I'll bite. This is my two cents from a real-life real estate agent's experience...
I was a newly licensed agent riding around in my '03 Nissan Altima. I had just sold my "fancy" Chrysler 300 because it was pretty much a turd on wheels. A fellow agent (in South Florida, Miami/Ft. Lauderdale area) suggested that I upgrade from the Altima to something a little more upscale because "clients aren't gonna take you serious when you pull up in an old Nissan to show them a six-figure listing."
I never once had an issue with my old Nissan hindering my ability to fulfill my duties as an agent. It is truly unfortunate that we live in a society where we are often judged on our material possessions rather than our ability to fulfill our professional obligations. I know people who drive high end luxury vehicles but don't own a single thing besides the clothes on their back & I also know super successful multimillionaires who shop at Goodwill for clothing and won't purchase a vehicle priced higher than $3000. I guess it goes back to the old adage "don't judge a book by its cover."
I've found that some renters have a "you're loaded, you can afford it" mentality. As in, "you should cover my obligation". For this, among other reasons, I tone down my vehicle. Usually, P/U truck.
@Christopher Hunt I agree. I try not to be flashy either. I drive an Audi but use my wife's mazda when meeting with tenants. It is not convenient to swap cars so I am leaning toward getting a different vehicle.
I would never meet a tenant in my nice car. I always drive my dog truck-2007 Honda Ridgeline. I've only had the back seats down a couple of times because most of the time my dogs are riding back there. It also has a trunk to store tools. You should see the look on the faces of the people at the drycleaners when I say put it in the trunk. :)
I used to drive a vehicle whe the previous owner hit a deer(cracked windshield and inoperable passengar door) and ruined the muffler trying to do an aftermarket glass-pac.
After I bought newer used truck (also about the time I started having less time/valuing it more), I stopped being able to collect rent/make money in the war zones.
Not sure if it was the change in auto or change in me.
I do discriminate against tenants that roll up in an escalade. I have a written policy in my internal tenant guide that says, Blue-book value of tenant's car must be less than value of house they want to rent.
I've since left the warzones, so that doesn't much apply now, but you'd be surprised how many people were immediately disqualified by that rule.
I drive a 1996 GMC pickup truck. It runs great. I bought it with a dent in the passenger side door from a guy at work. It has poor gas mileage but I can do anything I need with it. Tenants, realtors, bankers, contractors, ect all see me in this truck. They know I am hands on and work my tail off. My truck is a reflection of who I am. Just like my clothes, they are not fancy because I am getting stuff done, I can throw a waterheater and scratch up the bed of my truck and it doesn't faze me, same with my clothes.
My lawyer had a nicr vehicle and from my understanding of what his financial picture looks like I have no problem with that because I am confident he can afford it. I have met realtors however that drive $50,000 vehicles and they can't afford it. That is the part that bothers me. I have a hard time taking advice from someone who is acting financially irresponsible. Those who are financially irresponsible have a more difficult time acting in my best interest when working on my behalf.
As for renters, many have nicer vehicles than me, some can afford it an some can't. I think I will always drive a pickup truck because of its usefulness at least in tenant relations. I intend on being able to afford a Porsche someday however I would not think it wise to roll up in that for a showing. After I have a tenant for 6 months or so they see my work ethic and service so I would not be as hesitant to show some of the benefits of my hard work but it would depend on the person. Some folks have a certain worldview and will use any act or sight to justify that worldview and I do not wish to reinforce that belief or make myself a target in anyway.
I guess the other side of this is you could slip into conversation, " you see that $70,000 vehicle I rolled up in? I didn't pay cash for that by being a poor business person. I serve my clients well and thus I have a successful business. Furthermore, if I pay that much for a vehicld, imagine how much I am willing to pay my attorney to protect my business :)"
@Michael Herr I always laugh when I see a really nice vehicle all tricked sitting in front of a dilapidated house ....You see it all the time driving through Detroit. It usually has 30 inch rims and looks like a moon rover.
"I do discriminate against tenants that roll up in an escalade. I have a written policy in my internal tenant guide that says, Blue-book value of tenant's car must be less than value of house they want to rent."
Ha! Unlikely to be a protected class any time soon
@Christopher Hunt I agree. I try not to be flashy either. I drive an Audi but use my wife's mazda when meeting with tenants. It is not convenient to swap cars so I am leaning toward getting a different vehicle.
Do you mean you drive the better car and let your wife drive the cheapie? What kind of guy are you? LOL
Yes, flashy is not good. Bought my new truck and a tenant might make a comment, well, you have the big bucks.....my reply is to ask if they want the payment? (No, I didn't have payments but you can put that back on them). My wife's car rarely went to rental, if it did, she was driving.
As they tell new real estate agents, you don't need a new car, your vehicle should be free of damage, clean, reliable and insured.
Perception is something to be aware of. It can work for or against you. Buying, you can afford more, selling, I don't have to sell!
If you're a landlord, get a small truck, 3/5 years old, one that's economical, clean and looks decent. No rock crawlers or low riders, just a truck.
BTW, No political stickers, as polarizing as politics gets you don't really need to tell people you're for or against anything. Same with religious matters with stickers on controversial issues. Consider if something could be offensive to others and what the statement is. I've seen some crude ones......not good.
I always said too that I wasn't a good enough driver to have a company sign on my vehicle. If you have a company sign you can't honk at anyone, pull in front of them, cut them off or blow past them when they drive too slow! You have to be nice all the time! LOL :)
"BTW, No political stickers, as polarizing as politics gets you don't really need to tell people you're for or against anything. Same with religious matters with stickers on controversial issues. Consider if something could be offensive to others and what the statement is. I've seen some crude ones......not good."
I drive an 82 Ford van that I paid $2995 for 15 or more years ago. It meets my needs. I like my tenants to think I am frugal so they won't be having rich tastes when they want a new fridge or fancy landscaping.
I have an old truck that is dirty and all like some others have mentioned. But it only gets about 15 miles to the gallon. A few years ago I bought a diesel Mercedes. This was before the new government standards went into effect on diesel, and diesel was actually cheaper than gasoline. The car got 30 miles to the gallon and I could go more than 600 miles on a tank. Anyway, it was used when I bought it and I only paid about $6000 for it. But I always had that same concern about my renters seeing me in a Mercedes. I eventually totaled it, and I now drive a very modest looking Chevy Malibu. I can get 32-33 mpg with it.
I tend to think that a lot tenants would tend to be envious / jealous of an owner showing up in a flashy newer vehicle, we don't need anything to start any ill will from festering.
I don't have that problem as most tenants drive nicer newer cars than I do. I'm a cheapskate and try to get every nickle out of a car that I can, that's something most tenants wont do, thus keeping them tenants.
"I do discriminate against tenants that roll up in an escalade. I have a written policy in my internal tenant guide that says, Blue-book value of tenant's car must be less than value of house they want to rent."
Ha! Unlikely to be a protected class any time soon
If you often see vehicles worth more than the homes, that might be a sign that you are in the wrong neighborhood.
I am a buy and hold guy, but in this climate have considered a flip or two (if I can get a good deal),,,but I watch those dumb "flipping" tv shows, and realized I can't flip because I don't drive a Lamborgini and it appears everyone that flips (based on the shows, LOL), seem to all drive them,
@Michael Herr@Jon Klaus@Jon W. - In my area, one can drive through the back-roads and see $40,000 bass boats sitting in front of 16' wide manufactured "homes". Along with a $30,000 truck to pull that $40,000 bass boat.
@Michael Herr@Jon Klaus@Jon W. - In my area, one can drive through the back-roads and see $40,000 bass boats sitting in front of 16' wide manufactured "homes". Along with a $30,000 truck to pull that $40,000 bass boat.
I went to college in east TN and remember seeing that. At least they aren't drug dealers, just most of their paycheck going to boat/truck notes and expenses.
I drive a 2007 Dodge pickup. Functional and borderline respectable, without being flashy.
I have to say in all honesty that what tenants and others would think of it never crossed my mind when buying it. But people have made some good points.
One thing it does remind me of is not to fall into the trap of using that, "Look at an applicants car to see how they will treat your house" technique. My house is pristine, and so is my wife's car. My truck? Well....
Jon, I am so glad you brought this up... Tenants absolutely DO watch, talk, and form opinions of their landlords. As I was working on getting my house ready for the tenant to move in I was driving my SUV because I was able to haul cleaning products etc. After she moved in, I once showed up in my BMW not thinking anything about it. It's my EVERYDAY car AND 12years old! (Still looks good though)
When my tenant came to the door she sarcastically said to me. "Oh you bought a new car huh". I politely said ...."no, I've had this car 12years" its not new. Following month she's LATE on her rent!
IMO: I would never drive a luxury vehicle because I'm for the proletariat. :) Seriously, I rather plow that money back into an investment or some other worthy cause. Who wants another high maitneance liability? Nothing against people who drive luxury vehicles, it's your decision.
As far as tenants, it makes it tough to have a conversation about raising rents or cutting costs when you pull up in nice BMW.
I've heard real estate agents say that driving their clients around in luxury vehicles makes them look more credible, but I don't think it warrants such a purchase. If my Realtor or financial planner drove me around in a BMW, I immediately think "Am I getting screwed by his fees?"
BTW, No political stickers, as polarizing as politics gets you don't really need to tell people you're for or against anything. Same with religious matters with stickers on controversial issues. Consider if something could be offensive to others and what the statement is. I've seen some crude ones......not good.
The same should be said for prospective tenants. We had one show up in a car with a bumper sticker that said "Too poor to vote Republican." Automatic disqualification (I'm kidding, but still...).
Regarding luxury vehicles, we don't own any (we have a 10 year old Silverado and 7 year old Camry), but not because we couldn't afford one (or two). Part of it is that we aren't flashy people in general (no fancy clothes or designer purses for me). It's true that (some) tenants will judge their landlords based on their vehicle, so we don't want to give the impression that we're rich. Makes it harder to raise rents with the claim "my expenses are going up."
Also, though, we don't want luxury vehicles because it's simply not a good use of our money. We just need a truck and a car - purely functional criteria. Spending more just to get some fancy labels on it seems pointless to me. And anyone who's read The Millionaire Next Door knows that most wealthy people, especially those who worked for it rather than inheriting it or striking it rich in sports or entertainment, drive pretty standard vehicles, not luxury vehicles. They know there are much better uses of their money than a "brand."