There’s a lot of uncertainty right now as to how impactful this virus will be on our health and local economy. Our team studies property management on a local and national level for trends, variances, opportunities, and potential risks. We are seeing things happen other places that could happen in Richmond as well. In an effort to provide some information for investors to be more prepared, please see below:
Happening Nationally:
- Tenants have refused to leave at the end of their lease siting uncertainty and high risk of virus.
- Tenants (apparently even with strong renter history) are stating the virus has impacted their income and are not able to pay rent, are asking for lenience.
- Vendors are less responsive to non-emergent maintenance due to fear of employees becoming sick.
- Property Managers have chosen to be less responsive to non-urgent maintenance requests from tenants to keep their team safe, similar to vendors.
- Showings have decreased or have been cancelled due to the fear of being in public buildings or other people’s homes, which might impact vacancy if this is longer term.
- Occupied unit showings have ceased for the protection of the tenant in place, the showing agent, and the prospective tenant.
- Some management offices are closing and demanding rent be paid in a different manner than visiting the office.
- Occupied unit inspections have stopped, unless deemed emergent.
Happening at Peak Property Management:
- We have decided to focus primarily on urgent maintenance request, but will delay minor requests and routine inspections within dwelling units for the next week or two if possible. We will maintain a high level of communication with respect to the tenant, and will be mindful and respond to anything that may cause more damage if it were to be deferred. This is an effort to keep our in-house maintenance techs and their families safe.
- We have not seen large cancellations in showings yet, but it is early. We do believe there will be an impact on leasing, but I’m not aware yet as to how impactful it will be, or if one asset type will be more impacted than others. Fear of moving could actually cause tenants on the fence to renew rather than vacate at the end of a lease. To be determined.
- At this point, we have not had any notices from any of our Tenants regarding the virus. If this occurs and seems like it may impact an owner on our team, we will notify the Owner to discuss strategy in handling this unique situation. Ultimately, we have leases in place, but if this virus progresses and causes a real local impact, we may consider an outside-the-box strategy to protect the interests of all involved.
- Our office will remain open, however we will encourage the few tenants that drop off a check to move to our online portal.
Be Prepared:
- Think through how you will handle some of these situations in advance and write our a process for it.
- Handle them consistently and do not favor one tenant over another.
- Be proactive and prepared so you can act unemotionally and with fairness for all.
Now is the time to show your team (vendors and tenants) that you value their health as much as you do your own. You may not know what they, or their family member, are dealing with. As the leader of your team, prove that you have their back. They will remember that when this passes and treat you accordingly. Whether you believe this is a big deal or not, others may feel differently.
This is an unprecedented situation, and it is more important than ever to create mutually beneficial arrangements between tenant and landlord. Think outside the box, and be courteous. There is a need to create a win-win for all parties involved, and the landlord or manager needs to be a leader in a situation like this.
If you’re self-managing your investments in Richmond and need some advice, suggestions, or tips, reach out to Peak Property Management anytime. Regardless of whether you’ll ever need or want a professional manager, we want to benefit our community and be a resource if you need us. Let’s stick together and find solutions to keep moving in the right direction.
Stay safe!
