Last month we posed the question “Does Quality Count?”
Our thanks to those who contributed to the discussion.
After reflection, and after absorbing the contributions of our readers, we have come to the conclusion that quality really does count.
And here are the reasons why - keeping in mind that there will always be exceptions to every rule.
- Better quality attracts (and keeps) better quality tenants. We have been reminded recently, in a negative sense, that all tenants certainly are not created equal. Purchasing a building with sitting tenants, of dubious quality, has reminded us why we personally vet tenants before accepting them. An empty building is far better than a tenanted building with tenants who don’t pay, and who wreck the building.
- Quality is more likely to be respected. Or, to put it another way, if a building is poorer quality and grubby, then those using it will be less likely to respect it, than if the building is well fitted out and in good condition.
- Quality will command a higher price. And the reality s, learned through experience, that tenants who want a cheaper building, will also not respect the building.
- Management costs for tenants who are price buyers are significantly higher than management costs for quality buyers
A little introspection from time to time is not a bad thing. And thinking about the reasons for pursuing the quality path has reminded us that from a daily management perspective, dealing with quality, and quality tenants, is much more satisfying than trying to manage a poor product. There will always be a place for an inferior product at a cheaper price, but I would rather leave the hassles inherent in dealing with it to someone else.
