Insights on Owning Rental Property During the Pandemic
The pandemic has certainly impacted all areas of our lives. What has remained relatively strong amidst the uncertainty has been the housing market. Mortgage interest rates are at record lows. Inventory of homes for sale remains low, resulting in sellers routinely receiving multiple offers on homes quickly after listing.
The rental market has been a different beast altogether. Mortgage protections are not available to landlords in the same way they are to homeowners. Many rental property owners have tried to get creative with their property management style in order to stay afloat while also working with tenants impacted by the pandemic.
Given the unknowns of the months ahead of us, these factors will be worth keeping a close eye on in the coming months if you own a rental property:
- Changes in government protections for renters. Whether its payroll protections, rent subsidies or a local eviction moratorium, many renters have been supported through the recent hard times when it comes to their monthly financial obligations. While this attempt at stability has been good for many renters, some of these protections may be coming to an end soon, and many renters will face the struggles of disproportionate cost burden in the COVID-19 economy. With all the movement in local and temporary regulations due to the pandemic, it can save a lot of headaches to seek the help of a property management company, so you know you’re a compliant landlord while focusing on your own day-to-day priorities.
- Changes in the labor market, and its effect on renters. Job growth is one of the key factors of rental market health in any city. Today’s rental market has been served a major blow by the pandemic, leaving the unemployment rate at record highs. While protections for renters have temporarily provided relief for those who have lost their jobs or have been furloughed by their companies, landlords have absorbed the impact. Additionally, while homeowners have experienced some relief around their mortgage obligations, those same measures have not applied to commercial property owners.
While protections are short for landlords and rental property owners, it doesn’t hurt to take advantage of resources that have your interests at heart during the pandemic uncertainty. The professional property managers at Tradewinds Properties can relieve a great deal of the stress of managing rental property through the pandemic.
Tradewind Properties is here to help you take the headache out of managing your rental property. As a Tradewind client, your most difficult task is checking your monthly statement. Contact us!