Ever since the first waves of the COVID-19 outbreak here in the United States, the economy has experienced a variety of impacts from the eventual pandemic. While the government has responded with an eye towards minimizing the spread of the disease, the gradual shutdown of most of the US economy has led to increased unemployment and decreased consumer spending. The most pressing concern for real estate investors is the state of the rental market during the pandemic. To address this issue, we’ve developed a list of predictions for Las Vegas property management after COVID-19:
- May and June will be tough. With the US unemployment rate soaring to 14.7%, nearing Depression-era numbers, property managers and investors alike are worried about tenants’ ability to make rent payments. While payments for April experienced some delinquency, May and June are when property management companies in Las Vegas could see a serious increase in late or missing payments.
- Las Vegas could see larger impacts. As the economy begins to slowly reopen, hospitality, travel, restaurants, and entertainment venues will likely continue to suffer. Government officials have implemented delayed and reduced-capacity reopening strategies for many related businesses. Since Las Vegas depends heavily on these sectors, tenants in the city are more likely to remain jobless for a longer period of time.
- Homebuying may become more difficult. Although the Fed has lowered interest rates – sending mortgage rates fluctuating as the market tries to stabilize – it may become more difficult for the average American to buy a home. With negative impacts on employment status, savings, and credit scores alike, many of these potential homebuyers stand to turn to Las Vegas single-family rentals instead.
- Single-family will become the ideal. With the current concern about disease vectors and points of contact that could spread the virus, the appeal of living in a multi-family dwelling may be on the decline. Renters will likely prefer renting a house through a property management company, without a shared entrance or shared facilities. The safety and privacy of the home is more important than ever.
- Property management will shift online. During this pandemic, property managers across the country were forced to interact with tenants virtually and push many processes online. This shift exposed a number of advantages to virtual property management and highlighted the ease with which Las Vegas property management can be accomplished remotely. Many investors plan to continue online and paperless property management even after COVID-19.
While property management in Las Vegas is a tough business at the moment, most experts believe single-family rentals are a relatively bright point. As the economy continues to recover, uncomplicate your property management process, and maximize your investment value with Home365’s range of services. Contact us today to learn more.