The pandemic’s stay-at-home orders and work-from-home routines forced people to take a long, hard look at where and how they live. As needs and priorities changed, many began to reevaluate their living conditions.
As a result, landlords and property managers have had to adapt. A new year, and the promise of a vaccine for COVID-19, has everyone hopeful about what comes next. While no one knows exactly what the post-COVID rental market will look like, we know some things have changed for good.
We’ve compiled a list of landlords’ top concerns about what happens next and the steps that anyone with rental real estate should consider.
Top of mind for landlords during the pandemic has been the inability of some tenants to pay their rent. Meanwhile, the property owner faces his or her own fixed expenses for the mortgage, utilities, insurance, and taxes. This is made even more complicated, from a business standpoint, by current eviction moratoriums (more on that topic below).
Action Item: Keep on top of the news as it pertains to relief for both renters and owners. Additional rounds of PPP or Small Business Administration loans and the CARES Act, as well as new programs, could be on the horizon. Be ready to jump on any opportunities that come along. Also, remember that rent relief is meant to be a temporary solution during COVID-19, and tenants are expected to pay their overdue balances. When it’s legal to do so, be ready to take the necessary steps to collect.
Hand in hand with rent relief is the moratorium on tenant evictions. At the time we’re writing this, it has been extended until March, 31, 2021. Further extensions are always possible based on the pandemic and the economy.
Action Item: Post-pandemic, courts are bound to be flooded with eviction cases that have been on hold since early 2020. Those who self-manage their properties may want to hire a property management company that has experience navigating the process. Going it alone means dealing with all of the confusing and time-consuming paperwork yourself.
Obviously, criminal background checks and credit history are always going to be important. But landlords may need to change their definition of an “ideal tenant” and keep an open mind when reviewing applications. COVID-19 has seen many people struggling in ways they never thought they would, such as losing a job, mounting debt, or even bankruptcy.
Action Item: Look a bit deeper than the basic questions on a rental application. Long periods of joblessness, financial trouble, or even homelessness could indicate a stretch of pandemic-related bad luck, as opposed to signs someone will be a bad tenant. This is especially true if the person has a stellar record prior to 2020.
We put the need to feel safe as the first in our list of 7 Tenant Concerns that Property Management Companies Wished Landlords Knew About. After COVID, expect to see this shift from just good locks and ample lighting to more health and cleanliness issues. For example, tenants may appreciate more frequent sanitizing of shared laundry facilities or hand sanitizer stations outside of elevators.
Action Item: For large, multi-family residential buildings, COVID made it essential to pay more attention to keeping common areas clean and sanitized. This trend needs to continue as a top priority as restrictions ease and tenants get back out into the world. That means making additional supplies and janitorial services a permanent part of the budget. And if they haven’t been added already, investments such as improved ventilation, ultraviolet sanitizer lights, or mailroom lockboxes can attract renters by demonstrating a landlord’s dedication to tenant safety.
During the pandemic, there was no choice but to embrace technology. Not only has it allowed people to continue working from home it has also proven to make some chores like grocery shopping more convenient. Automated or online features for property management are not new, but after COVID, they are likely to be the rule rather than the exception.
Action Item: Take the plunge and start using the technology that is available for landlords. Tenants appreciate the ability to sign a lease, pay their rent, or make a maintenance request online or through an app. These tools aren’t just easier for tenants, they mean less work for landlords, allowing time and energy for other tasks.
Property management companies often have an advantage when it comes to technology. They are used to dealing with multiple properties, so they are already using online methods that are standard in the industry. A self-managing landlord may find it easier to partner with an established management company instead of trying to get up to speed by themselves.
Video tours or virtual showings became a necessity during the pandemic, but they will probably stick around too. It’s easy and convenient to search for an apartment online. Make use of virtual tools and social media to show off a property and attract new tenants.
Pandemic lockdowns have been a revelation for many renters. Families realize they need more elbow room for at-home work and school. Roommates or young adults who haven’t left the nest realize they want a place of their own. For some, an efficiency-size kitchen will no longer cut it if they’re not eating out several times a week. This creates concern for landlords as they fear their tenants will move to different rental properties or become homeowners after COVID.
Action Item: Tenants leaving has always been a concern, with or without COVID. And a landlord can only do so much to change a property—an apartment’s square footage, for example, is going to stay the same. Forget what made the property attractive in the pre-COVID world: Try viewing it through a post-COVID lens instead. For example, being near an office park where they might work is no longer important if people are working from home. Nearby parks and recreational opportunities might be a bigger draw. Use those things in a new marketing strategy to find tenants who will be happy with the space.
The pandemic forced many on-site property managers to switch to remote work. Some may be wondering if it’s best to continue that way or to go back to the rental office once COVID is no longer a concern.
Action Item: Two things are important to consider for this decision. First, are tenants feeling neglected without someone on-site? The tenant-landlord relationship is important, and you don’t want that to suffer. Some of the technological tools we discussed earlier can ensure there’s still good communication. Second, is everything on the property management checklist getting done, despite not being in the office every day?
If a landlord is accomplishing all of the necessary tasks and maintaining good tenant-landlord relations, it might make sense to continue managing remotely. In fact, doing so could free up a landlord to manage even more properties. If it’s a struggle, getting back to in-person management is one answer. Another is to contact a property management company such as Select Leasing and Management. They can help you find solutions to all of your post-COVID property management concerns.
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St. Louis, MO, 63131
