ABODO’s Property Management & Multifamily Roundup (July 6-10, 2020)

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In this week’s installment of the ABODO Property Management & Multifamily Roundup (July 6-10), 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 6, 2020

Multifamily Poised for a Reversal in Fortune

GlobeSt | By Erika Morphy

“So far the multifamily asset class has fared well during the pandemic, with the vast majority of renters staying on top of their monthly obligations. In addition, the capital markets for apartments have remained open for business during this time. However, a set of unfortunate factors are coalescing to create what Ivan Kaufman, CEO of Arbor Realty Trust, says will be the perfect storm for multifamily. These include the expected end to the supplemental unemployment payments this month and the recent surge in Covid-19 infections across the US that could keep businesses closed for longer than anticipated, he says.”

Short-Term Apartment Rental Business Models Under Reconsideration

Multifamily Executive | By Paul Bergeron 

“The short-term rental market pre-COVID was considered by many to be a rah-rah business, a “can’t miss” business model and one seemed destined for revenue greatness in apartment management. Like so many industries during this pandemic environment, lately, it’s gone bust. Third-party firms that offered white-glove service flashed dollar signs in front of small- and medium-sized owners and managers as well as REITs nationwide. The potential was easy to identify. Urban centers, particularly during times of major events such as festivals, sporting events, or conventions were a boon to apartment buildings looking to occupy available units at a short-term (one to seven days) rent premium.”

July 7, 2020

31% of Renters Doubt They Will be Able to Pay Next Month’s Rent on Time

HousingWire | By Julia Falcon

“According to a LendingTree analysis of data collected by the Census Bureau in its ongoing Household Pulse Survey, about 2.1% of all renting households deferred rent for the previous month’s payment at the end of May. But the number of people deferring rent varies significantly by state, and overall, about 31% of renters have little to no confidence they will be able to pay next month’s rent on time. LendingTree broke out the findings according to state and found that Ohio had the highest number of renters defer rent, as 5% opted for rent deferment last month. Nearly 1% of Ohio renters also said they already have plans to defer rent in August.”

How Do You Price Apartments in a Recession?

Multi-Housing News | By Diana Mosher

“With all the pandemic-related turbulence in the market, determining how apartment units should be priced to succeed has become increasingly difficult. During the past two decades, many firms have come to rely on sophisticated pricing and revenue management systems to manage their daily operations. But since the advent of COVID-19, pricing units has become a pioneering effort. “The most interesting thing about revenue management is that the biggest gains have been during recessions,” said Donald Davidoff, the president of D2 Demand Solutions Inc. Davidoff is currently experiencing his third recession using revenue management. During the first two downturns, in 2002 and 2008, he worked at Archstone, which was the first apartment company to use revenue management.”

July 8, 2020

NMHC: 77.4% of Apartment Households Paid Rent by July 6

Multifamily Executive | By Mary Salmonsen

“This week, the National Multifamily Housing Council’s Rent Payment Tracker shows that 77.4% of professionally managed market-rate apartment households had made a full or partial rent payment by July 6. This marks a 2.3 percentage point decrease from the share who paid rent through July 6, 2019, and compares with the 80.8% share that had paid their June 2020 rent by June 6.”

How To Keep Multifamily Residents Engaged Virtually

Multifamily Executive | By Kristina Rauscher

“With social distancing guidelines impacting virtually almost every aspect of life, industries across the nation have had to quickly adapt in order to meet their current needs. For the multifamily industry, this means finding safe alternatives to everyday functions and responsibilities at the property level to maintain social distancing standards for both employees and residents. This can include anything from how on-site teams run amenities to conducting virtual tours of the community. While many of these changes are not necessarily permanent, it has become apparent that the effect social distancing has had on various aspects of the industry will be here to stay, specifically for how on-site teams conduct resident events.”

July 9, 2020

New York City Vacancy Rates Reach Record Highs

HousingWire | By Julia Falcon

“Apartment vacancies have reached record-high levels as more people want to migrate to rural areas and larger living spaces. According to a new report from Douglas Elliman, Manhattan, New York, has now reached its highest vacancy rate in nearly 14 years of being tracked – 3.67%. “The state mandate that prevented real estate brokers to physically show the property was removed before the last week of the month, not enough time to have a material influence on market conditions for the month,” the report stated. Manhattan has also seen the lowest number of June new lease signings in 10 years, dropping by 35.6%, making listing inventory soar to a record 84.7%.”

Smart Apartment Technology is a Must for Gen Z

Multifamily Executive | By Aly J. Yale

“Smart locks. Smart lights. Smart speakers. Today’s smart home technologies are endless — and they’re easing the rental experience for both property managers and tenants. On the operational end, they cut down on costs, improve security, and increase marketability. For renters, they mean a more convenient way of living and a reduced environmental footprint. That last part is particularly important to the nation’s youngest cohort of renters—Generation Z. Gen Zers, or those born between 1997 and 2012, are part of the most socially and climate-conscious generations we’ve seen, and it’s trickling down to their consumption habits—and even into the properties they choose to rent from.”

July 10, 2020

Top Markets for Multifamily Construction (Part I)

Multi-Housing News | By Anca Gagiuc

“Multifamily fundamentals have taken a hit due to the COVID-19 pandemic, not just in declining asking rents, but also in dwindling construction trends. While multifamily development fared better in some parts of the country, other areas saw the construction sector take some dents. Using Yardi Matrix data, we’ve looked at the top 10 markets with the highest number of units that have started construction between January and May 2020, and compared them with the same period in 2019. Six of the top 10 metros saw the number of multifamily developments and units drop significantly. West Houston fared the worst, with its new inventory dropping by more than 3,000 units compared to January 2019 through May 2019. Still, health-care crisis notwithstanding, the country’s housing woes haven’t relented. Four of the markets show an increased volume of units that broke ground in the first five months of 2020. Below, we’ve analyzed the lower five entries of our top 10 list.”

Top Markets for Multifamily Construction (Part II)

Multi-Housing News | By Anca Gagiuc

“In Part 2 of our list of the top markets for multifamily construction, we identify the top five entries in that ranking. Our findings showed that only four of the top 10 markets saw their rental pipelines outnumber last year’s totals during the same period: Phoenix, North Dallas, Fort Worth and Urban Atlanta, in descending order. The other six markets, while among those with the highest number of apartments to break ground in the first five months of the year, had fewer new units underway compared to the same interval in 2019. These markets cover the first five positions of the ranking”

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

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