In a recent Wall Street Journal article, writer Robyn A. Friedman explored how small-volume landlords are also vulnerable to eviction bans. She talked to Auction.com buyer Scott Stuber about his strategy regarding tenants who might have issues paying rent. Scott and his partner Tyrone Velasquez are in the business together and own 15 single-family rentals.
Scott told the WSJ that part of his success is based on his relationship with his tenants. For example, Scott addresses tenant problems within 24 hours, charges under-market rent, and sends gift cards during the holidays.
“Our tenants recognize that they’re getting a great value,” he said.
According to the article, his tenants are current on their rent.
“One advantage small landlords have is that they’re not dealing with hundreds of tenants, so they can have a personal relationship,” Daren Blomquist, Auction.com vice president of market economics, told the WSJ. “When you have that personal relationship, many times a tenant won’t just stop paying. They will let you know if they’re in a tough situation.”
Another positive outcome of local buyers like Scott and Tyrone is that they are helping to stabilize neighborhoods. Their strategy is to purchase properties that are under-market, fix them, and then cap their rental prices that return a profit but are affordable for tenants.
“We try to keep rent affordable for the average person because we know how difficult it is to find a place,” said Tyrone.
In the Dayton, Ohio, area in which Scott and Tyrone buy, they have invested about $500,000 over the last three years.