The political silly season is almost upon us, which leads to the question we’re all asking ourselves: how does this affect my apartment investments! We can find indicators to point in all directions but we maintain a point of view that we are optimists. We know there is considerable upside potential given the continued strength of today’s economy, but dark clouds loom on the horizon and unprepared
investors get annihilated when the tide turns.
How do you know your market will hold up in a downturn? What are your contingency plans for job losses and vacancies? Where will your tenants come from when no one’s hiring? Seems like an unlikely scenario today, but we lived through it not long ago. It will happen again.
We see market reports that show vacancy and rent trends through the 2005-2010 time period. Some markets got clobbered but others incredibly did not. Look for those markets, research those reports. Check them out at Berkadia, BlackCreekGroup, IRR.com, HousingAlerts.com, and most of the big brokerage web sites. And keep investing!