RENTAL AFTER COVID19

Rental after COVID19

Specialists in different areas have created strategies that mitigate the effects that the pandemic has caused in the financial sector. In the case of our sector, the market offers solid opportunities. As far as real estate rental is concerned, since 90% of new properties are for sale and only 10% for rent.

Therefore, we propose 2 tactics for landlords to generate empathy with their tenants, while thus preserving and securing their rental income after COVID19:

-Reasonable agreements for deferment, forgiveness or deferred payments.

Each tenant and each tenant have unique conditions, so it would be appropriate to prepare a letter of commitment signed by both parties, in which the date and specifications of the agreement are established.

-Keep promoting properties

If the property is not being occupied, it is recommended, launch a discount on your offers so that potential tenants can make the decision more quickly.

MARKET EVOLUTION

“The time it will take to return to normal will determine the evolution of the sector.”

Three situations arise:

V Evolution,

raises the temporary stoppage that we have experienced, just one quarter. The variables of the sector, such as sales, mortgage signing and construction, will recover quickly. This is a completely different situation from that of 2008 and is associated with pandemic crises.

U Evolución,

it is considered whether the state of alarm had been prolonged due to the need for more time for the health management of the crisis. In this case, the purchase of homes, and the signing of mortgages, would have been exposed to the recovery of employment, and the upward trend would have been later, as it happened in 2014.

Evolución en L,

the most pessimistic situation, would occur if we entered a recession, and employment fell sharply, due to the economic slowdown, worldwide. The sale of houses could fall by 80%, due to the lack of buyers, although the offer would be maintained, since a part of the owners would need to sell their properties. For its part, the new construction would be awaiting financing.

Despite all these possible situations, some voices of experts in the sector have been optimistic about the role of real estate in the economic recovery, since it may be one of the locomotives that takes the country forward, since tourism will take longer to recuperate.