ABODO’s Property Management & Multifamily Roundup (July 13-17, 2020)

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In this week’s installment of the ABODO Property Management & Multifamily Roundup (July 13-17), we’ll take you through the week in property management news, specifically, you’ll learn how the industry is preparing itself for life after quarantine with property management technology innovations, multifamily outlooks from the experts, updates on rent collections, insight into the permanent changes in real estate, and updates on adapting amenities for the future generations.

Here’s the latest in property management news and multifamily updates.

July 13, 2020

43% of Renters Have Delayed Homeownership Plans Due to COVID-19

Builder Online | By Mary Salmonsen 

“The economic impacts and safety concerns of COVID-19 epidemic have influenced over 40% of current renters to reconsider their plans for homeownership, either delaying them into the future or ending them outright, according to a new report. In a survey of 6,963 RENTCafe users in May, a full one in 10—11%—reported that they had been ready or planning to buy a home in 2020. Broken out by age group, older millennials and Gen X renters took the lead in ownership planning at 14% and 15%, respectively. At the same time, 25% of renters intended to upgrade their apartment, 24% planned to move to a similar unit, 29% planned to downgrade, and 10% intended to renew their current lease.”

Phones in Hand, Leasing Teams Take on Marketing

Multi-Housing News | By Joe Gose

“The onset of COVID-19 in mid-March could not have come at a more inopportune time for apartment operators. The sector’s spring and summer peak leasing season was set to begin, but stay-at-home orders largely restricted apartment communities from providing tours to prospective tenants. The initial fallout jolted the multifamily industry. By the end of March, year-over-year leasing volume had plunged 46 percent, and only in mid-May did it start to rebound, according to RealPage.”

July 14, 2020

How Property Management Can Make it Through a Pandemic

Forbes | By Anthony Tropea

“Due to the Covid-19 pandemic, many people have been feeling elevated levels of financial trepidation. Unemployment rates have risen to a magnitude unseen since the Great Depression, and a sizable portion of our society has turned to their retirement savings to survive — that is, those who are fortunate enough to have money saved. Property landlords and tenants alike are among the population of people radically affected by the pandemic. Large numbers of tenants have incurred significant pay decreases due to job losses and, consequently, depend on the government’s financial aid to make rent payments, if they can pay at all. The ripple effect passes to landlords, who carry a tremendous financial burden as they must make mortgage and tax payments without the rental income on which they depend.”

7 Ways Property Managers Can Streamline Back-Office Operations

GlobeSt | By Linda Birta-Mammet and Meredith Anderson

“With an economic downturn looming, the market is poised to shift in favor of buyers and renters. To navigate the changing commercial real estate market, your residential property management company must embrace technology and efficiently manage its costs and working capital. That starts with streamlining back-office operations.”

July 15, 2020

NMHC: 87.6% of Renter Households Paid Rent by July 13

Multifamily Executive | By Mary Salmonsen

“In a survey of 11.4 million professionally managed apartment units across the country, the National Multifamily Housing Council’s Rent Payment Tracker found that 87.6% of apartment households had made a full or partial rent payment by July 13. Last month, 89% of renters had made a payment by June 13. This month also marks a 2.5 percentage point drop from July 13, 2019, when 89.9% of renters had made a July rent payment.”

Three Ways to Future-Proof Your Multifamily Property for a Shifting Real Estate Market

Forbes | By Demetrios Barnes

“The pandemic crisis has thrown nearly all industries for a loop, and the real estate industry has arguably faced some of the biggest disruptions. While corporate teams work remotely, the industry looks different on the ground for property managers, developers and real estate agents who are reliant on property viewings, in-person meetings and routine maintenance. Property managers in particular are hoping to adapt to the rocky market recovery and prospects’ changing preferences while adhering to new guidelines. These changes present an opportunity to embrace digital tactics and future-proof operations strategies to safely and effectively manage properties right now and to have the resources to adapt to more uncertainty in the future. Here are three timely operational guidelines property managers should consider.”

July 16, 2020

Five Ways to Improve Pandemic Related Communication

Multifamily Insiders | By Jennifer Carter

“Even though the coronavirus is far from under control, states across the US have started to open and some residents may be feeling more encouraged while others are still on edge. Management teams are facing a new challenge, how to provide the right amount of information regarding changes community updates/changes due to COVID-19. Renters are looking for details and transparency which includes solution-focused messaging. We surveyed over 150,000 renters in our COVID-19 National Renter Study 21.1% of renters in Round 3 said they had not received any communication from management regarding COVID-19. In addition, for those that say they have received such communication, the amount and frequency are unsatisfactory.  The amount was rated 3.87 out of 5 and frequency rated 3.69; renters have made it clear that their management teams should improve in these areas.”

COVID-19 Pandemic to Disrupt Commercial and Multifamily Lending

Multifamily Executive | By Editorial Team

“Multifamily and commercial mortgage lending is set to see a decline in 2020 due to the COVID-19 pandemic, according to a new forecast from the Mortgage Bankers Association (MBA). The MBA anticipates commercial and mortgage bankers to close $248 billion of loans backed by income-producing properties this year, a 59% drop from 2019’s record volume of $601 billion.”

July 17, 2020

To Buy or to Rent? Residential Real Estate Calculus in the time of COVID-19

Fortune | By Rey Mashayekhi

“It’s part of the bedrock of the American Dream: owning your own home. Not only is a home the biggest purchase most Americans will ever make, but it’s also likely to be their main investment and best chance to create long-term, sustainable wealth. While U.S. home prices continued to climb this spring—rising 4.3% year on year in May—there are indications that the pace of that growth is beginning to stall. Zillow is forecasting that housing prices nationwide could fall nearly 2% by October, with prices gradually rebounding to stay flat over the next 12 months.”

Manhattan Rents Drops for the First Time in a Decade Thanks to COVID-19

New York Post | By Zachary Kussin

“Whad’ya know: The rent was too damn high. Manhattan rents have dropped for the first time since 2010, according to a new study. The July 16 report from real-estate listings site StreetEasy, which analyzed property prices during the second quarter of 2020, attributed the first year-over-year decrease in 10 years to the lack of demand for apartments and an increase in vacancies as New Yorkers flee the city due to the coronavirus pandemic. From April to June of 2019, the median Manhattan rent was $3,395 a month, according to StreetEasy. Over the same period in 2020, it was $3,300 — a 2.8 percent reduction.”

Be sure to check in with us for our next roundup — coming next week.

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