With all the doom and gloom being bandied about regarding the American economy, it’s natural for income property investors to fret about whether future days are going to make it harder to find renters. It’s a natural concern. Here’s what Empowered Investor thinks about that worry. People always need a place to sleep. It’s a basic necessity. The choices are buy, rent, or be homeless (or move in with your parents, which is going to fall into ONE of the three categories).
Let’s say the economy continues to swirl deeper down the toilet and that you have a property to rent for $1,500 per month. Maybe your tenant becomes underemployed and can no longer afford the rent. Yes, while it’s true he will likely leave in search of cheaper accommodations, you can expect than someone above him on the socioeconomic ladder who maybe used to rent a $2,000 a month property will suddenly be in the market for one in your price range.
People will make lifestyle and economic adjustments during hard times but they are not going to just stop renting houses en masse. If they do, then our country is probably already going to be in a state of anarchy or civil war and you will have much bigger problems to worry about than finding a tenant.
So, don’t worry about losing renters to the economy. Your good old Uncle Sam will keep creating money from thin air so everybody’s happy.
