Education and news for smart DIY landlords!
The year is almost ending and that’s for sure. But the pandemic doesn’t seem to disappear anytime soon. People have lost their jobs and others are struggling to pay rent. Social distancing protocols are still followed making it difficult for house buyers, sellers, and real estate agents to meet face-to-face.
While this does seem like a huge problem, we humans have always found a way to adapt to current situations. Others have created changes in housing demand that have set new trends - especially for 2021. Here are the new demands you should know.
More house buyers will prefer to meet with a seller or their agent via video call to follow social distancing protocols. In terms of advertising and house listing, this will all be done in the virtual space. House sellers should focus on online listings, professional house photography, videography, and virtual tours to boost selling appeal.
As remote working proves to be as effective and more cost-efficient than working in an office, residents will no longer need to move out for a work reassignment. That means the number of people buying and selling houses will be reduced.
The pandemic has caused a global economic recession. A lot of people have lost their jobs and very few are working. This has caused an issue on the affordability of properties and rent while making the demand for houses high. House sellers may lower the price to make sales and landlords may lower rental rates to fill vacancies.
Families are now staying inside their homes to work, study, exercise, and play. There will be a high demand for larger properties with more rooms so that everyone can have their own office, gym, library, gaming room, etc.
For small property investors, they might need to construct new spaces to increase the number of rooms in their property for sale or rent. This is to meet the needs of 2021 families as we all continue to stay at home while practicing physical distancing.
Unlucky families who have been hit by the massive unemployment wave will struggle to pay rent and mortgages. There may be moratoriums, forbearances, and stimulus packages to intervene in foreclosures and evictions, but it’s unclear how long they’ll be there.
The same goes for the pandemic. However, a lot of things are certain - landlords cannot go on without collecting rent, it’s unreasonable for homeowners to avoid paying mortgages, everyone will need to catch up on payments, and a lot of people will be displaced.
Aside from people being laid off from work and a lot of things canceled due to the pandemic, a lot of real estate projects have also been delayed. Investors will need business partners they can trust.
Contractors must be able to work with quality and follow deadlines, real estate agents must be on schedule, lenders must close deals with speed and certainty, and appraisers must be able to actually show up as promised.
Staying home isn’t easy for a long time. The more we’re stuck in quarantine, the more claustrophobic and unhealthy we feel. And if there’s one important thing this pandemic taught us, it is not to take our surroundings and overall health for granted.
Mood-uplifting paintings, daylighting houses, clean energy, natural ventilation, water recycling systems, and simplistic interior designs will be on the checklist of 2021 homeowners.
This year is very difficult for everyone and is especially challenging for real estate investors. The pandemic caught the entire world off guard. The good thing is, new housing trends have emerged due to our current situation and most are here to stay for the following years. Just refer to this list so you can avoid pitfalls in your next real estate investments.
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