Trump’s Tariffs

[[email protected]]

I don’t think tariffs will affect my real estate business directly at all, because we don’t do any business overseas.

However, tariffs may have an indirect effect on the recent rapid rise in interest rates, which has hurt my business. I’m hoping that tariffs may help the government reduce the budget deficit, which may help interest rates to come down.

Don

[[email protected]]

I agree with Don (Hey Don, it’s Greg Wilson).

For most smaller landlords (non-corporate Wall Street owners), I do not believe the President’s tariffs will significantly impact our business. Most of us buy existing, distressed inventory, and the proposed tariffs will only slightly increase our rehab/repair costs. If the tariffs have the desired effect, namely to strengthen our economy, in the mid-to-long term, our tenants should be better positioned to pay our rents.

Greg

[Kane Francetich]

The tariffs and other federal polices are definitely causing costs to go up for landlords. Nearly every type of repair or replacement cost is increasing, especially more expensive items like appliances. Also interest rates, which were starting to come down before the threat of increasing inflation introduced by trump, will keep loan rates high (if you have any properties that are larger than a 4-plex, then you have a commercial loan which readjusts rates every 5 years). Insurance costs are increasing due to the federal government backing away from providing any disaster relief help, which spreads the added burden to everyone’s premiums. And if you rely upon your rental income to live on (it is my myself and my wife’s only source of income), as everyday costs go up, we have no choice but to increase rents to compensate. Every landlord that I’ve spoken to is planning significant rent increases to cover the higher costs coming from the trump administration.

[[email protected]]

Inflation index went down in February and March. There’s a lack of housing which is good for business. The number of uninsured people in the country are causing increases on all insurance premiums. The only way to address that is to remove non-citizens who follow the laws. Let me know if anyone wants to participate in a jv in San Antonio- the best real estate market in the country.

[Lexi L]

Hey there! Lexi from TurboTenant here. I completely understand how uncertain things are with all the talk about tariffs and what it might mean for landlords. While some of us might not feel an immediate impact, others, like Kane, are already seeing those higher costs on repairs, appliances, and insurance premiums. Plus, with interest rates climbing, it’s definitely putting a strain on landlords who rely on rental income to cover everyday expenses.

If you’re wondering how all of this might affect your business, our team put together a couple of YouTube videos where we chat about Trump’s tariffs and other shifts in the economy that could impact you as a landlord. Check them out when you can, and feel free to share your thoughts—we’d love to hear what you think.

Positive Impact of Trump’s Tariffs: https://www.youtube.com/watch?v=6OYzyd_Cs-o

Negative Impact of Trump’s Tariffs: https://www.youtube.com/watch?v=jyB0MnEHjf8