ABODO’s Property Management & Multifamily Roundup (July 20-24, 2020)

in Property Management Tips

Property Management Roundup July 20-24

In this week’s installment of the ABODO Property Management & Multifamily Roundup (July 20-24), 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 20, 2020

COVID-19’s Effect on Multifamily and Opportunity Zones

GlobeSt | Lisa Brown

“While many segments such as self-storage are less generally impacted by volatility in the economy, Mountain Pacific indicates that multifamily also has strong fundamentals, making it a viable asset class long term. Mountain Pacific is a development firm created in 2019 to provide equity for real estate development and opportunistic value-add transactions with a focus on opportunity zones.”

Construction Delays Continue for Multifamily Developers

Multi-Housing News | By Holly Dutton

“Four months into the COVID-19 pandemic, developers of multifamily properties continue to experience delays in construction starts and permitting, according to a report from the National Multifamily Housing Council. In the multifamily trade organization’s recurring COVID-19 Construction Survey, 57 percent of developer respondents said they had experienced construction delays in the markets where they operate. Among those reporting delays, 83 percent said permitting delays were an issue, while 71 percent reported a “significant” pause in construction starts, according to the report. The survey was taken between July 6 and July 15 and received 61 responses from multifamily construction firms.”

July 21, 2020

CRM 101: 5 Value-Based Questions to Optimize Leasing Outcomes

Multifamily Insiders | By Lisa Tufano

“As an industry, multifamily runs one of the biggest sales teams in the country. This means that we must regularly evaluate our marketing and operations strategies to ensure that we’re investing in our leasing teams’ success in meaningful, technology- and data-driven ways. The key to building a strong sales team in any industry will often come down to the customer relationship management strategy you’ve deployed. Salesforce, the largest CRM company in the world, defines CRM as, “technology for managing all your company’s relationships and interactions with customers and potential customers.” I take that one step further to say, CRM and lead management technology need to deliver value to your bottom line. If you invest substantial time, money, and energy into front-office solutions that don’t drive NOI growth, then why bother?”

Multifamily Rents Fell Year-over-Year for First Time in a Decade

Inman | By Lillian Dickerson

“Multifamily rents in the U.S. dropped by $2 in June to $1,457, following a four-month trend of declining rents, according to Yardi Matrix’s June 2020 National Multifamily Report. Since January, average multifamily rents have decreased by $12. For the first time since December 2010, year-over-year rent growth shifted to negative, falling to -0.4 percent in June, a 70-basis-point decline from May. This compared to last year, when the first half of the year saw 2.6% rent growth and 1.2% growth in the second quarter.”

July 22, 2020

Yardi: June Continues Four-Month Trend of Rent Declines

Multifamily Executive | By Christine Serlin

“The effects of the COVID-19 pandemic on the multifamily industry continue to be felt with further declines in rent. The national average rent fell by $2 to $1,457 in June, according to Yardi Matrix’s latest National Multifamily Report. Since January, multifamily average rents have decreased by $12. In addition, for the first time since December 2010, year-over-year rent growth also turned negative, decreasing 0.4% in June, down 70 basis points from a revised 0.3% in May.”

Digital Tenant Screening: The Future of the Rental Application

Multifamily Insiders | By Daniel Berlind

“The evolving economy makes it tricky for property managers to consistently meet occupancy and meet revenue expectations. Digital tenant screening tools can save time and money by improving the application process and decision strategies, which benefits applicants and property owners. Establishing digital methods to rate relative risk of your applicants, maintain occupancy, and increase resident quality is the path to a bright future. This is especially important for large organizations in high stakes rental markets need to evaluate many applications daily. No more days of dealing with illegible handwriting, and missing documentation. Most digital tenant screening platforms pull records from large databases and provide results in minutes.”

July 23, 2020

To Be or Not To Be? How to Handle Cutting Amenities During COVID-19

Multifamily Executive | By Priyanka Agarwal

“Amenities have been a hot topic of discussion among apartment residents in online reviews. Residents are most outraged about the lack of rent concessions or reimbursement despite the amenities being closed for several months. Yet others are upset about rent increases, even though most amenities are off-limits or have opened with social distancing restrictions. Some residents have expressed that they have chosen not to renew their leases because of the “management’s handling of the pandemic.”

Using Micro-Targeting to Fill Your Rentals

Multifamily Insiders | By Sharlene Mulchandani

“With the world of advertising seemingly getting turned on its head every month, marketing your properties can be a maddening task, and property managers are reacting in different ways to stay ahead of the game. One phrase that is likely to become a staple in landlord jargon is “micro-targeting,” a growing practice that already has CEO’s heads turning. Landlords and property managers in niche markets are turning to micro-targeting to keep their properties filled year-round, and finding some real success. Although the practice might not be suitable for some, it has already proved a valuable tool for landlords across the Internet.”

July 24, 2020

Renters Struggle as Hopes for Congressional Relief Dim

CNN | By Kelly Mena

“With the economy wavering as coronavirus cases spiral out of control, millions of renters across the country who are already behind on payments are increasingly concerned about the threat of evictions as the new rent month approaches. Jose Palma, a construction worker in Richmond, California, is one of them. The 40-year-old father of two just started getting regular hours after months out of work and owes four months of back rent on a three-bedroom unit on top of his August rent — a bill of about $8,000, he says.”There isn’t a solution right now,” said Palma. “I owe rent. I have to put food on the table for my kids. It’s stressful and all very hard.”

Rent Relief and Evictions: What Will the Senate Do When the CARES Act Expires?

CNET | By Dale Smith

“Unless the US Congress acts soon, the eviction moratorium established by the federal CARES Act will run out in a matter of days, meaning nearly 12 million US adults could potentially lose their homes in the coming weeks. Federal eviction protections end July 25 and the federally enhanced unemployment benefit adding an extra $600 per week expires just days later. If a short-term extension of unemployment relief isn’t passed before the next stimulus bill becomes law, housing advocates expect a “tsunami of evictions.” The US Senate is currently discussing a second stimulus check as part of a larger rescue bill, but so far nothing has been set in stone. Meanwhile, statewide eviction bans have mostly either already expired or will soon, many with no replacement in sight. Michigan, for example, let its eviction moratorium lapse, as have several other states. A handful of states never canceled evictions to begin with.”

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

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