Some weekend when you’re lookin’ for something to do, grab a clipboard, a legal pad, and a pen, then head over to one of your income properties. Start at ground zero and pick a direction to start walkin’ and talkin’ with tenants in the neighborhood. I can almost guarantee an eye opening hour or two. I’ve had clients do this for years as a hands on exercise designed to show them all the things they didn’t know about the area, and all the misconceptions they may have had.
One client called me up laughing. Seems he came upon his high school sweetheart living a couple streets down. Ya never know what you’ll find and/or learn, but you’ll do both if you’re focused.
Here are some suggestions you may wanna incorporate.
1. Understand exactly what info you’re trying to unearth. I’d say rental amounts plus the physical makeup of rentals compared to yours is enough for this outing.
2. If there’s a manager, or someone who at least looks like they may be in charge, talk with them first. If you’re honestly straightforward with your purpose, they’ll almost always go outa their way to oblige. That’s been my experience since forever.
3. Make copious and highly detailed notes. Don’t rely even a little on your memory. After awhile they tend to blend together. Make sure to have each tenant’s address above all your notes on that unit. If you’re able to get in, even better. Tip: Get in ‘n out quickly, and thank the tenant profusely. Down the road it may be helpful if they remember you.
4. If a unit offers more or less what yours does, but rents for a lot more, be sensitive to why. Is it a half bath extra? More modern kitchen? 125 more square feet? A private garage? Pay attention.
Don’t mistake this as a highly detailed ‘how to’ on rent surveys — it’s far from it. That’s another post altogether, and almost always more effective conducted by a pro. Still, that part of the business isn’t rocket science no matter how ya slice it. It’s boots on the ground grunt work that often yields 24 carat nuggets. I’ve made incredible deals and dodged some ugly bullets as a result of a well timed, and thorough visit to the neighborhood in question.
BawldGuy Takeaway: Without exception — literally — nothing has been brought to the table technologically that has even come close to replacing human boots on the ground with a mission and an attitude. Nothin’. This is one area where eyes ‘n ears and some thoughtful questions will give you more insight and useable intel than you’ve had since you bought your units.
I’d love to hear what you found. Send me a note to let me know what surprised you, or better yet, what you learned was different than what you ‘knew’ before.
If you have more questions, give me a buzz, as I’d love to hear about your experience out in the world. 619 889-7100 will find me. Have a good one.
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