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The pandemic caused a variety of changes in the rental market? The impact was varied and many changes appear to be permanent.
Rents went down and then increased over the course of the pandemic. In 2020, when many were working remotely, there was an exodus of tenants from cities to less expensive rural markets. This exodus resulted in higher vacancies and lower rents. However, as mortgage rates went down and the sales market heated up, many investment owners decided to sell and the market changed from a renter’s market to a landlord’s, with lower vacancy rates and increasing rents.
The pandemic also changed leasing protocols as remote systems became necessary. Online marketing and virtual tours became the norm. Prospective tenants no longer have to be local to view a potential property. Applications are often completed online and leases can be signed electronically.
As common amenities, such as swimming pools and fitness centers, reopened, many apartment and condominium communities implemented a practice of scheduling usage in order to limit the number of simultaneous users. The added privacy has been so popular, many communities intend to continue the practice.
The stay-at-home mandate also changed the space demands of tenants. Roommates working remotely and kids attending school from home decided that more separation and space were important for sanity.
The most significant changes to the rental market are a result of the eviction moratorium, the impacts of which are ongoing, as well as changing rental laws.
We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!
Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.
