As COVID continues to shape the landscape of our entire lives, it’s certain that it affects property managers, owners and residents. We are having to work with various national and local inconsistencies concerning eviction deadlines, and out of 2,919 renters surveyed in a study by Avail, 31% were not able to pay their full rent in August. This is compared to 24.6% of the 2,918 that were not able to pay their rent in full during July. According to another study by Avail, incomplete rent payments are more popular due to COVID-19, increasing by 93% between March and May 2020 alone. And while it is difficult to predict what will come, it’s only logical that this upward trend in partial and delinquent payments will result in a major catastrophe for owners and property managers – here’s why:
There’s a domino effect. Residents have lost jobs, and unemployment is unstable with the sheer volume of claims filed. States are quaking under the need for support, and even if funds are allocated to unemployment beneficiaries, it can take weeks or months for households to receive the support they rely on for basics like food, fundamental utilities, vehicle loan payments, and credit card bills. And with so much uncertainty across all industries, even residents who are still fully employed are afraid to lose their jobs, holding on to whatever funds they have. In short, residents and prospective residents are financially devastated and cannot continue confidently with any sort of practical normalcy. Even the most responsible, careful people are faced with the fact that they cannot pay their rent.
With this knowledge, it’s only logical to consider how much this affects property managers and owners. Even if you have screened financially-viable and responsible residents, how can you be sure that they will actually pay? A head of household will always prioritize feeding their family before paying a lessor – case closed. Where does this leave you as a property manager or an owner who must continue to make mortgage payments? Are you prepared to “float” or cover the rents of a family that has fallen on hard times? What about multiple families? The truth is that no property can bear this burden.
As property managers, you cannot control the state of the country and the mindset of residents. But what you absolutely can and, quite frankly, must control is a proactive response to this instability – by ensuring that you are as budget-savvy as possible when it comes to generating leads and managing them. Eviction protection has lifted in many states and major drops in occupancy are inevitable. This is all going to happen quickly, and with a major catastrophic impact – are you ready?
At Apeiros Marketing, we keep an eye on the multi-family apartment industry to develop solutions that protect and bolster our clients’ budgets. We offer lead generation solutions, reputation management, and image optimization all in one SEO-boosting directory listing lock.
Please contact me today to learn more:
Jennifer Holmes, Business Development Specialist, Call or Email