Virus' Impact- Notes from a PM

[Stephen Glover]

There's a lot of uncertainty right now as to how impactful this virus will be on our health and local economy. Our team studies property management on a local and national level for trends, variances, opportunities, and potential risks. We are seeing things happen other places that could happen in Richmond, VA as well. In an effort to provide some information for long term buy and hold investors to be more prepared, please see below:

Happening Nationally:

Tenants have refused to leave at the end of their lease siting uncertainty and high risk of virus.

Tenants (apparently even with strong renter history) are stating the virus has impacted their income and are not able to pay rent, are asking for lenience.

Vendors are less responsive to non-emergent maintenance due to fear of employees becoming sick.

Property Managers have chosen to be less responsive to non-urgent maintenance requests from tenants to keep their team safe, similar to vendors.

Showings have decreased or have been cancelled due to the fear of being in public buildings or other people’s homes, which might impact vacancy if this is longer term.

Occupied unit showings have ceased for the protection of the tenant in place, the showing agent, and the prospective tenant.

Some management offices are closing and requesting rent be paid in a different manner than visiting the office.

Occupied unit inspections have been paused, unless deemed emergent.

Be Prepared:

Think through how you will handle some of these situations in advance and write our a process for it.

Handle them consistently and do not favor one tenant over another.

Be proactive and prepared so you can act unemotionally and with fairness for all.

Be a Leader:

Now is the time to show your team (vendors and tenants) that you value their health as much as you do your own. You may not know what they, or their family member, are dealing with. As the leader of your team, prove that you have their back. They will remember that when this passes and treat you accordingly. Whether you believe this is a big deal or not, others may feel differently.

This is an unprecedented situation, and it is more important than ever to create mutually beneficial arrangements between tenant and landlord. Think outside the box, and be courteous. There is a need to create a win-win for all parties involved, and the landlord or manager needs to be a leader in a situation like this.

Whether you self-manage or use a professional manager, communicate with your team and others in your community to find creative solutions to keep moving in the right direction.  This is a learning experience for many, and we can do better when working together.

Stay safe!