Dear Friends and Family,
As we look back on how the pandemic has affected our real estate investments, garden-style apartments with low density show the most promise. The eviction moratorium shows no signs of letting up anytime soon. We see renters dip into their savings to cover their everyday expenses as the prospect of home purchasing gets further delayed. All while the nature of leasing residential units accelerates its reliance on technology.
Suburban Garden-Style Apartments Will be the Future of the Multi-Family Sector
As the commercial real estate market shifts away from retail, it is imperative to pivot toward asset classes that will endure and thrive in the post-COVID-19 marketplace. While many investors are waiting on the sidelines, now is the time to be aggressive in buying vintage multi-family. There is going to be a significant shift towards these garden-style communities as they offer more opportunities for social distancing with open space, lower density, and outdoor access, as well as greater air circulation compared to high-rises with closed hallways and elevators.
Garcetti Balks at Termination of Eviction Moratorium
California has had zero legally enforceable evictions since a landmark April decree by the Judicial Council, the state court’s rulemaking body. The Judicial Council could soon end the moratorium on commercial and residential evictions that has been the bane of landlords, but the savior to renters and some local officials including Los Angeles May Eric Garcetti.
A Hard Time for Homebuyers Might be a Boon for Multi-Family
Landlords may be able to keep their residents longer than they might have prior to the COVID-19 pandemic, according to a new report. A report from Realtor.com, the National Association of Realtors listing site, says renters who had to dip into their savings to cover their everyday expenses during the scourge are highly likely to delay purchasing a home. The report does not say how long they might have to wait to move up to home ownership. However, it does say that on average, it will take nine months to recoup a single month’s expenses.
The Future of Leasing Associates
When the COVID-19 pandemic hit and shelter-in-place orders and social distancing became the new way of life, onsite touring and in-person leasing activities came to almost an immediate stop. Apartment communities had to quickly embrace technologies that help prospects communicate with leasing teams remotely and trust technology to carry a lot of the burden that in-person lead nurturing once accomplished. Video chats with prospective renters became the order of the day, and apartment shoppers had to grow comfortable with the possibility of leasing a home before being able to see it in person.
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.
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As always, please respond with your questions, comments, and thoughts. Until next time, hope you have a great rest of your day!