When it comes down to vacancy, knowing your tenant is important and knowing the amenities that your property offers is crucial. I believe many investors, especially out of state investors look at the hard numbers like cash on cash return and never give any thought into soft factors. I don't think the importance of amenities is spoken enough on Biggerpockets and therefore I'd like to write a little about it. The luxury of having a long term tenant can go a long way... especially if they keep your property clean and well respected!

The first amenity I want to point out is the school district that the property resides in. When I show my property to prospective renters, they always ask me "is this in XYZ school district?"

Now, why would they ask me about the school district instead of immediately asking me about the property, FIRST?

Because they care more about their children than the actual property itself! So if you have a lower end property in a great school district, does it matter all that much if it isn't the nicest? No not really... BUY IT and HOLD IT. The taxes might be higher and it might not cash flow as nicely but you will always have demand for that property. Once you pay off the mortgage it becomes a gold mine! Here in Toledo we have several school districts that are very desirable. Families try extremely hard to get into these areas just so that their children can study at these schools:

Ottawa Hills Schools #8 School district in Ohio

Perrysburg City Schools #22 school district in Ohio

Anthony Wayne #27 school district in Ohio

Sylvania City Schools #32 school district in Ohio

The second amenity I want to point out is the job diversity. Most people are concerned about job proximity but nowadays people are commuting for more than 30 minutes to work... so looking at a market we need to consider the job diversity. If your market is dominant in just one area, you're not going to do well in an economic downturn. Here in my market of Toledo, we have this covered by

Health - Promedica, a top 50 hospital in the USA, and McLaren hospital

Education - The University of Toledo, Bowling Green State University, and all the schools mentioned above

Manufacturing - Jeep, Owens Corning, Owens Illinois, DANA, The Andersons

Distribution - Amazon, Fed Ex and UPS

The point here is that if my tenant loses his or her job, there are several other options for him or her to purse.

The third amenity I want to point out is the "romance" and night life factor. Are there parks? Are there restaurants and bars? Are there events happening? Why would your tenant stay in a dull and boring place unless they're a dull and boring person? In my market we also have this covered

Parks - Toledo is home to over 22 parks, we also have several river trails!

Restaurants & Bars - Toledo is the 5th highest restaurants & bar per capita in the USA

Events - Toledo has many farmers markets, boating and kayaking gatherings, bowling alleys, movie theatres, and other attractions!

The point here is that my tenant won't consider moving if they are living in an area that provides them a fun time with their friends!

So to wrap it all up, consider your soft criteria when investing! It might just save you from an economic downturn!

Thanks for reading!

Toledo, Ohio

7 Votes