Like every other industry, the pandemic has disrupted the real estate market in ways we couldn’t have foreseen. Lost jobs meant no way to pay for rent, mortgages, and new properties, and the work-from-home trend emptied office buildings. So how is the real estate industry is staying afloat during COVID? The smart ones are adapting—and watching for opportunities.
Flexible Rents
Even if workers were lucky enough to be furloughed, they had less income for their homes. Landlords stepped up to give many tenants a break on the rent for a few months until the job situation stabilized. It’s a tactic to keep in mind in the future, especially if rental property owners want good tenants to renew their leases. Less rental income temporarily could still be better than an extra month of vacancy and less-than-impressive new renters.
Virtual Showings
Open houses and personal tours went out the window to prevent the spread of COVID. But this obstacle soon turned into an opportunity to save time for both renters and owners. Realtors could take advantage of free marketing and host open virtual 360-degree showings to their entire social network. Add in open forums for questions and instant feedback, and potential tenants could more efficiently decide if they were interested, while agents got to know candidates better before committing to a screening process. It’s a more convenient way to do things for all parties involved, and more upscale properties can add advanced technology like virtual reality experiences and 3D floor plans.
New Priorities
In the past, landlords could count on updated kitchens and bathrooms to draw great rental candidates. But priorities—and lifestyles—have changed with the pandemic. Being cooped up with the family 24/7 and working from home have made it essential that properties have more bedrooms, substantial lawns and pools for stir-crazy kids, and dedicated office spaces. It’s a movement that’s not likely to change soon.
Whiplash Research
Shrewd market analysts already keep track of interest rates, price shifts, mortgage products, and more. Now they have to account for the ever-changing pandemic landscape. For the most part, they’re taking in as much information as they can and holding on for the ride. Often, the trends can be contradictory; for instance, many tenants want to stay put until the economy stabilizes. Then again, many tenants have reassessed their lifestyles and moved across the country.
As long as emotions and uncertainty remain part of the equation, the real estate industry will be staying afloat during COVID by rolling with the changes. At R. Russell Properties, we’re watching the local market closely to advise our clients on how to move forward. It’s a time when we need all the expertise we can get, especially from professionals who have been in the business for decades. So, if you’re looking for property management companies in Winter Park, Florida, and around the Orlando area, make sure you partner with pros who know what they’re doing. Contact us to learn more about what we do and how we can help you.
