Property Management: What trends in 2020 will Impact 2021!?
Inside the 80027 with Terri Ellerington Real Estate Professional
English - September 17, 2020 11:00 - 25 minutes - 17.6 MBInvesting Business Entrepreneurship real estate property management louisville superior community invest boulder lafayette mortgage rental Homepage Download Google Podcasts Overcast Castro Pocket Casts RSS feed
As a professional property manager and owner of Peak Property Management at Re/Max Elevate I am getting a lot of questions on Property Management trends. Today I want to share with you my personal take and opinion on what I am seeing in 2020 that I feel will impact what we will see for 2021.
The most common question I am asked, WHAT IS HAPPENING TO RENTS? Some landlords made the decision to give a little rent decrease, while some decided to make no changes to rental amounts, I did have a handful make VERY slight increase, which were warranted for increase in landlord expenses (taxes, insurance, HOA). I don’t think that we will truly have the data and information on the full impact that COVID had on the overall rents in the area until next year
So HOW will this TREND impact 2021? Keeping an eye on rents is going to be VERY important within the coming 9 months. I anticipate that next year we will see a very flat line in rental rates, I think that investors are going to error on the conservative side and do what they can to KEEP their properties rented and income coming in rather than focusing on increasing rents.
What happened to rent collections? So I am VERY proud to say that approximately 8-9% of our inventory went on a payment plan, while I know other management companies and surrounding areas had a much larger impact on rents. Of those that went on a payment plan, all deferred rent was agreed to be paid back within 12 months. Overall this was a huge success! We can’t forget that during this time there were a lot of restrictions that were placed on landlords in the CARES act. Also effective September 4, 2020 the CDC eviction moratorium has been published. Ask me if you want more details
So How will this trend Impact 2021? The future of people being able to pay rent and owners to carry these rentals, time will tell. Unfortunately it will be the small investor/owners that will be impacted the most.
Staying at HOME in 2020 will have a HUGE impact on 2021.
1.) Normal Wear and Tear:
2.) More Maintenance Calls/Issues.
3.) Needing to CHANGE space/Home configurations, means more movement
4.) Moving to be near family OR moving family IN
Tip or Tid-Bit to take away for what you should do for 2021! Hire Peak Property Management! Having a professional during this time can be on of the smartest, best things you can do!