Navigating the Evolving Real Estate Market
Welcome to the Red Door Property Management Blog, where we delve into the latest discussions from our podcast, providing expert insights on real estate trends and investment strategies. In this edition, we unpack the current economic landscape, emerging housing trends, and provide valuable advice for new property investors.
Introduction
In this episode of the Red Door Property Management Podcast, Chris Knight, Business Development Manager, and Mike Taylor, Broker Owner, embark on an unfiltered discussion of economic developments around the Indianapolis area without prior data review. This fresh, impromptu approach promises to expose the raw insights and honest blips in the economic data that impact our listeners.
Today's Unique Approach
Today, we take a bold leap into discussing economic trends without prior rehearsals. This rare, unscripted format aims to provide our audience with authentic reactions and a glimpse into the nitty-gritty of real estate insights.
Economic Insights: Indianapolis Area
In the spotlight is the trend of built-to-rent communities, an innovative concept reshaping residential landscapes. Chris shares an in-depth look at a new development in Brownsburg, Indiana, where 165 homes are constructed exclusively for rent. Amidst a growing demand for affordable housing, these communities combine the comfort of single-family homes with the convenience of professional management—an intriguing trend promising to meet evolving housing demands.
Market Predictions and Analysis
Our conversation explores the pressing matter of whether we’re transitioning into a buyer’s market. Chris foresees a slowdown in sales due to rising mortgage rates and a potential shift in home prices. Mike, however, maintains his balanced market stance, suggesting that certain properties will continue to outperform in a dynamic landscape.
New Home Applications and Sales
Data from central Indiana signals the first decline in new home applications since mid-2023. Simultaneously, existing home sales have slowed. Despite these developments, rising prices indicate a possible balance driven by economic uncertainties and consumer responses.
Property Management Tips for New Investors
Transitioning gears, we address crucial questions new investors should ask their prospective property managers. Chris emphasizes that understanding a company's approach to minimizing turn costs and managing vacancy rates is imperative. These are key indicators of a company's effectiveness in safeguarding investment profitability.
Effective Property Management Strategies
A competent management company should perform thorough inspections and hold tenants accountable throughout their lease. Chris advocates for transparency, highlighting Red Door’s practice of providing video walkthroughs to property owners, ensuring they have a clear view of their investment's condition.
Conclusion
In closing, Chris and Mike underscore the importance of strategic questions tailored to uncover the expertise and reliability of property management companies. They stress the significance of informed decision-making in the success of any real estate venture.
Stay tuned for more insights from the Red Door Property Management Podcast, where we continue to educate and empower our listeners with practical and timely real estate knowledge.
Transcript Here
February 2025 Economic Insights
Introduction to Red Door Property Management Podcast
[00:00:00] Chris Knight: Welcome to Red Door Property Management Podcast. Here I am. My name is Chris Knight, business Development Manager here with Red Door Property Management. I've got Mike Taylor, broker owner. Mike, how are you doing today? Excellent. Chris, how you doing? Good. I'm doing well. I'm doing well.
Today's Unique Approach
[00:00:21] Chris Knight: So we're gonna do things a little bit differently today.
[00:00:24] Chris Knight: We are just, we haven't reviewed any of these numbers. We are jumping in raw and we are gonna review all the data right along with you guys. So I think this is gonna be a little bit more exciting. You're gonna see a little bit more of our blips, if you will, as we go along, which I think is part of some of the exciting stuff that kind of happens as we're dissecting some of this information.
[00:00:43] Chris Knight: And I think we were really doing a disservice to our viewers when we were leaving some of that stuff out. Yeah. Here it is. Some of the, this is the non polished version of of all of our podcast creation and ideas. So let's see how this goes.
[00:00:56] Mike Taylor: Let's do it.
[00:00:59] Chris Knight: All right.
Economic Insights: Indianapolis Area
[00:00:59] Chris Knight: So I know we were talking about jumping into some of the economic stuff that's happening around the Indianapolis area.
[00:01:05] Chris Knight: Do you prefer to start, or, I've got one I shared with you the other day. I can start with that one, which I'd really like to read pretty much the entire article. Sure. Yeah, go for it. Do you know which one I'm referring to?
[00:01:17] Mike Taylor: No, I have no idea. I get a million emails today. Take a look at it. I have no idea.
[00:01:21] Mike Taylor: Okay, cool.
[00:01:21] Chris Knight: Alright, good. This is good. Alright. It'll be like new to me again.
[00:01:24] Mike Taylor: Yeah,
[00:01:26] Chris Knight: and that's exactly, I wanted real reaction on all of these, all of this all of these recorded segments. So here, and I can't wait to get your thoughts on this. And I'm not sure, really. I haven't as I'm still absorbing the information I'm not sure where I really settle on this yet either.
[00:01:40] Chris Knight: So here it is.
Built to Rent Communities
[00:01:41] Chris Knight: Built to rent. This is a story I pulled from WTHR here in Indianapolis, so built to rent communities that are showing up in in Indiana. And this is, this particular community is happening in Brownsburg, so here we go. Brownsburg, Indiana and Brownsburg one of Indiana's fastest growing communities.
[00:01:58] Chris Knight: Builders are working every day to keep up, but in one neighborhood. Under construction right now, not a single home is meant to be sold. All 165 will soon be available to rent. This is now, this is a quote filling. This is filling a gap. Senior vice president of Buckham Companies. Justine said that the Indianapolis based real estate company is known for its apartment projects, but is partnering with Onyx East Plus to build what's known as a built to rent community at us, 1 36 in Northfield Drive.
[00:02:28] Chris Knight: In Brownsburg, people want to have single family homes, but they may not be able to afford it. So we really look for a site they can cater for that that they need. As Indiana sees increasing demand for affordable housing, a new trend is emerging that promises to reshape the landscape for residential communities built to rent neighborhoods that are making their way into the state.
[00:02:48] Chris Knight: Offering a unique blend of the privacy and space of single family homes. With the ease and convenience of professional property management, the mural Brownsburg will feature one hundred and sixty five, three and four bedroom single family. Homes between 1,520 100 square feet. They will include attached garages, fenced in yards, plus neighborhood amenities too.
[00:03:10] Chris Knight: There will be a clubhouse, a playground, and pool, plus full-time maintenance teams. Mason near said the price will be below the average single family home monthly mortgage payment, which I thought was surprising. Recent numbers show people are waiting longer to buy a home. Now.
[00:03:25] Chris Knight: This is where, this is why I wanted to read the whole article. This is additional information that I think is super valuable. Recent numbers show people are waiting longer to buy homes. Median age is now 38. So that's me right now. 38 years old. Wow. That's, I can't even imagine. We've owned a home.
[00:03:39] Chris Knight: Wow. 38. Geez. Yeah. We've owned a home for 10 years, right? Two homes, 10 years. I can't imagine waiting until 38 to buy a home. So that's the median age right now. And with a housing shortage just coming up on the end here, and with the housing shortage and higher mortgage rates, finding that first, first.
[00:03:55] Chris Knight: That first home can be tougher than ever. Built to rent. Communities really started to take off a few years ago in much larger metro areas like Phoenix, Dallas, and Atlanta. That trend is now here in the Midwest, and not just Brownburg. Similar communities have recently popped up in Greenfield, Carmel, and Lafayette.
[00:04:13] Chris Knight: The economics make sense says Doug McCoy with Indiana University Center for Real Estate Studies. Demand is very strong, but supply is not so good. Alright, that's pretty much it.
Discussion on Housing Trends
[00:04:23] Chris Knight: What's your take on this? Is this a surprise to you? Did you know about this? This is news to me.
[00:04:27] Chris Knight: I was very shocked. I'm gonna let you respond and then we'll go from there.
[00:04:31] Mike Taylor: Not news to me. No. As the article mentioned there, this is a growing trend nationwide. We've seen it here. There is one in Carmel, there's one in Westfield. So this is definitely a growing trend. I think it's just the market meeting, the demand for me you are always hearing about lack of supply.
[00:04:47] Mike Taylor: Lack of supply. And not everybody wants to rent an apartment complex. That's just, that's right. The truth of the matter. And it's also maybe just a recognition of. We are becoming more and more of a nation of renters. To your point of it's now 38. I did not know that, that is shocking to me.
[00:05:02] Mike Taylor: 38 is the average age and more people are wanting that mobility. If they wanna take a job or move somewhere else, it can stink to own a house. If you wanna get rid of it, it's not exactly a liquid asset. So I think people are, waiting till they're really settled in their life before they decide to purchase.
[00:05:18] Mike Taylor: No, it's not a shock to me. I, as a owner of, single family homes, I don't love it 'cause it's a, an increased supply. But I don't think it's gonna be over. I don't think it's gonna be an oversupply, I'll tell you that.
[00:05:29] Chris Knight: What are your thoughts? Brownsburg, although, Brownsburg is a growing community, as they indicated in the article, and as we've been saying on this podcast for some time now.
[00:05:37] Chris Knight: So 165 homes immediately becoming open on in the Brownsburg market. Yeah, that would be my, I think I would have a little bit of reservation if I. I think I'd stay away from the Brownsburg market. I think the competition there is going to be overwhelming in the short term because of that 165. And if they're able to, what achieve what that is that they're stating, which is have rent prices that are under your average mortgage price for a 1500 to 2100 square foot home, how the hell are you gonna compete with that?
[00:06:06] Mike Taylor: Yeah, I don't know that we, we every month we report on how brownsburg, the whole west side is Undersupplied and there's what, 1920 on the market. That's so few for how many There are now 165 hitting the market all at once. That's gonna be tough. I'm sure they'll stagger up.
[00:06:19] Mike Taylor: But but you're right. No it's definitely gonna, it's definitely gonna affect the supply side of things for sure.
Market Predictions and Analysis
[00:06:24] Chris Knight: Now, the second part of my opinion, which I alluded to a little bit in last month's podcast, which was my kind of foresight into what I think is happening in the real estate market right now, which I think actually since my last podcast, it's become a little bit more, I.
[00:06:39] Chris Knight: What's the right word? Revealing to your average consumer that there is a shift. In fact, if you remember, and I'm gonna call you out on this you weren't even convinced of the market take that, that I had. That we might be on the edge of entering a more of a buyer's market because the sales market is com is not completely frozen.
[00:06:57] Chris Knight: But it is certainly starting to solidify. It's starting to, it's starting to, yep. Freeze up. Nothing's starting to sell. I think that inevitably will I. We'll bring home prices down and then of course mortgage rates. I don't think there's gonna be any immediate change in the short term, but I do think that inevitably that will bring rates down.
[00:07:15] Chris Knight: So I think that we might be entering more of a buyer's market in I don't wanna say the short term, but certainly not the long term either. But I think we're on the beginning fringes of that type of market.
[00:07:26] Mike Taylor: Yeah, I was a denier. I actually, I think if I recall back, I call it a balanced market, I think, if I recall correctly.
[00:07:32] Mike Taylor: Okay. Okay.
[00:07:33] Chris Knight: I like it. Let's rewind the tape. Let's rewind the tape. That sounds like a political term right there. You can't be, you can't be charged with going in either direction, really.
[00:07:43] Mike Taylor: I guess that leads into my article unless you got something else to comment on the build to rent, but they're here, they're coming and they're gonna increase the supply.
[00:07:49] Mike Taylor: It.
[00:07:52] Chris Knight: Yeah. Yeah. I guess I just to wrap up on, on that, and I don't mean to suggest that there's any doom and gloom, but it's definitely something you wanna be aware of, right? Yeah. As you're entering the market, is the competition that you're soon to be up against.
[00:08:02] Mike Taylor: I will say this, Chris the couple that I have seen, there's one that I'm thinking of in Westfield that is totally built out, and I'm not sure what this one's gonna look like in Brownsburg, but it it doesn't exactly have the feel of a single family typical.
[00:08:15] Mike Taylor: Residential community. The one that the one that I'm thinking of. It definitely was a cross between an apartment and a single family home. It, it felt okay. I don't know how to describe it, but it felt very,
[00:08:26] Chris Knight: it had the vibe of an apartment complex, complex institutional,
[00:08:28] Mike Taylor: you know what I mean?
[00:08:29] Chris Knight: Okay. Yep.
[00:08:30] Mike Taylor: And nobody had big yards. It was very tight. It was like technically a single family home, but just because it wasn't attached, but it was it didn't feel like, I don't know. So I think there's. Still a market out there for single family homes in subdivisions that, you wanna raise a family in.
[00:08:48] Mike Taylor: I dunno. Of course. That's just my 2 cents.
[00:08:50] Chris Knight: Yeah. And not overly concerned about the competition level, the economic growth that's happening here in the Indianapolis area and soon over the long term for sure. I think is a wonderful market to be getting into. Yeah. Even if you're looking at picking up one or two single family investment properties.
[00:09:04] Mike Taylor: Yep. Alright, so let me go on mine, see what you
[00:09:06] Chris Knight: got.
New Home Applications and Sales
[00:09:07] Mike Taylor: It piggybacks onto yours and this may shock you, but actually I have two articles, but they're pretty much related. Chris only allowed me to pick one, but I'm gonna bend the rules here and pick two because they're basic, basically the same thing.
[00:09:19] Mike Taylor: So the first one is to Kris's point. The article is from IBJ, both of mine from IBJ, new home applications in Central Indiana. See the first drop since mid 2023. So this is new construction. We have a lot of investors buying new construction and we talked about perhaps where is the market going?
[00:09:38] Mike Taylor: Is this gonna be a buyer's market, a seller's market, a balanced market? And so this is just maybe a little bit of evidence that, we might be seeing a little bit of a slowdown. So this is after more than a year and a half of seeing rise in home applications, central Indiana residential builders experienced a drop in demand for new homes as 2025 opened.
[00:09:52] Mike Taylor: And so they filed 700 permits in the nine county area in January, a decrease of 3% with the same month of 2024. Then the similar news on existing home sales also from IBJ title is new home sorry. New Year opens with fewer existing home sales, higher prices. Home sales in central Indiana got off to a slow start in 2025 with January.
[00:10:15] Mike Taylor: Snowstorms likely cooling off the pace. Close transactions dropped 0.8% year over year. All sales have been blah, blah, blah. The median sales price rose 4.3%, so even though we're seeing a decrease in activity, we are still seeing an increase in price. And so this is my argument that's why it's gonna be balanced.
[00:10:32] Mike Taylor: And because I think it's gonna just even itself out and it's, I don't think prices are going down. I don't think interest rates are going down, the interest in sales is gonna slow down or looks like it's gonna slow down at least a little bit year over year.
[00:10:44] Chris Knight: Whenever you get a shift in a market though, isn't that exactly what you see where.
[00:10:49] Chris Knight: I realize in your article it's odd that they're like, the snowstorms probably affected the slowdown in the market. Yeah. And I just, I don't buy that. I don't buy that. I don't buy that. And I think whenever you have a shifting market, this is exactly what the numbers economically, the economic data is indicating these numbers, but you're still seeing rising home prices.
[00:11:06] Chris Knight: That's because your average seller, number one is probably isn't being properly informed by whatever professional they're working with, or they're still. They're still trying to achieve what their neighbor down the street did six months ago. Yeah. Which is, $25,000 more than what they're being told that their home is worth right now.
[00:11:23] Chris Knight: I think that's what we're seeing right now. And I think that cons that, for lack of a better word, or maybe there is a better word, and I just don't know it, but consumer that person who's putting their house on the market. They, reality hasn't hit them yet. So that's going to start to hit where the market data's pointing the direction.
[00:11:39] Chris Knight: And I think we're going to see home prices decrease, especially with, golly, we all see what's going on with the rollercoaster as, and I certainly don't want to get political here on this podcast. You can find that on my other one. I'm
[00:11:51] Mike Taylor: just kidding. No, but it, it does play into, it does play into this, and it's like we're at a weird situation like.
[00:11:58] Mike Taylor: Nationally and economically there's are we going into recession? And then, Trump's talking about the tariffs and it's gonna be on lumber products. So if it's on lumber products and it's 25%, that's gonna drive up the price of new homes, which then drives up the price of existing homes.
[00:12:10] Mike Taylor: We're at a really spot of a lot of unknowns right now. So I'm gonna make my prediction. My prediction is. It's gonna be a balanced market. And the good houses, the top houses, there's gonna be like two different markets. Your, if your house is nice, if it's priced right, and if it looks good staged right it's gonna sell quickly.
[00:12:27] Mike Taylor: And you might even get multiple offers. I'm gonna say that all the way through spring, summer and then there's gonna be the bottom half where you're gonna see the higher days on the market. You're gonna see homes that can't sell. So that's what I think is gonna happen this spring and summer interest rates.
[00:12:40] Mike Taylor: I think everybody agrees or maybe come down a little bit, but nothing substantial. So that's my prediction on the market.
[00:12:45] Chris Knight: Yeah. Yeah. I think the best hope for any type of reduction is may, I think is the next, when they're talking about even potentially lowering, but Yeah. Yeah. Yeah. I like it. I like it.
[00:12:55] Chris Knight: I. And even more so if you're watching this and you've got a two, God, if you're lucky enough to have a two or a three or really even a 4% interest rate right now, don't give up. Don't give it up. Don't sell it. Yeah. Never. If you, if your job is changing, I don't care where you're going. Hold onto that property.
[00:13:10] Chris Knight: Yeah. Inevitably, even if the short term, if my prediction is right, and home prices do begin to come down, we all know, right? Inevitably in the long term, it's going to increase in value. Yep. But gosh, yeah, your rate on that property, you don't, oh my gosh. You don't just sacrifice that. If you hold onto that, rent your property out, you're gonna be solid here.
[00:13:29] Chris Knight: In the Midwest. If you do that. So I think that's good. I think that wraps at least on the economic portion of our podcast. Yeah. We
[00:13:35] Mike Taylor: decided to keep a little bit shorter this month. 'cause we got a little carried away last month. And actually it's a slow news month anyway.
[00:13:40] Mike Taylor: It was February. Nobody's doing anything. It's cold. The snowstorms are slowing everybody down. So yeah, everyone's slowing
[00:13:46] Chris Knight: down. If you wanna talk about the weather, my, my goodness. We're just, this week has been incredible, right? Gorgeous. We're, it's 60, 65 degrees. Finally, my furnace has taken a break 'cause it was running literally nonstop with the cold temperatures that we've had here.
[00:13:58] Chris Knight: So it's been really refreshing and I know we're getting away from it here. And I hit this little book right here in the background. 'cause I know it's like totally pop culture. Can you even read it? Can you see what it is?
[00:14:07] Mike Taylor: No. I can see it's gold. Fourth something I can't see.
[00:14:09] Chris Knight: Yeah. Yeah. Fourth. Fourth Wing. Fourth wing. No. So it hasn't been to yet. I'm totally, I'm not pop culture guy. Oh my gosh, I've never heard of it ever. It's everywhere. Right now everyone's talking about fourth ringing. So I had it here as if I were attempting to read it, which I'm not. But maybe I'll get it on audio, but audio book.
[00:14:26] Chris Knight: Yeah. That's how I do
[00:14:27] Mike Taylor: mine.
[00:14:27] Chris Knight: Yeah, they're all reading it. It's like an adult version of Harry Potter is what it is. Ah, okay.
[00:14:32] Mike Taylor: Okay.
[00:14:32] Chris Knight: Whatever, that's, whatever that's worth. I'll let you know if I end up cracking it, but there it is hanging out in the background. Maybe somebody will comment it here in the in the comments, in the chat.
[00:14:39] Chris Knight: We'll see on that.
Property Management Tips for New Investors
[00:14:41] Chris Knight: On that note, that's gonna wrap up the economic portion and I say we just keep rolling here for just a minute and let's something else I wanted to talk about is a conversation that I had with an owner yesterday and I wanna kinda get your take on this as well.
[00:14:55] Chris Knight: Alright, so a couple points. One, so she was, she's a new investor to the area. She's already the property is pending. She's talking to a lot of property management companies and she's kinda getting some mixed news. So on the west side just north of Speedway, it's an, it's in an okay area.
[00:15:10] Chris Knight: Probably I would call it probably a C plus area. Okay. But anyway, the conversation I'm having with her. Is because she's a new investor into real estate, and a lot of those individuals tend to just jump on Google and what kind of, what questions should I ask a property management company Yeah.
[00:15:28] Chris Knight: That I'm exploring. And I think that's such a recipe for disaster for a couple reasons. I think that is inclined to get you in bed with such an inexperienced property management company. And I'll, and as I dive into these questions, we'll see if you agree. Because a lot of those very generic questions aren't the questions you need to be asking because honestly, the easiest reason why is because the person that you're on the phone with can simply lie, right?
[00:15:56] Chris Knight: And just to earn your business, and then all of a sudden you've lost a whole bunch of money, it's so important that you're working with someone with experience and something in your research needs to indicate that individual. Does have the experience. If it's not, if it's not coming through the conversation that you're having with them on the phone, something in your research, something you found on their website, needs to indicate that these people are the experts in the industry because it could cost you a tremendous amount of money if you're not working with that type of individual.
[00:16:24] Chris Knight: Alright. Alright. So enough of my rant there. Here's some of the questions. One of the questions was, what's your average turn costs? So I get this question a lot, and what's your average turn cost? This is exactly, so I think that if I'm, if I wanna earn your business and I don't have very much integrity, yeah.
[00:16:41] Chris Knight: I'll be like, oh, our average turn cost, it's 500 bucks, yeah. It's a thousand bucks for the owner. Yeah. That's not giving you any information other than leading you astray the question that you need to ask, if you really want to know about. What your turn costs.
[00:16:57] Chris Knight: It's not gonna give you a dollar figure. That's really it. It's an impossible question 'cause it varies greatly. The question I think you should be focusing on there, if you really wanna know or if you wanna really keep your average turn cost down, is what do you do in order to keep. Turn costs down.
[00:17:11] Chris Knight: Yeah. Now this is gonna reveal a couple things, a couple efforts that are being made by your property management company. Number one. And this is what I went into and sometimes I can go into it to a new investor. If you go into this big spiel, it can be a little bit scary to them, right? Yeah.
[00:17:24] Chris Knight: This guy's going on and on about stuff that I really don't understand, but I think it's so important to have this conversation with her. I don't know if she'll ever call me again because I did, I went into this, I was like. Yeah man the question that you're asking, I would highly encourage you being a new investor to the area.
[00:17:39] Chris Knight: So one of the questions I would ask is yeah, what are you doing in order to keep the turn costs down?
Effective Property Management Strategies
[00:17:42] Chris Knight: And one of the biggest things that we would do is performing inspections. Yeah. And then not only just performing the inspection, because a lot of management companies will say that they perform inspections, but then what all is involved in that process?
[00:17:53] Chris Knight: You perform inspections and then do you hold the tenant accountable during that inspection? And what's that timeline like given, should you find any lease violations or the carpet? Is the carpet overly worn? Is, are the walls heavily damaged during that inspection? Are you just going to notate it and then hope when the tenant moves out that's covered by the tenant security deposit?
[00:18:09] Chris Knight: Because if so, that's a terrible mistake. That's.
[00:18:14] Mike Taylor: Talking about, somebody lying, you could just say, oh, yeah, I did the inspection. Everything looked good. What evidence do you have that Yeah, an inspection was done. For example, we do a video walkthrough and we send it to our owners.
[00:18:24] Mike Taylor: Good, bad, or ugly. They get a copy of it and they know exactly the condition of their property. Yeah I totally agree.
[00:18:31] Chris Knight: Yeah. So those are the questions that you want to ask. Don't just jump on Google and ask those. You need to dial in what. What is your property manager or what are the people you're talking to doing in order to keep costs down?
[00:18:41] Chris Knight: And that is holding the best, that best way to answer that. The best way to, to accomplish that is holding a tenant accountable throughout the lease term and not hoping that a security deposit covers those damages at the end of their lease term, because it won't in some cases. So there was one other, one other one that she asked that I really wanted to bullet point here, and that's what's your vacancy rate?
[00:19:06] Chris Knight: Again, right? If I wanted to earn this lady's business, I could have told her, it's 2%, it's 3% whatever. But that, what you need to be asking is what efforts are you making in order to place tenants quicker? In my, what we do here at Red Door, in order to place tenant tenants quicker, because it's advantageous for both, both the owner as well as the management company, right?
[00:19:28] Chris Knight: Yep. 'cause the property's nothing but an expense until we place a tenant. Yep. So what are we doing in order to place a tenant quicker? We do virtual walkthroughs which a lot of times will he help applications come in before the property is even ready for viewing if it hap happens to be tenant occupied at the time.
[00:19:43] Chris Knight: More, more importantly, it's transparent communication with the owner. It's marketing updates, right? It's weekly updates that are performed with the owner and making quick. Suggestions on market rate, in order to produce applications. And that's all indicated by, how many clicks, how many showings have you had on the property?
[00:20:00] Chris Knight: Anyway, so before I, I ask, what's your vacancy rate? I wanna know what is it exactly that you're doing in order to place tenants quicker? That's the question you wanna replace that with. So I, yeah, when I came across those questions, I really wanted to bring 'em up here and kinda get your 2 cents.
[00:20:15] Mike Taylor: No, I love it. Specifically on the vacancy thing, you're right, anybody can say, oh yeah, it's 5% or 8%, or whatever. Sounds good. Yeah, but. For example, what we do, these market reports are a part of what we do to educate ourselves, to educate our owners, and to educate our employees, to make recommendations to our owners, to react quickly to the market.
[00:20:34] Mike Taylor: To know that, hey, if you have a townhouse in Westfield you've got a lot of competition and your days on the market on average is gonna be super high. So we need to probably be a little bit more aggressive this year on our pricing bingo than maybe next year. And so that's the advice that we're gonna give to our owners.
[00:20:48] Mike Taylor: And that's just a couple of things that we do and we do pass that information along. Like I said, good, bad or ugly, the, our owners need to know that. It doesn't do us any good if we price a town home for 2,800 bucks and everyone else is at 2,500, and we're like, Hey, everyone else is at 2,500 was 73 days on the market.
[00:21:04] Mike Taylor: We need to be below that. I don't know. I think just like market knowledge, transparency, owner communication, all of that.
[00:21:12] Chris Knight: Exactly. Yeah. So if you're a new investor to any market and I even told her on the phone like, it, you don't have to work with us, but being a new investor, I really wanna encourage you to ask these other questions that are gonna be indicative of what you're getting into and who it is that you're gonna be working with.
[00:21:27] Chris Knight: Because that decision, and she was, she lives on the completely other side of the universe, essentially. Yeah. Other side of the us. The, you partnering up at the right management company is absolutely essential to your success, so be sure to ask the questions. It's the only point I wanted to make here.
Conclusion and Market Reports
[00:21:43] Chris Knight: And yeah that's it. That's all I wanted to get across here is we're gonna jump into these market reports, which if you're ready, we can jump in over there.
