You may have heard discussion of real estate from a moral perspective.
Do you have concerns about the ethics of real estate? Let's look at that today.
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Is multifamily real estate a socially responsible investment?
The answer is, it can be.
As it is with most things, the ethics conversation that surrounds real estate is complicated, and there are a lot of different factors at play.
The argument against multifamily investing being socially responsible is that we're raising rents on tenants, which can push tenants out and cause hardship for people.
The reality is, however, that is only an issue when the landlords aren't doing their part of the deal.
A landlord who is not investing in the property is a slumlord. In that case, no, it's not a socially responsible investment.
At Nighthawk, our strategy is very different.
We often buy properties that are tired, old, and need an investment of dollars and energy to make them better for the tenants.
That’s what we do.
We put millions of dollars into the interior and exterior of the units to really make them a higher quality place to live.
Here’s a quick example of this in practice:
We were walking in to one of our properties once. We had just taken this property over and we were walking through the units and an attendant came out and said, “Hey, you know, my furnace is not working. I'd like to get it fixed.”
We said, “No problem, we'll take care of that for you put in a work order. “
She said, “Well, how much will that cost me?”
And we said, “That's not your problem. We’ll take care of this stuff for you. That's that's what we do.”
At that point, she literally hugged us and was crying. She was so thankful her landlord was taking care of that for her and doing it in a timely fashion and not billing her for it.
It’s our intention to be be responsible to our investors and our tenants. The fact that we're taking care of them and taking care of their property, their home is a huge responsibility we do take it seriously.
We believe real estate investing can and should be socially responsible.
But it takes an operator who is committed to doing that.
We've seen messages from tenants many times throughout the years, that let us know this is happening.
We’re proud to run an organization that we believe is socially responsible in how we invest.