3 Things Property Managers Need to Consider about Evictions

The recent rise in evictions is becoming a growing concern for landlords.

All across the country, rental landlords are reporting a severe uptick in evictions – and it’s making waves within the multifamily sector. Today’s rise of evictions is threatening occupancy and interrupting returns for property owners.

These challenges are shaking the multifamily sector, and it’s keeping everyone on their toes. CRE professionals and landlords alike need to know what’s coming to stay prepared and pivot as necessary.

Why Are Evictions Rising?

First, let’s cover what exactly is sparking this sudden explosion of evictions. Like many other new issues we’re facing this year, it’s all stemming from COVID.

The pandemic interrupted the income stream of nearly all Americans, initiating a period of widespread economic turbulence. Markets closed, companies defensively let go of staff, and unemployment numbers severely increased. In order to help protect renter tenants, government authorities initiated rent forgiveness policies.

In efforts to help people cope with COVID’s financial disruption, evictions were banned until further notice. Renters were able to miss or only make partial payments to their rent, and landlords could not move forward with evictions.

The subsequent interruption to rental income placed the burden on landlords and property managers, who were left to face mortgage payments without the same level of flexibility their tenants were given.

Emerging from Rent Forgiveness

Over these difficult few months, national rent collection did fare better than expected. But, there are a significant number of tenants who have stacked up months of rent and simply won’t be able to pay.

As states across the country slowly begin to lift these protection measures, these tenants are facing eviction… and their numbers are intimidating landlords. New data reveals evictions have risen 75% since the start of the pandemic. Right now, the national eviction rate is 21%.

3 Things to Watch

As the pandemic-recovery period slowly progresses, the coronavirus remains as an active disruptor for multifamily. This is what landlords should be watching out for regarding the relationship between evictions and COVID:

Evictions are Revealing Tenant Deceit

As more and more evictions are being processed, CRE is learning just how common application fraud is. Tenants who lie about finances in order to rent an apartment are being discovered as they face eviction. This situation is causing landlords to understand how important pre-screening and application verifications are for protecting their investments.

Rethinking Leases

Adding a pandemic clause is becoming a new normal within CRE leasing. The details vary from deal to deal, but property managers and leasing teams are preparing for future disruptions by sorting out the crisis-payment plan ahead of time. In general, these clauses enable renters to make partial payments or set up a payment plan in the wake of a pandemic.

Thinking About the Future

As we approach the future, it’s clear that property managers will need to improve their leasing processes to safeguard their buildings.

Bolstering communication between tenants and landlords also needs to take place to foster collaboration. Working together is a must during a crisis, and multifamily needs to make sure it’s ready to face what’s coming – right alongside tenants. 


Why Data Collection is Imperative for the Success of Our Buildings

Data is being called the secret weapon of all contemporary businesses.

Within the commercial real estate scene, data has become the foundation of the industry’s progress. However, the focus is moving away from data collected from the building’s tenants. Right now, the industry is concerned with data surrounding the building itself.

Nothing is more valuable than data… expect maybe how you leverage it. As data becomes a vital commodity for commercial real estate, we’re all challenged to find better applications for data and analysis.

Here’s how data is expected to become increasingly pivotal for commercial real estate success into 2021 and beyond.

What Kind of Data is Collected?

Data collection in CRE will be spanning everything from operations, utilities, security, tenant movement, and more. In short, if it’s happening in a building, data will be collected.

Improving a building’s efficiency will only be possible through astute data collection and observation. Data allows commercial buildings to be responsive. This enables CRE to begin taking a preventative stance over maintenance, energy usage, and tenant management. By working with data, CRE pros can find perfect solutions to their issues.

Data shows us what we need to know and analysis shows us what we need to do. Shaping data-driven strategies and protocols are the only way to improve a commercial portfolio’s efficiency and profitability.

Helping CRE Cope with COVID

However, those baselines of CRE’s data collection are being expanded in the wake of 2020’s pandemic. As data becomes increasingly important, access to building data will be vital for both owners and tenants – especially in the era of the coronavirus.

Data has an amazing capacity to help us mitigate the risks of COVID. Air quality control, social distancing surveillance, and even predictive tracking of outbreaks are all a part of the new normals of CRE’s data collection. Whether it’s in the office space, retail, industrial, or multifamily, data will play a frontal role in keeping the people of CRE safe.

Data’s Place in the Future

As CRE evolves its data leverage, the role that information plays in the industry is expected to become more centralized. An organized and accessible database of collected information will help commercial real estate adapt to the future’s unexpected circumstances.

Data will be in charge of solving the biggest problems weighing down on the commercial real estate industry. Buildings are pressured to be more sustainable, more secure, and better equipped to operate safely during the pandemic-recovery period.

The end result of data integration with CRE will be a more resilient and stable industry. When individual assets begin flexing their data capacities, the entire network of commercial buildings will become stronger. Better building operations means better buildings, and it’s all thanks to data.

The human mind can’t comprehend everything. Fortunately, data is adding a strategic dose of clarity, helping CRE professionals maintain control even in the face of mass uncertainty.

Don’t underestimate the power data will yield over tomorrow’s commercial real estate arena. Make sure that you’re leveraging your commercial portfolio’s data well to prepare for the coming CRE trends.

How to Pivot During a Crisis

In truth, we never know what’s going to come our way.

The future is uncertain, but that doesn’t mean we can’t make the most out of a situation once it hits. This lesson is being learned the hard way during the COVID-19 pandemic as the entire business world is simultaneously disrupted.

The crisis is causing constant hiccups to happen here and there, but they’re quickly turning into big problems. Our highly interdependent world is feeling the impacts everywhere – even in the least expected places.

Resultantly, it’s painstakingly clear that we truly are all in this together. It’s up to all of us to do what we can instead of watching the pandemic get worse without lending out a helping hand.

One of the most important lessons for us all is to learn how to pivot during a crisis. When all the plans suddenly fall away, our value is tested by our ability to come up with a new strategy in response to what’s happening here and now.

We’re seeing this happen all around the world. Whether it’s with companies suddenly shifting their focus to produce high-necessity products that can help the world get by, or team’s trying to stay afloat during this difficult time for business; it seems like everyone is making 90 degree turns in response to COVID-19.

Let’s take another look at how the world is responding to the crisis at hand, and what lessons we can learn about the value of adaptability, resilience, and unwavering hope.

Responding to Global Needs

As the COVID-19 pandemic has severely impacted the global supply chain, shortages on common goods are becoming a new norm. Toilet paper, hand sanitizer, disinfectants, and other things the world usually takes for granted have been the first things to fly off the shelves – and, unfortunately, not get restocked.

Even more alarming than sold-out stores are the necessities needed to keep companies up and running. Face-masks and gloves are the two biggest requirements to help warehouses stay open, the workforce healthy, and resultantly, provide endless access to the items that people need.

In efforts to stop the spread of scarcity, many different companies and manufacturers are responding to the needs of the world and making immediate moves to supply these high-demand products… and the teamwork is nothing short of amazing.

Ventilator production by car manufactures and appliance brands have skyrocketed to ensure that ill citizens get the medical attention they need. Alcohol and perfume factories are switching gears to make hand sanitizer. Fashion brands are pumping out protective facemasks for hospital staff.

It’s this kind of innovation and dedication to the collective wellbeing that will keep us moving forward no matter what comes our way.

A Complete Shift in Business Modules

Obviously, companies like Ford and Dyson are not big-name medical equipment companies, nor are retailers Zara and H&M antibacterial mask producers. These brands have all taken a big step fueled by confidence, responsibility, and support.

For everyone involved in the global effort towards safety and security, these efforts have marked a major shift in business modules. This is a pivotal area where businesses are putting their own personal gains aside and using their presence in warehousing and production to shift the tide of COVID-19’s impact. 

Stay Calm, Creative, and Optimistic

The only way we’re going to bend the curve of this coronavirus pandemic is to stay calm and find strategic solutions to what we’re facing. We can do this. Remain flexible, be ready to help where you can, and don’t be afraid to change.