The Covid-19 pandemic has changed the way all businesses are operating and will continue to do so in the future. Both commercial and residential real estate have experienced changes in their everyday business. As property owners continue to hire real estate agents and property managers to assist them during this crisis, they must learn to navigate their business through this new normal. Here are some ways the residential and commercial real estate procedures have been affected.
Residential
The residential real estate numbers going into Covid-19 were at a near-record low, but with demand at an all-time high. Sellers began taking homes off the market and were more hesitant than ever to put them back on, fearing they would age too long on the market. With tons of people losing jobs, there were opportunities for people to suspend their mortgage payments which led to lenders being more strict on approving people for loans. The real estate company Redfin stated that the number of homes under contract fell by 43% during the month of April.
The demand for housing has begun to pick up across the nation but some experts believe there will still be a pause in the real estate market before the pandemic comes to a complete end. The market conditions from pre-coronavirus will continue to stay, but with new conditions added.
Commercial
Many commercial real estate landlords have done their very best to work with tenants during this pandemic. From waiving rent payments and leases to helping tenants get rent deferment approval, property managers and landlords have done it all. Working together as an owner and tenant can create better solutions for all parties involved. The price of commercial real estate has dropped, leaving more spaces available for those who may not have been able to afford pre-pandemic prices. This could be a great opportunity for up and coming businesses to negotiate with landlords on a building or workspace.
Tenants and landlords who are working together for deferral payments must remember that the payments will still need to be paid in the future. The last thing anyone needs is an eviction notice in their renting history. Landlords working their hardest to help out tenants are more likely to keep these same tenants after the pandemic.
Not only has the Covid-19 pandemic affected the way real estate is cooperating among parties but it has also opened the eyes of many real estate professionals. Industry-wide, they can see that now is the time to restructure and reevaluate the way a real estate business should run and how they can prepare for a potential next crisis.