The news is not all bad. 

 

Buy and hold  real estate investors are doing quite  well in spite of  the gloom and doom talk of higher interest rates and  higher prices.

 

And that brings me to  one of my most favorite subjects.  The metamorphosis of the humble tenant.

 

What makes today’s tenant so contrite and  pliable, yet kinder and gentler to deal with?

A market where prices have gone up;freezing him  out of homeownership. 

 

I can’t tell you how many tenants we have lost over the last five years because of  the easing of  credit which  aided them in the buying of their first  homes.

 

Even those that we thought  didn’t have “the credentials” managed to get the loans.

 

This was a new phenomenon that we really hadn’t seen before. (I work with my 81 year old Dad who has been investing for 50 years).

 

As we all know it all happened  because interest rates were at a 40 year low.  Naturally they didn’t stay there long.

 

The smart tenants got out and into their first homes fast while the getting was good.

 

Now the music has stopped. 

 

Here’s the point.  They have to do business with you now.  

They have to have a place to live and if you are a  buy and hold real estate investor  who has done your homework you’ve got the roof.

 

So what’s changed exactly?

 

Here are the 5 statements most likely  you will be  hearing  in such markets as Nashville, San Jose, Seattle, Salt Lake City, Austin, Portland, and yep, San Diego and San Francisco.

 

 

1.“How many people have been looking at this unit?”

Translation: “I’ll take it now because I know I don’t have that many choices. Nobody is giving any deals.”

 

2.“You mean it’s higher than it was last year?”

Translation: “Okay, okay, I’ll pay it, even though I won’t be getting that new custom built computer because of you.”

 

3.“You’re not going to give me a new carpet?  What if I don’t like it after you have it cleaned?”

 

Translation: “I know it will get dirty again just as soon as I move in but since you’re charging me a clean-up fee (only legal in some states) I wanted to make sure I get my money’s worth.”

 

4. “What if I don’t like the neighbors,  it’s too noisy, or that train passing through bothers me?”

 

Translation: “I’ll tough it out.  I know I will have to pay even more for a more  perfect environment that  almost totally  pleases me .”

 

5. “You won’t be able to get an air conditioning repair man out  here at a reasonable price on a Sunday afternoon?”

 

Translation: “Okay, I’ll wait it out until regular business hours.

After all, paying double for a simple repair  job  on a weekend that was probably my fault anyway ,since I didn't pay attention to the compressor freezing up, is not economically feasible. 

Besides, I guess you're old enough to remember when people didn't even have air conditioners.”   

 

See the  difference?

 

Believe me, we are experiencing these new refreshing tenant attitudes right now  with our properties in Nashville. 

 

These are good times for landlords.

 

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