Just got back from visiting one of my properties, and spent an hour talking to the tenants about how they believe the neighborhood to be on the decline. Just before I arrived, there was a shooting right out front on the street corner. My tenant has been in multiple altercations with neighborhood kids, and they have also burned down a few vacant houses. There has been a convenience store that opened right in my backyard across the alley, and it seems to be creating a hotbed for unsavory characters right around my house. My tenants are unsure how long they'd like to stay, and are asking me to put them into another one of my properties. On the flip side, since I bought the place 2.5 years ago, values in this neighborhood seem to be on the rise. I even just put an offer in on another place a few blocks away on the nicer side of the neighborhood.
I thought I would come here for some advice. What would you do? I could hold the property for a little longer, see if the neighborhood starts to calm down a bit. My tenants are staying for now, but they are on month to month to keep flexibility. I worry I might not get great tenants like them back in that area.
Have you ever had a property neighborhood start to decline? Did it bounce back? What did you do? Did you make the right choice? I'd love to hear some stories.
do nothing. more tenants where they came from
Actually, it sounds like the neighborhood was already sketchy, if there were vacant houses to be targeted by arsonists. I wouldn't worry about the tenants so much as the long term viability of the house as an attractive rental. I'm not sure what I would do; it would depend on what I had in the house, what the profit margin was, how much turnover.
buy the neighborhood!
I would find out whether or not many of the other houses are section 8 (I know many will disagree with this). If they are it isn't going to come back.
Can you still sell it and move those resources into a better property without taking a hit? I have seen how liquor stores are a huge crime magnet in those types of areas.
I'd call up the police precinct that serves that particular neighborhood and get their impression. Although I'm sure the opinion of your tenants is completely valid, it's only one opinion...so it's anecdotal at best. The precinct will be able to tell you which direction the neighborhood is trending, or if the city has plans to fix it up.
I did this a few times and the officers were extremely helpful. Lots of great information, and they were happy to share.
That's a great idea, I will look into that, thanks @Tyler Flagg
@Jarred Sleeth Tax exchange while values are still good into a better neighborhood. That liquor store will continue to bring nothing but trouble!
You could also set up some speakers towards the convenience store and play classical music to help deter any crime. Laugh but it does seem to disperse the loiters who are less savory.
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