concessions that landlords are making, but the data also shows that renters fear eviction at a greater rate than landlords are planning to evict. Our advice for landlords is to let their tenants know they are providing these concessions and that they are working with them to get through the hardships together. Engendering empathy to and from your tenant can go a long way in ensuring things go smoothly after the moratorium is lifted. Portfolio Impact Perhaps the most telling indicator of landlord financial hardship is that 5.5% of landlords in our survey reported having to sell a property as a result of the financial ramifications of COVID, while the National Rental Home Council Survey reports 11%.
We think our forced-to- sell numbers are lower than national averages because residential portfolios, which make up a large part of our survey sample, were less affected by COVID. But we also think it’s because landlords who use rental management software like ours find themselves better equipped to make the adjustments necessary to stay afloat How does has this distress affect rental property investment? 26.1% of landlords have seen their portfolio growth negatively impacted. 14.1% of landlords have backed out of a deal because of COVID. Almost 14% of landlords have seen their portfolio growth positively impacted.
The reason for this split depends largely on an investor’s available capital, tolerance for risk, and their capability to find decent deals in an inflated market.
F I ND I NG A DEAL MAY TAKE SOME DUE D I L I GENCE , BUT THE
DEALS ARE OUT THERE .
With interest rates low, this is a good opportunity to buy. But we are seeing a corresponding increase in demand for rental property investment, which has in turn led to higher prices. Although market prices are inflated overall, there are more distressed landlords than in a typical year.
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