The Importance of Property Screening and Management

[Corby Goade]

So many of us, especially newer investors, agonize over the underwriting of a deal, and rightly so. However, often very little thought is given to the screening and management process and that is evidenced here in the majority of the posts. 

I'd go as far to say that screening and management may have MORE to do with the performance and success of an asset than the underwriting. Time is forgiving when we make some errors in underwriting, much more forgiving than a tenant who destroys your property and does not pay rent for six months while you are trying to figure out how to get them out. 

Curious what newbies and some of us older investors think about the topic. 

[Nathan Gesner]

Quote from @Corby Goade:

Real estate is a forgiving asset. Most investors don't buy the best deals, but they hold onto them long enough that the market erases their mistakes.

Bad tenants, on the other hand, can completely erase the benefit of even a good investment.

Both are important, but proper screening and management of tenants is more important than underwriting.