Rents, Real Estate Investment, and Opportunity
“Unprecedented” and “We are In this Together” are constant messages we hear in the media. We’d be ok if the word “unprecedented” retired when this has all passed. However, we would like to see “We are in this together,” build momentum. We have already seen and heard beautiful reflections of people working together, finding creative solutions, engaging in a whole new way, supporting one another.
When the first wave of changes started to roll in, we were bracing for a hard hit in property management. Questions arising daily, “How are tenants going to pay rent?”, “How will owners pay mortgages?”, “How will we fulfill maintenance requests?”. Each day a new set of mandates would lead to new questions and potential problems.
What we have seen from people has been beautiful. We manage 147 properties, equating to 806 units. Of those 147 properties, 52 are single family homes and the rest are multi-unit properties up to 38 units. We manage properties in areas covering from the South Bay to Orange County with a lot of diversity of tenants and owners, income levels and socio-economic backgrounds and EVERYONE IS WORKING TOGETHER!
As of today, April 17, 2020, 92% of rents have been paid or a portion of the rent has been submitted. Of the 8% of tenants who have not paid, most have been impacted by COVID-19 and have provided proof. In the last 30 days, we have leased 9 vacant units to tenants who have stable jobs in the midst of this crisis.
Tenants realize they are not free from paying rent and want to pay. Most of all, tenants are so appreciative when we make personal calls to check in. Again, proving to us, we are all in this together.
Owners have had so many concerns about the value of their property, stability of income, and investment in residential properties. This year marks Steve’s 39th year in real estate and property management. He has been through 4 major corrections in the market, a couple of bank collapses, Y2K, the Northridge earthquake, the 2009 H1N1 pandemic, and the swine flu epidemic of 2018. When each crisis was happening, it seemed to be catastrophic and unrecoverable. Each conflict passed and offered a new opportunity.
Real Estate in California is still and will continue to be a great investment. People will always need a roof over their head. California has the best weather in the country and LA is still the mecca for business such as aero-space, entertainment, technology and much more. Stay patient, be calm, and look for opportunities.
At Day & Associates, we are taking this OPPORTUNITY to strengthen our service and to lean more into our on-line property management software; streamlining and improving on-line rent collections and maintenance requests, tenant communication, and owner disbursements through ACH deposits. 81% of our tenants are paying rent on-line and 95% are making on-line maintenance requests. Vendors are now uploading their invoices and work orders through a vendor portal allowing us to handle maintenance calls more efficiently. We continue to renovate apartments as tenants move out, thanks to our loyal trades people. We just had our first virtual walk-through with a tenant who is moving out.
So, our message to you, “This will pass, be patient, stay calm and remember WE WILL ALL GET THROUGH THIS TOGETHER. Let this OPPORTUNITY build momentum for what is next to come.”
Health and safety to all!
Steve and Kendra Day