last thing you want to do during a recession is to react. You want to make your property recession resistant! A reaction is an admission that you are already behind. This can put you in a strained position financially as a property owner, so make it a personal goal to prioritize proactive thinking and action.
Outwardly, owning a condo for rent in D.C. during a recession is a challenge for many reasons. You may face the struggle of navigating temporary legislation concerning rent collection and evictions as your renters are losing their jobs. The ability to adapt during this time is crucial—or to bring in the aid and support of someone who can.
You can start now by considering some of the insights we provide with our Collecting Rent in a Crisis Handbook. As always, we're here for the D.C. community during these tremendous times of change should you need hands-on guidance.