What’s Ahead for Real Estate After the Pandemic Ebbs
As businesses and communities gradually comes back to life, the changes that await all of us must be met with commitment and a strategy for effectively moving forward.
Businesses everywhere have been forced to alter the way they operate due to the Covid-19 pandemic. Few things remain unchanged. As a result, major adjustments are ahead for both residential and commercial real estate, as well as property management companies.
The ‘new normal’ will play out over time and experts predict there will be a ‘market pause’ as the pandemic shows signs of ebbing. Mid-April saw the number homes under contract to have fallen 43 percent nationally.
As supply and demand inches back, market statistics from the National Association of Residential Property Managers reveal that the impact of the pandemic has not been as major as previously expected.
In April, only about 10 percent of tenants asked for rent deferment, although that spiked a bit in May and could continue through June. Landlords face the predicament of operating without payments over an extended period time. Direct rent relief appears limited from the government, although many banks and states are proving forbearance programs to help.
Many commercial real estate owners may be waiving leases and payments in order to get in front of rent deferment requests. And whatever the government ends up doing to support residential real estate will eventually make its way to helping commercial real estate.
Both tenants and landlords should plan ahead for deferral. Those deferred payments will still be due at a future date. Now is the time to plan ahead and look at solutions for the future. It’s a good idea for landlords to open lines of communication now with tenants, as good tenants are likely to remain good tenants.
Now is a good time to shape policy and practices so that property managers can be confident with how they communicate with their tenants as the ‘new normal’ plays out and we move ahead. This may include technology innovations such as two-way texting or online leasing and application forms. Possibly more virtual tours and online transactions.
The future of real estate and property management may feel somewhat uncertain at this time, but eventually things will return to a more stable market environment. Consumer behavior will likely be different, so business strategies must also be different to succeed and drive long-term growth.
At Cousin James Management, we stand ready to work with our commercial and residential customers, partners, and affiliates to make the necessary changes to move forward. We’ve been around for many years and understand how challenges can be daunting. But with vigilance and purpose, we are prepared to meet the ‘new normal’ with the reliability and trust our customers count on.
Contact Cousin James Management to get to get the expert advice you need for professional property management, commercial and residential. We’ve been managing properties in the Dallas / Fort Worth area for more than 25 years and our family-owned business welcomes the opportunity to help you with your property management needs.