The whole world right now is experiencing what could be called a “black swan” event that might give birth to a new paradigm. The real estate industry was caught off guard and would have to rethink its course of actions in the following weeks considering everything that is happening that resulted from the precautionary measures the government has imposed to prevent the further spread of coronavirus.
The supply of the raw materials has dwindled so much since the global trade has been minimized if not totally banned. Without the raw materials, there will be no production. Without production, there will be no work to do. And without work, there will be no pay. Many of the businesses and establishments were forced to close and those who are deemed nonessential workers have been laid off from their jobs or lost their source of living entirely.
But you see? The bills won’t stop even if your paycheck stopped coming in. Well, good news for others who have managed to keep their jobs and get paid still. Many cities are actually encouraging landlords to give rent relief to their tenants who are unable to pay their fees. The banks needed the same forbearance too. But this is going to be good only for a month or two. More than that, it will be difficult for property owners to survive should their source of income also stop. This will create a domino effect of misfortunes and the real estate markets will suffer.
With social distancing and stay-at-home orders in place, market players such as building owners, co-living properties, housing developers, retail owners and others, have questions that are currently unanswerable. The current situation will lead them to rethink their decisions and see the true value, usage and desire for real estate property and become keen with the proper utilization of space.
Property owners, micro and macro alike, have already received letters from their tenants informing them of inability to pay rent in part or in full asking for reductions or payment agreement of some kind.
With this, the real estate-related debts and tenancies will rise and the Fed and the government will surely act accordingly to reassure the public and balance things out.
The best thing to do right now is for the real estate owners to stay mindful of all the implemented precautionary measures and how they impact your current position.
You should better:
- Talk to a lawyer or anyone well versed in the matter regarding your liabilities amid the pandemic situation.
- Know how any stimulus granted to tenants works to either pay in discount, or totally miss the rent, or use the deposits to offset the month/s affected—same goes to the mortgage borrowers. Talk to your legal team to clarify arrangements and gauge the capability of your tenants.
- Call your insurance agent and ask how insurances in any form may apply in this current health situation.
- Review your contracts and check if force majeure—unforeseeable circumstances—can be used to terminate your active leases.
- Call your brokers and get their opinion, observe your cities views and join discussions. Be keen if the government’s orders will affect your property rights.
- Should you need to reposition your property, consult experts how to get the best value out of it.
In the midst of these uncertain times, it is best that you are vigilant toward the future of real estate owning and the corresponding value. It is always best to talk with the experts in the business and weigh their opinions on the matter.
If you have lingered on the thought of selling your property, you can get in touch with experts from Mrs. Property Solutions. We provide you with a fair written, no-obligation offer and convenience to sell your house fast. We buy houses Los Angeles and if you intend to sell your house for cash, we can close as quickly as 7 days, or on the schedule you prefer. There is totally no fee to work with us unlike when you list your property to the market with an agent. Moreover, you do not need to worry about upgrading your house, moving out ahead of your desired date, just so you could accommodate house viewings from potential buyers, because we buy your house as is and take care of the rest.
Amy Schmidt is a Editor of Tech News Vision. she studied English Literature and History at Sussex University before gaining a Masters in Newspaper Journalism from City University. Amy is particularly interested in the public sector, she is brilliant author, she is wrote some books of poetry , article, Essay. Now she working on Tech News vision.