Rumors are everywhere about how Covid-19 is affecting tenants and landlords. Laurence Jankelow sent out a survey to the tenants and landlords on his platform to get some hard data and numbers. Laurence runs Avail, a soup to nuts website that helps landlords and tenants pay rent, run background checks, report maintenance problems, and advertise vacancies. With over 10,000 responses to his survey, Laurence was able to get a good look at how tenants were dealing with the pandemic.
One of the biggest surprises from Laurence’s survey was the disconnect between what tenants were saying and what landlords believed was happening. His results were surprising, so Laurence encourages landlords to open a dialogue with tenants now before they get surprised in June and July.
Half of all rentals in the U.S. are owned by mom and pop landlords, who are making a small amount of profit on their properties. Rent forbearance, rent forgiveness, and canceling rent would all have hugely negative consequences for these smaller landlords. Laurence and I talk about whether the government can actually stop the rents, and what that might mean for property owners.
Is this a better time to sell properties or pick up more properties? Maintenance, showings, and iffy financials may force you to consider leaving the rental market. Laurence says that if you’re in a situation where your investment property isn’t putting money in your pocket anymore, then it’s time to get out.
Getting through Covid-19, we’re all going to have to compromise. We’re all going to come away with less than before, but tenants and landlords are in this together.
Watch and Learn
Listen and learn:
- Lenders and tenants are not communicating with each other, Laurence’s survey found.
- Laurence’s advice for landlords who are in this situation.
- Rent collections for April and May versus the national average.
- If you want to get out as a landlord, it may be a great time to do so.
- No matter what happens, real estate will definitely recover.
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