Is the Pandemic affecting your business? No trolls please

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Is the Pandemic affecting your business? No trolls please

Heather O.
Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes

Seeing a difference in buyers/sellers/tenants?


Colleagues are posting signs and we are sanitizing.

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Terrell Garren
Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
6y
Originally posted by @Jay Hinrichs:
Originally posted by @Terrell Garren:

One of my residents works at national seafood restaurant chain in Concord, NC.  You can easily guess which one. Really nice honest lady and proactive communicator.  She said business was visibly slowing and they were cutting her hours.  She's good for April rent but potential problems after that.  Here we go.

so what do you do.. I asked this question last week. you have a great tenant.. they suffer income lapse.. you work with them and let them pay what they missed over time.. or do you take the It ain my problem I am no charity stance that is so popular with landlords on BP  :) or at least it was last week when it was easy to say that.

being here in Vegas this is a reality.. Casino's have shut the buffets closed most of the shows. cancelled NHL games on and on..

so curious what you would do for a great tenant in a tough spot ? 

I cannot take credit for the quote but I do subscribe to it.  "I don't collect properties, I collect great residents"  No way I lose a great resident over a few months of hardship.  We will work it out together. 

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  • Tom S.
    Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
    6y

    @Heather O.  Not yet although I do rent to college students in one house and I know the school has temporarily closed.

    The only upshot at the moment, my mortgages are commercial and instantly reset with prime, so just got notice of the 1/2 point rate drop.

    - Tom

    6Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    6y

    So far so good on the Long term rentals and our one vacation rental.

    2Reply
  • Julie McCoy
    Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    I'm starting to see a couple of cancellations at my STRs, though it hasn't been dramatic (yet).  However, I am currently very mad at AirBNB, who just instituted a policy where guests can cancel "without penalty" within a certain timeframe.  Well, "without penalty" means guests get a 100% refund and I get jack - they just override my cancellation policy to refund the guest in full.  A 5-day booking scheduled to check in tomorrow just cancelled, so I'm out 5 days of revenue with almost zero hope of rebooking.

    While I'm all for people being responsible about their travel plans, I'm not all for hosts getting hosed - if AirBNB wants to play travel insurer, they should do it with their money, not mine.

    This is one of many reasons I'm glad my STRs have fat margins, because if this goes on for long there's going to be belt-tightening happening!

    9Reply
  • Terrell Garren
    Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    6y

    One of my residents works at national seafood restaurant chain in Concord, NC.  You can easily guess which one. Really nice honest lady and proactive communicator.  She said business was visibly slowing and they were cutting her hours.  She's good for April rent but potential problems after that.  Here we go. 

    3Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Terrell Garren:

    One of my residents works at national seafood restaurant chain in Concord, NC.  You can easily guess which one. Really nice honest lady and proactive communicator.  She said business was visibly slowing and they were cutting her hours.  She's good for April rent but potential problems after that.  Here we go.

    so what do you do.. I asked this question last week. you have a great tenant.. they suffer income lapse.. you work with them and let them pay what they missed over time.. or do you take the It ain my problem I am no charity stance that is so popular with landlords on BP  :) or at least it was last week when it was easy to say that.

    being here in Vegas this is a reality.. Casino's have shut the buffets closed most of the shows. cancelled NHL games on and on..

    so curious what you would do for a great tenant in a tough spot ?

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    5Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    6y

    I haven't seen anything in rentals although more tenants are home these days. 

    @Julie McCoy   that policy is going to hurt alot of airbnb owners. Did they notify owners on this in advance or did you just find out when they cancelled ?  

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Colleen F.:

    I haven't seen anything in rentals although more tenants are home these days. 

    @Julie McCoy   that policy is going to hurt alot of airbnb owners. Did they notify owners on this in advance or did you just find out when they cancelled ? 

    I

    I think airbnb has no choice they have to follow what the hotels and airlines are doing right now.

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  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    6y

    This is probably going to be a big blow. I am forecasting at least down 50%+ for season. It could be 80% idk yet.  Had a couple cancels so far and I know some the major hotels are cutting back hours on staff etc. It is usually 7 days a week weather permitting. I might have to try and reinvent with some land deals to make up the diff. I imagine Vegas could be very challenging this season as well. I am not expecting any return to normalcy until a vaccine is ready.  

    1Reply
  • Julie McCoy
    Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Colleen F.:

    I haven't seen anything in rentals although more tenants are home these days. 

    @Julie McCoy   that policy is going to hurt alot of airbnb owners. Did they notify owners on this in advance or did you just find out when they cancelled ?  

    I found out when they cancelled.  I did not receive any notice from AirBNB.  I still haven't.  When I tried to call them I got a recording saying that due to high call volume they are unable to take my call at this time, try again later.

    @JayHinrichs I understand that AirBNB has a lot of public pressure on them and it's important to consider community safety at this time.  However, if they are going to waive cancellation penalties/fees for their guests, they should be dipping into THEIR billions-deep corporate pockets to pay for it, not my sole proprietor pockets that their global empire was built on.  

    7Reply
  • Joseph CacciapagliaBusiness Member
    Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
    6y

    I'm still getting plenty investors looking at and making offers on deals here in San Antonio. It seems like we've had less good new investment property listings this week, but that could just be my imagination. I did have one investor client say he wanted to wait a while before buying a STR here. That seems to be the segment that will be hit first and hardest.

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  • Terrell Garren
    Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    6y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Terrell Garren:

    One of my residents works at national seafood restaurant chain in Concord, NC.  You can easily guess which one. Really nice honest lady and proactive communicator.  She said business was visibly slowing and they were cutting her hours.  She's good for April rent but potential problems after that.  Here we go.

    so what do you do.. I asked this question last week. you have a great tenant.. they suffer income lapse.. you work with them and let them pay what they missed over time.. or do you take the It ain my problem I am no charity stance that is so popular with landlords on BP  :) or at least it was last week when it was easy to say that.

    being here in Vegas this is a reality.. Casino's have shut the buffets closed most of the shows. cancelled NHL games on and on..

    so curious what you would do for a great tenant in a tough spot ? 

    I cannot take credit for the quote but I do subscribe to it.  "I don't collect properties, I collect great residents"  No way I lose a great resident over a few months of hardship.  We will work it out together. 

    19Reply
  • Michael Ablan
    Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    The effects on my Airbnbs started to show today. Just had my first $1400 cancellation. It sucks, but fortunately it was for mid summer so I have hopes to rebook it. I am afraid we might have our summer surge wrecked though.

    Fortunately I havent had any clients talk about walking away from any closings coming up. I am worried that buyers might shell up for a month or two while this plays out though.

    Our game plan is to continue business as usual, but to tighten down our spending and aggressive growth push. I had plans to make a big marketing campaign, but I'm going to wait, button things up and play defense until we get a better idea of the true severity of the situation.

    3Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    Had an airbnb cancellation take place this evening due to the virus. Not a big deal as STR is a smallish part of our overall rental income but still, it's the first blow... Also got a message from our pastor that they've cancelled all meetings/services for the next week (at least). We live 30 minutes from the Atlanta Motor Speedway where NASCAR is this weekend. They're going to run the race with no spectators. This will have a huge impact on the region as this brings in millions of revenue dollars for gas, motels, restaurants, souvenirs, shopping. It''s the only NASCAR race of the year for this track. I don't know how our tenants will be affected. We'll probably find out the first week of April.

    1Reply
  • Will Pritchett
    Rental Property Investor · San Antonio, TX · Member since 2011 · 512 posts · 290 votes
    6y

    Good thread.  No effects on long-term rentals in our portfolio in San Antonio yet.  Interest rates will drive us to do a couple of refis.  Not that the rates were created by the pandemic but likely influenced.  I'll echo some of the others that we'll play a little defense and prepare for opportunities should they arise.  Best of luck to all!

    2Reply
  • Joshua KempPro Member
    Rental Property Investor · San Angelo, TX · Member since 2019 · 18 posts · 17 votes
    6y

    @Will Pritchett

    From the Pandemic, not yet, from Oil Prices literally going to the bottom of the barrel, I am anticipating I will soon. In West Texas, oil is the economic driving factor. And one of my renters so happens to be working in the oil field in West Texas, which sounds like it has all but shut down for the moment.

    1Reply
  • Angelo Mart
    Professional · Parsippany, NJ · Member since 2013 · 384 posts · 262 votes
    6y
    Originally posted by @Terrell Garren:

    One of my residents works at national seafood restaurant chain in Concord, NC.  You can easily guess which one. Really nice honest lady and proactive communicator.  She said business was visibly slowing and they were cutting her hours.  She's good for April rent but potential problems after that.  Here we go. 

    Exactly. I was thinking same thing. Im already seeing local restaurants take a hit. One of my tenants works in a restaurant 

    2Reply
  • Angelo Mart
    Professional · Parsippany, NJ · Member since 2013 · 384 posts · 262 votes
    6y
    Originally posted by @Colleen F.:

    I haven't seen anything in rentals although more tenants are home these days. 

    @Julie McCoy   that policy is going to hurt alot of airbnb owners. Did they notify owners on this in advance or did you just find out when they cancelled ?  

    The Pandemic has just hit the United States within the past few weeks. You are not going to see any signs of default yet. Just wait this could be bad

    2Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    6y

    @Heather Olson just went live about a week ago. We’ve had two cancellations. One yesterday and one today.

    1Reply
  • Nick Rutkowski
    Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    @Heather Olson

    People are getting laid off and stopped paying their rent. I told my tenants they have to pay the troll toll to get back in their house. The only other acceptable payment will be Billy goats.

    1Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    6y

    @Angelo Mart perhaps that is true but life has to go on.  I have a better understanding of viruses then most so I am not in a panic. However, people are overreacting, RI declared a state of emergency and so my NJ relatives thought they were calling out the national guard here which is not the case.  

    I have reserves.My most vulnerable tenants are on disability so there checks will come in, and the nurses will still have their jobs. I think I will wait and see. 

    2Reply
  • Billy Smith
    Shawnee Mission, KS · Member since 2016 · 716 posts · 313 votes
    6y
    Originally posted by @Joshua Kemp:

    @Will Pritchett

    From the Pandemic, not yet, from Oil Prices literally going to the bottom of the barrel, I am anticipating I will soon. In West Texas, oil is the economic driving factor. And one of my renters so happens to be working in the oil field in West Texas, which sounds like it has all but shut down for the moment.

    Good point in a city that is not diversified in jobs it can go down quick, hard so you take on risk on top of risk. Try to buy a city that has many revenue streams, good luck!

    1Reply
  • Heather O.
    OP
    Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes
    6y
    Originally posted by @Tom S.:

    @Heather O.  Not yet although I do rent to college students in one house and I know the school has temporarily closed.

    The only upshot at the moment, my mortgages are commercial and instantly reset with prime, so just got notice of the 1/2 point rate drop.

    - Tom

    Tom!  You made my day!

    0Reply
  • Heather O.
    OP
    Specialist · White Rock, British Columbia · Member since 2017 · 99 posts · 34 votes
    6y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Terrell Garren:

    One of my residents works at national seafood restaurant chain in Concord, NC.  You can easily guess which one. Really nice honest lady and proactive communicator.  She said business was visibly slowing and they were cutting her hours.  She's good for April rent but potential problems after that.  Here we go.

    so what do you do.. I asked this question last week. you have a great tenant.. they suffer income lapse.. you work with them and let them pay what they missed over time.. or do you take the It ain my problem I am no charity stance that is so popular with landlords on BP  :) or at least it was last week when it was easy to say that.

    being here in Vegas this is a reality.. Casino's have shut the buffets closed most of the shows. cancelled NHL games on and on..

    so curious what you would do for a great tenant in a tough spot ?

     I have always worked with anyone willing to seriously make payments.  Carried many people through months of $100 weekly payments or less.  Anything to save them from going homeless.

    5Reply
  • Adam TafelBusiness Member
    Real Estate Agent · St. Paul, MN · Member since 2017 · 577 posts · 395 votes
    6y

    Simular to @Julie McCoy, my STR are suffering. I've had a few big (over 30 day) cancellations without penalty, another guest leaving early this morning. I've also had a few students contact me in need of short-term housing, so it may even itself out. As for clients, I had a successful buyer consult this morning, and existing clients are still motivated to see homes. I'm assuming next week will be pretty scarce with activity, lets all pray for a healthy April!

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    6y
    Not affecting me. I have 5 commercial closings for retail with clients coming up and a lot more clients in process. If anything the virus has caused more people wanting the stability of a national investment grade single tenant with a NNN lease because they can typically get better yields than bonds and gold etc. The market was already very strong and now is incredibly strong for demand. They want to exit stocks. Where I see more uncertainty is in small franchisee to mom and pop operators for retail. They live hand to mouth just like most residential tenants and most landlords that have maybe 1 to 2 rentals. Those tend to be most affected by shorter term shockwaves and stoppages like this. The bigger commercial companies and investors that own lots of properties with deep pockets can take the short term hits much easier and still bounce back once a recovery is under way. Right now my clients are going for national investment grade credit tenants. We are not looking at smaller franchisee to mom and pop even if cap rate is higher because of the higher risk default due to the economy at large. An exception would be smaller tenant paying below market rent on A quality dirt where if they went out of business we could release to a large regional or national chain at considerably higher rents and sell at a lower cap rate because of new tenant quality. In those cases taking the risk might make sense. I feel for the residential space. Y'all are going to get hit really hard with tenant defaults. Commercial I see big box stuff and malls being more affected as spending on non-essential goods drops. My clients buy internet resistant neighborhood small retail centers 20k sq ft and below and STNL properties. The big stuff is just too risky and a high concentration of capital in one spot for an individual investor. 
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