Alaska Multi family owners - how has on time payment been?

Question

Hey Alaska rental owners, I'm just curious how you are doing with on time rent payments? Are people paying on time? Late? How are vacancies doing? Any modifications to leases?

I dumped my rental in ER middle of last year, it was a dog. I've been seeing quite a few multi family listings, was just wondering if the sentiment is to get out? The rest of my units are in CO and doing well. Everyone has paid rent. I adjusted one tenants due date because of how is work pays out. Another wanted to leave but in the end stayed when they realized my unit was still a good deal.

I'm still interested in Alaska, but it seems that any good economic news is lacking. Especially with Peddle pretty much dead.

Tyson Cox · Answer

We have 48 units throughout the Kenai & Soldotna areas. All are rented and all are paying on time, minus the one or two who regularly pay a few days late. My real concern is what might happen this winter. With the possibility of unemployment benefits going back down and a federal push to mandate no evictions again, landlords may be stuck with nonpaying tenants for an extended period of time. I hope this will not happen, but I am preparing.

Michael Rogers · Answer

@Trevor...I really don't worry too much about it. In the greater scheme of things, gasoline represents a fraction of oil production and other uses for petroleum production aren't easily replaced. I do think the Alaska economy is too singular and needs diversification. That's been slowly happening, but not fast enough to suit my taste. Oil and gas production will play a big role here for a long time to come.

Jeremy Bartlett · Answer

@Trevor Halt Personally, I am not concerned about it. Alaska is such a vital resource to the rest of the country and the use of oil goes for far beyond just cars that there will be a demand for its resources and the labor force. And even if there is, Alaskans are about as tough a breed as it gets, so there will no doubt be an opportunity for the state economics to pivot to adapt to new demands should there be a need to. After all it isn't just oil that makes this state great, its mining, tourism, military, collegiate studies, fish and wildlife, etc. Its the people who have learned to find balance in a tough environment to make both flourish. Its the community!

Connor Dunham · Answer

@Tom S. Everything has been good on my end. The only hiccup was a tenant approved for rent relief, and that check was late. Everyone up here also added $992 in July due to an early PFD disbursement.

Keenan Fitzpatrick · Answer

@Tyson Cox I’m also concerned with how things will play out this winter and in the near future.

Tom S. · Answer

@Keenan Fitzpatrick thats awesome, glad to hear you are getting it all on time. Seems like its just tough right now. Not a lot of positives. Good idea on the unemployment and job listings. Not a lot of people try to help out like that. Good on you.

@Michael Rogers also great news you're getting paid. Your point about Pebble is right for sure, I meant more so for the future. Especially with the way that Oil and Gas has been cutting back. Sounds like more cuts are coming on the slope with BP leaving. Just doesn't seem to be much to be optimistic about when it comes to the economy.

Just out of curiosity how long have you guys owned your rentals in AK? A buddy of mine has a few houses on the Peninsula and its been tough for him through the ups and downs. He also had a few long vacancies of several months. Even being below market on rent. Have you guys weathered the other down turns ok?

Keenan Fitzpatrick · Answer

@Tom S. 100%!!! Same page homie!

Keenan Fitzpatrick · Answer

My 16 doors are all paying. I made sure they all know how to fill for unemployment and gave them a list of people that are hiring.

Connor Dunham · Answer

@Trevor Halt We're doing okay in Anchorage. Similar to the rest of the country. I think people give Oil and Gas bigger weight to the economy than job numbers would indicate.

Source: https://aedcweb.com/wp-content...

Keenan Fitzpatrick · Answer

@Trevor Halt

Jeremy and Michael had great points and summed it up well. I agree 100% with them. Our economy would definitely benefit from more diversification. Maybe in the future with more people working remotely we will see more people drawn to AK for its low taxes and gorgeous scenery. Or maybe they’ll go to Texas where it’s warmer, cheaper to live, and has more jobs. We’ll see.

Alaska Multi family owners - how has on time payment been?

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