Yes, they sure can, especially if their rentals are in troubled communities. I have come to understand that the worse off an area is, the more it relies on the landlords to lead. The opposite is true as well; healthy areas rely on residents to lead.
An area’s history of crime can weigh down property values like heavy cargo cause ships to float lower. Landlords, especially multifamily landlords, should be in the business of unloading “cargo” and restoring the normal buoyancy (innate value) to troubled communities.
The feature figure illustrates the Leading Landlord Principle by showing a landlord’s influence is proportional to the burden on property values. They could do a lot of good with that influence – but they don’t. The majority of landlords only focus on rent collection and don’t use their influence to affect neighborhood restoration, even though they stand the most to gain.
Exercising landlord leadership isn’t social work, it’s just sound business. As the neighborhood improves, landlords capture the “restored” equity – and that can be substantial.
Can a Landlord Make a Difference?
Yes! Maybe they aren’t aware of the opportunity. Maybe they don’t know what steps to take.
It’s time to end those excuses. This is the beginning of a series where I will present an action plan for landlords in burdened areas. You can view my strategy graph here.
I invite you to join the discussion. Together we can help landlords better use their influence. With your help, we can impact the lives of many people who deserve safer, more vibrant neighborhoods.
So true. In this economy we need to do all we can to increase profits and equity. A great time to invest in and turn around under performing areas.