Property management in the time of coronavirus: Weekly headlines & insights – 4/4/20

Robin Young
Robin Young | 3 min. read

Published on April 4, 2020

This week, all eyes were on the 880 pages of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was passed by Congress on March 27. Though the Act took significant strides toward helping Americans who have been hit hard by the coronavirus pandemic and the ongoing financial crisis, its details have left rental owners and property managers with a number of questions.

Featured Resource
Chart of Accounts

Want clearer, cleaner books? What about a more useful view into your properties or just easier accounting in general?

Get the Guide

In this week’s post, we’ll first go over the headlines that have had the biggest impact for property managers. After that, we’ll share the best resources we’ve found for unpacking the details of the CARES Act and its impact on the rental sector.

Headlines: The CARES Act, Rising Unemployment & the Impact on Property Managers

Unemployment claims hit 6.6 million this week as job losses far exceeded what economists predicted even just a week or two ago. Through the CARES Act, the Federal Government will send a one-time stimulus check to many Americans and make low-interest loans available to small businesses; but with one in three workers potentially facing job loss by the end of Q2, more aid will likely be needed.

The CARES Act temporarily halts foreclosure and eviction procedures for certain homeowners, rental owners, and renters who are unable to make payments due to COVID-19. While the Act mainly applies to properties with federally-backed mortgages, many cities and states have passed regulations that extend moratoriums on evictions and late fees to more rental properties.

95% of property managers plan on creating payment plans in coordination with renters impacted by the crisis, according to a recent RealPage poll. In its guidance on the subject, the National Multifamily Housing Council suggests that property managers consider incentivizing on-time payments, accepting credit cards, instituting shorter payment schedules, converting security deposits, or allowing payments to be deferred.

Lease agreements still apply, and rent is still due for those who can pay. The CARES Act doesn’t nullify lease agreements, waive rents, or mandate payment plans for renters. Property managers can remind residents that they’re still responsible for following the terms of their lease as they work together on payment plans that meet both parties’ needs.

Resources for Property Managers on the CARES Act

Wondering how things have changed? Jump forward one week to 4/11/20, or back one week to 3/28/20.

Read more on COVID-19
Robin Young

As Buildium’s Senior Researcher, Robin leverages her background in social science research and interest in real estate economics to identify trends in the rental market. She combines intensive market research with insights gleaned from surveys of property managers, renters, and rental owners to examine topics like shifting renter demographics, the housing affordability crisis, and the transformation of property management during the pandemic. She's best known as the author of the annual State of the Property Management Industry Report.

Trending Stories For You
Marketing Rental property marketing ideas to thrive this leasing season
When leasing season rolls around, your already long to-do list may not include your marketing strategy. But you know how important these next few months…
Jillian Rodriguez
| 9 min. read
Accounting & Taxes The ins and outs of HOA reserve fund accounting
If you talk to an association and ask them about their HOA reserve fund accounting, you may hear some pretty unfortunate stories that happened before…
Laurie Mega
| 13 min. read
Accounting & Taxes How does a 1031 exchange work? Everything property managers need to know
There are many reasons why an investor might want to consider doing a 1031 exchange. Maybe it’s to avoid paying capital gains taxes right away.…
Amanda Maher
| 5 min. read

Be a more productive
property manager