Covid 19 & Property Management
With the current global crisis, we know that many of you are very concerned about vacancy and rental income. As residents may lose the opportunity to work, there is a possibility that rent will be delayed. The last few days have been incredibly challenging and confusing for everyone. Please know that you are not alone. Our success is dependent on the success of you, our homeowners. We are partners, and we will get through this crisis together.
We take absolute measurements to secure uninterrupted rental income. As today there are two main focuses, which are active listings and stressed residents. We are dedicating more and more time to meet with our prospects, applicants, and residents. We are here to listen, discuss, negotiate, and secure positive resolutions. We have astronomic willingness to assist and give everyone individual attention.
If your property is actively listed for rent, we are working with the rental prospects. While we are not overcoming our rental requirements in terms of NO evictions, we have to be more sensitive to the credit score and income factors. Most likely we will have to adjust these standards. One of our suggestions is to reduce requirements about income equal 3 times of the rent to 2.5 months. Also, we may not consider months of March/April/ May in calculating average monthly income when assessing the applicants. Then, we will be more considerable about 600 minimum credit score to qualify for one month security deposit. After the applicants pass successful interview with our Leasing Manager, we may accept one month deposit from good-fit candidate if credit score is slightly lower than 600. Additionally, we may lower security deposit requirement to the out-of-state applicants. We also decided to waive application fees for co-applicants to develop higher pool of the applicants as we believe that it will lead to faster tenant placement and lower vacancy.
Moreover, April rent is around the corner, and we may face more late rents than usually. We will address it with income loss validation and payment plan execution. If there is no room to negotiate, we will be replacing the tenants in the most possible win-win scenarios for all the parties. If you are under our Rental Guarantee program, there will be no tenant placement fee for managing these cases. If not, we will put all efforts to eliminate or minimize these expenses. Indeed, it will be more difficult to collect any late fees for next couple of months. On our end, we will not collect any management fees unless rent is paid.
While it’s clear to all of us that the coronavirus has deeply impacted our community, we know that this moment will pass and good times will be back. Please feel free to contribute to this action plan and share your ideas, so together we can built the strategy not to just to sustain but become stronger and more efficient.
Valentina, Steven, and Mila Realty Property Management
For more updates, visit https://milarealty.kb.help/the-impact-of-the-coronaviruscovid-19/C