There are two types of real estate expenses: fixed and variable. Paying your insurance, mortgage, and routine repairs are considered fixed because they aren’t sensitive to market fluctuations. However, your variable expenses are susceptible to economic shifts.
It’s important to note that your tenants suffer the most from a recession, meaning they may not be able to make rent. All at once, you may have significantly less cash flow.
During the pandemic, real estate businesses had to invest in technology to uphold social distancing protocol. You’ll need the same kind of tech to account for a recession.
Your tenants are human beings, but it’s easy to become impersonal and out of touch with your tenants when the market is good. Real estate is 100% a people business, so you need to keep your tenants happy.