Dear Friends and Family,
As Los Angeles looks toward a full reopening in the summer, developers and investors alike are beginning to map out how living spaces – both on a macro and micro level – should look. The pandemic has brought permanent changes to what renters look for in a home. Culver City, a popular destination for tech and entertainment companies, faces a new challenge of maintaining post-workday activity. Small owners of SFRs continue to feel the squeeze of delayed rents while federal assistance approaches. Finally, Los Angeles looks into adaptive reuse of outdated structures as a potential solution to the housing crisis.
Apartment Renters’ Shifted Amenities Preferences Are Likely to Last After COVID-19
During the pandemic, the kinds of amenities apartment renters looked for shifted. Outdoor spaces, reliable Internet connectivity and extra space for working all became “must haves” for some renters. And apartment industry experts say that even after the coronavirus pandemic is over, renters are likely to keep wanting more space in their apartments and more technology to keep them connected. “Renter preferences for connectedness, convenience and control are here to stay,” says Tina West, multifamily practice leader for CBRE’s property management business in the Americas.
Culver City is Booming But Housing, Retail Still Weak Points
Culver City is not an inexpensive place in which to live. Rents for a one-bedroom apartment averaged about $2.3K per month, according to rental data from apartment listings site Zumper. According to listings site RENTCafé, the average rent across all unit types is about $2.5K. Building and maintaining housing that hits a wide range of price points is key, speakers said. Preserving the existing stock of older buildings that function as the city’s de facto affordable housing stock is critical to meeting the need for housing across a variety of price ranges, Suhr noted.
SFR Remains a Hot Sector, But Some Renters Continue to Struggle
The vast majority of owners of SFRs own just a few properties—often just one, two or three units, according to NHRC. “The landlord being hurt is the person who has one or two properties with a mortgage, and one tenant is not paying rent,” says John Burns, founder of John Burns Real Estate Consulting, based in Irvine, Calif. These small property owners are especially vulnerable when rent checks don’t arrive. Of the landlords with missed payments, more than one third have had to dip into personal savings. Many have taken out additional loans to cover shortfalls.
Could Streamlining Adaptive Reuse Throughout LA Help the City Respond to COVID-Fueled Real Estate Changes?
The pandemic might create an opportunity where buildings downtown and throughout the city are not being fully utilized for their intended use. At a time where the city’s need for housing is clear and urgent, it won’t make sense to let them stay that way, the CCA’s white paper said. Making adaptive reuse easier citywide would maximize the effectiveness of a valuable tool “with a track record that shows what it can do to revitalize communities,” Lall said.
Interested in a FREE Property Operations Analysis? At Glaser Property Management Inc., we thoroughly review your lease agreements, management agreement and Profit & Loss statement to find ways to reduce expenses and add value to your property’s Net Income.
Are you an Agent/Broker with a client looking for a property manager? We DO NOT COMPETE with brokers when it comes to sales and we will keep the relationship strong for you. Additionally, we provide generous referral fees.
As always, please respond with your questions, comments, and thoughts. Until next time, hope you have a great rest of your day!