With the arrival of the unexpected COVID 19 pandemic, thousands of businesses have had huge impacts and changes. The real estate industry and property managers are not exceptions to this crisis.
Basically, social distancing has come to change our lives, and now many businesses have their employees working from home. People are avoiding contact with others as much as they can and going out is as prevalent as it once was.
This last point has obviously impacted the real estate industry hard. Beyond the immediate challenge of this crisis persisting for longer than expected, this will cause more and more changes that we will need to face.
If you are a real estate investor you need to start taking action NOW if you don’t want the long-term effects to hit you.
What is the immediate change for real estate investors?
There are certain changes that we have been seeing in the real estate industry since the pandemic began.
Over the past several years, real estate has generated steady cash flow and returns for the investor, but since the virus started this is another reality.
There are construction delays, stoppages, and potentially shrinking rates of return.
Students are leaving their apartments, and restaurants and mall stores are closing.
By contrast, self-storage facilities, industrial facilities, and data centers are performing well compared to the others.
What are the future changes?
Real estate owners are currently considering many of the long-term changes that will come with this crisis. This is a great mindset to have given this situation.
People have begun to realize the importance of owning a place they love! They have spent months in their houses.
There will be people leaving their houses and students getting back to college trying to find good places to live.
In the case of a short moratorium, it could have a lasting impact when alternatives such as video conferences are preferred. There will also be people afraid to travel for a long time, which could cause a big impact on local rental rates.
Now that people are used to shopping online, they might continue doing so. Their shopping habits will change, and businesses will have to adjust to this behavior.
Opening stores will not be as necessary and many will think of e-commerce as a better option that will save them money. This is a behavior that was changing already, and the pandemic has caused it to accelerate.
The changes and impacts on the real estate sector are uncertain, but almost every business is uncertain at this moment. Nobody can assure how things are going to work. The best we can do is predict change accordingly.
Property managers need to start taking action because this crisis does not mean that the business won’t work anymore, it only means that we all need to adjust.
How can a property manager face future challenges?
There are many options to survive in the real estate world during this pandemic. You can rethink your money process or maybe give a twist to your properties.
To do all that you need to have a good foundation in your business, considering that everybody is feeling vulnerable and people are not going to put their money at risk.
Earn your customers trust
Having loyal customers can make a real difference in how your business fares compared to others.
You need to make sure that your communication techniques are the best and that your customers feel like they are putting their money in the right place.
As a property manager, you need to let them know that you understand the current situation and also that you are looking for ways to improve your digital presence.
Take the digital leap
With physical distancing and lockdown, you need to think about ways to digitalize every possible process in your business.
Before COVID 19, the real estate industry was looking for ways to do this but now it is a must.
Property managers using virtual open houses and showings, virtual reality, and personalized sales will recover from the crisis faster than those who are not shifting into those spaces.
This is the best time to have your money under control
Given the situation, there are many property managers trying to improve their accounting process and tax savings. Luckily, we are here to help you.
At Terra Business Solutions we want to help you in this process and show that you can always be successful with your numbers.
If this is something you think might help you, you can schedule a call with us.
Without any commitment, we can hear your needs and identify if we can help you reach your financial goals with the right business structure.
Are you interested? Click here to get a call with our experts.
I wish you the best. It is not a bad time for property managers, it is simply a time to change and adjust. See you soon.