With all the turbulence in the auto industry I’ve become increasingly weary of potential tenants who work for one of the big 3 car manufactures. Previously if I saw that someone worked at GM for instance I would actually feel a little comfort in knowing that their jobs were at least some what secure. But nowadays who knows. In the past month I’ve found out that 4 of our tenants have either lost their jobs completely or had their hours severely cut back. Two of thest tenats are currently looking for new jobs and have requested to be placed on payments plans. The other two are more than likely going to end up being evicted. That means more vacant houses and a higher turnover rate both of which are negatives we strive to avoid.
With the additional news that came out yesterday stating that GM will be cutting another 21,000 jobs and getting rid of the Pontiac brand I’m really not feeling any better about renting to a tenant who has anything to do with the auto industry. I generally feel the same way about tenants in the financial industry but I haven’t run into very many of those recently anyway.
Am I alone in this thinking? I can’t be. Sure I realize that I can’t publicly deny an other wise quality tenant from leasing one of our properties just because of where they work…or can I?
As an investment company our goal is to look out for the best interest of our investors. That means that we take reasonable risks and to be honest I think that renting to someone in the auto industry right now is much riskier than normal. What do you think?