The Long-Term Impacts Of COVID-19 On The Multifamily Industry

Thu, 09 Sep 2021 13:50:05 -0500

The Covid-19 pandemic disrupted multifamily fundamentals in unprecedented ways. While the industry made several short-term changes, the impact of the pandemic isn’t limited to a certain time. According to The Business Research Company, the global real estate market is expected to grow to $4.6 trillion in 2022.

As the industry is recovering, it is time to understand the long-term effects of the pandemic. For property managers in the multifamily industry, understanding the below trends can help you better accommodate our tenants’ requirements.

Properties adapting to remote working tenants

Remote working is on the rise ever since the pandemic. By 2025, an estimated 70% of the population in the US will work remotely at least five days per month. As such, many multifamily properties have introduced new amenities to accommodate tenants working from home. The right technology can help remote working tenants work at ease from the comfort of their homes.

One such amenity is a reliable internet connection. According to an NMHC report, more than 91% of residents want high-speed internet and more than 74% want pre-installed WiFi in their properties. This matters, especially to the multifamily sectors as more tenants, rely on a single connection for their work.

The demand for co-working spaces is also on the rise. Shared workspaces can provide a professional atmosphere for tenants looking to work away from home. Co-working spaces are also better than corporate offices as they have a relaxing yet professional ambiance. Property managers can charge a small monthly fee to give access to shared cubicles with all the required amenities.

Virtual property management

The increase in virtual meetings has only facilitated technological development in property management. Even after the pandemic, tenants prefer virtual interactions not only for their safety but also for convenience. Right from screening to lease renewals, almost every real estate task can be done without physical interaction.

More tenants want companies to implement contactless technology even after the pandemic. A survey by Seekbeak revealed that 67% of prospects want more businesses to implement virtual tours. It also showed that such tours doubled the interest in the property listings.

This is for virtual tours alone. If we consider other real estate tasks, 89% of tenants want online rent payments as an option. And they prefer communications through email, phone calls, or online.

Trends show that tasks requiring the physical presence of agents and managers will be done through technology. Upgrading to virtual property management is an excellent way to capture the attention of tech-savvy Gen Z prospects.

For companies that want to move to virtual property management, well-known software like Yardi and MRI are extremely useful. Features such as contactless tours, tenant portals, and online payments help property managers seamlessly transition to virtual property management.

Changing clauses in lease agreements

The pandemic saw many regulations that differed from the clauses in the lease agreements. Limited access to common areas, deferred payments, and a temporary ban on evictions have made property managers rethink leases.

Future leases will include clauses that specifically address challenging times. Rent deferrals and rent reductions in the leases could help tenants during an unforeseen financial challenge. Similarly, mentioning terms governing common area access can keep property managers legally secure.

Transparency is the key to lease agreements post-pandemic. Tenants need to be aware of the new clauses when signing the lease. This helps avoid any legal disputes in the future.

Need for larger space

The pandemic has made people value an active outdoor life. As most outdoor amenities were closed due to Covid-19, tenants are looking for innovative ways to access the same amenities indoors.

According to Assurant, 70% of tenants want more outdoor space and 68% want a larger indoor space with more amenities. People are looking for spacious properties that can accommodate their office, workout area, and much more.

Property managers can accommodate such needs by creating lower-density areas. Duplicating amenities such as gyms and play areas can help tenants follow pandemic norms while enjoying the facilities. Allowing a limited number of people at a time can also help manage them better.

Efficiently planned common areas can also decrease the tenants’ need to have everything indoors. For example, property managers can dedicate a certain area for remote workers. This eliminates the need of having office space within the tenants’ apartment.

Cleanliness and sanitation a priority

Even as the pandemic norms ease, cleanliness and sanitation are still essential for safety. Common areas like hallways, playgrounds, and parking lots need to be regularly sanitized. Apart from that, leased properties also need to be sanitized as a part of maintenance.

Such tasks can be easily managed through property management software like Yardi RentCafe. Tenants can submit maintenance requests within the software. Property managers can access these requests through mobile devices and assign them to the right vendor or technician. It is also easier to keep track of the sanitization of each apartment, so you don’t miss any.

Formation of digital communities

To make up for the limited physical interactions due to the pandemic, residents have created their own digital communities. These communities include other tenants from their multifamily buildings who communicate through online platforms. Such communities increase social interactions while being within the restrictions of the pandemic.

Property managers can facilitate such digital communities through tenant portals like MRI Tenant Connect. These portals not only help you manage tenants but also give them a chance to interact with each other.

Implement the Right Property Management Solutions Through Assetsoft

Assetsoft can provide you the right tech strategy to deal with the impacts of the pandemic. Our team of industry experts can guide you by choosing tools according to your requirements. We can integrate multiple property management software like Yardi and Procore into a single platform. This enables you to leverage the features of multiple software within your budget.

We provide you complete support right from planning to implementation. Apart from software integration, we also provide services like data conversion, training, and report writing. Together with Assetsoft, you can meet your business goals by leveraging the right technology for your company.

To know more about our services, book a 1-hour free consultation with Assetsoft!

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