John T. Reed, a Danville, Calif., real estate investor, author and editor of Real Estate Investor's Monthly newsletter, isn't taking any chances on the stock market plunge having a similar effect on real estate investments.
He's prepared a checklist of measures landlords should consider "to deal with recession or depression." Among other advice, he urges real estate investors to pay close attention to the rental market so that they are not too slow to lower rents.
"Paradoxical though it may sound, the investor will actually collect more money if he lowers his rents to keep them in line with falling market rental values," Reed said. "That's because trying to get more than market value results in unnecessary vacancies. And a vacancy is a 100% rent reduction."
The checklist is free to people who send a self-addressed, stamped envelope to: Real Estate Investor's Monthly, c/o PBS, P.O. Box 447, Brookline Village, Mass. 02147.