I got fired from a listing last month. The property was a real challenge. The building was in tough shape and the curb appeal didn't light anybody's fire. Interior mechanical systems, roof and just about everything was decades past replacement. I took the listing as I had a good relationship with a now deceased family member. But my listing relationship was terminated and another broker whom I consider a friend got the listing. I consider my former client to be a classy individual and I harbor no hard feelings.
With a long track record and plenty of experience gaining and losing market share, losing one listing isn't going to throw me into a depression or force my family to skip dinner tonight. However it is the equivalent of a check engine light coming on my business dashboard. I worked hard on the listing, I cold called on the listing, I showed it. But I didn't spend enough time with the client this spring and summer as I was busy selling a lot of real estate. So in a sense practically and figuratively I dropped the ball. I should have been more creative. I could have controlled this outcome.
Your car usually doesn't break down without warning. Usually there is a warning sign or a missed scheduled maintenance item. Tires, timing belts, water pumps get old and need replacement. Oil needs changing.
Health usually doesn't disappear overnight. One typically stops exercising, eating well, and loses discipline long before weight gain and issues become apparent.
Who cares? What does this have to do with real estate investing?
Your properties do not suddenly lose value overnight. Tenants do not leave without reason. Here are some practical warning or check engine lights that will flash on your properties below. If you pay attention and fix problems before they eat you alive, you will be free to look for new opportunities.
-Tenants start leaving
-Dips in revenue
-Repair costs increase
-You stop showing off the property to out of town relatives
-Building vacancy rates are higher than market vacancy
-Capital improvement are skipped in good years
-Roof starts leaking
-HVAC stops working
-Vacancies get fewer showing than the past
-Rents have to be dropped to do deals
-Property managers/brokers pass on the opportunity to work with you
-Current tenants complain of a drop of business
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