6 Strategies to Run a Successful Landlord Business During COVID-19 (& Beyond)

The COVID-19 pandemic has created unprecedented challenges for landlords. Almost overnight, businesses had to close, and millions became unemployed. The devastating economic impact has left many tenants unable to pay rent. With the CDC issuing a nationwide ban on evictions through the end of 2020, landlords need strategies to deal with the effect the global pandemic is having on their business.

The coronavirus health impact also means that landlords must rethink their business model. Social distancing orders and wearing face masks mean that showing prospective tenants around apartments brings new challenges. Then, there are questions about how to collect rent, make essential repairs, and renew leases.

In this article, you’ll find out six essential strategies about how landlords can deal successfully with the COVID-19 crisis.

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How COVID-19 Has Impacted Landlords

Residential property management firms and landlords face enormous hurdles to stay successful during the current health crisis. Due to COVID-19, many tenants can’t pay rent. While there are provisions to assist struggling landlords, it seems that there are more resources to help tenants survive the financial crisis.

Under the CARES Act, jobless folks were getting an extra $600 a week in unemployment benefits. However, most of the provisions in the CARES Act have expired. Unless the government approves more economic stimulus payments, the future looks bleak for some landlords and tenants.

According to , one-third of renters couldn’t pay their full rent for July. Due to uncertainty about a second round of stimulus payments and renewed eviction moratoriums, over 20% of renters are concerned about losing housing.

And despite eviction moratoriums enforced until the end of the year, tenants will still have to pay all the rent they owe. This means that in 2021, many landlords could face the prospect of evicting tenants when moratoriums are lifted.

6 Strategies to Run a Successful Landlord Business During COVID-19

Landlords can be proactive in helping tenants meet their obligations. Building stronger landlord-tenant relationships can lead to fewer vacancies, happier tenants, and a more successful business. What can you do during the COVID-19 pandemic to keep yourself, your tenants, and your business safe?

Here are several strategies that can help your landlord business survive COVID-19 and beyond.

1. Communicate with tenants

Open communication with tenants is vital to run a successful property management business. Frequent communication can help find solutions to the financial hardships that you and your tenants are facing.

For example, when appropriate, you could offer to defer a portion of rent payments and come up with a re-payment plan. After all, keeping the rental unit occupied can be better financially than finding a new tenant. Also, some studies suggest that landlords who take a proactive approach to communication collect more rent that ‘passive’ landlords.

What you can do: To strengthen communication with tenants, use property management software. Many apps for landlords allow you to collect rent online, communicate with tenants remotely, and let tenants request essential maintenance.

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2. Make safety a top priority

Staying healthy and avoiding the virus is top of everyone’s minds. For a start, it’s good to make tenants aware of what safety precautions you are taking to prevent spreading COVID-19. Also, if you need to visit a rental unit, it’s crucial to follow CDC guidelines regarding face masks, sanitizing, and social distancing.

What you can do : If you own a multifamily property, take extra steps to clean and disinfect high-traffic areas.

3. Only carry out emergency repairs

During the coronavirus pandemic, it’s a good idea only to carry out emergency repairs. Limiting unnecessary contact with tenants can help keep you safe and protect your tenants. Of course, you should let tenants know that you are only performing non-essential repairs due to the coronavirus.

What you can do: Before sending contractors to do essential repairs, check with local state laws about performing repair work during the pandemic.

4. Assist tenants with non-emergency repairs

You could assist tenants remotely if there are any non-essential repairs required in the rental unit. For example, ask tenants to send you pictures of issues in the apartment. Then you could video-call them via Skype, FaceTime, or WhatsApp to talk them through the repairs. Additionally, you could send them “how-to” videos on YouTube.

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5. Arrange for virtual property tours

If you need to fill a vacant rental unit, consider arranging for a virtual tour of the property. All you need is an internet connection and a smartphone to do a property walkthrough. There are various ways you could conduct a virtual tour.

Here are two ideas to include in your marketing strategy:

• Have a live tour using Google Hangouts, Zoom, Skype, or FaceTime. At the property, you can conduct the tour and speak with the potential tenant. The advantage of this type of tour is that you can have a real-time discussion where the tenant can ask you questions.
• Record a full-HD video walkthrough. Start as you enter the property and slowly go through all the rooms. You could also take high-quality photographs of amenities to showcase the best the rental unit has to offer.

6. Embrace digital technology

One of the best strategies for landlords during the COVID-19 pandemic and beyond is to go digital. Many landlords are already making the change to collect rent online. However, property management apps can do so much more.

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Here are a few features that some of the best digital landlord apps offer:

• Sign and renew leases digitally using DocuSign
• Accept online rental applications
• Screen prospective tenants easier, faster, and cheaper
• Accept and process maintenance requests
• Communicate with tenants remotely
• List vacant units
• Integrate accounting software to streamline your rental business

Landlord Strategies for Surviving COVID-19

The coronavirus pandemic has impacted all aspects of property management. Job losses meant that millions of tenants have difficulty paying rent. However, rent is the primary source of income for landlords, and you need rent payments to maintain properties, pay mortgages, and keep your business afloat.

In many cases, strengthening landlord-tenant relationships can help to diffuse tension and prevent late rent payments. Also, landlords who use property management software find that it’s easier to run a successful rental business during COVID-19—and will likely remain that way once the pandemic has passed.

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