Property Brew
How to Adapt to Fewer Rent Payments
To: Property Brew Subscribers
May 2020



Morning everyone and welcome to Tuesday! We're just over halfway through the month and still staying just under the average height of an NBA player away from each other (6ft 7'). But, if a priest in Detroit can still find a way to bless people with holy water (he used a squirt gun), we can still find a way to do our jobs in style too. What a time to be alive.


Adaptability is key. That's our theme this week because 'constant change' is our world's favorite oxymoron. In this week's "Brew Box" we have: Updates on May rents with a dash of future forecasting. A few growth tactics and tools that may help make up for any lack of rent coming through. Your remote work hack of the week (we've been fully remote for years so we've got some goods to share here).


MAY RENT
undefinedGood and bad news here. According to the National Multifamily Housing Council, 87.7% of apartment households paid full or partial rent by May 13 which is 3% higher than the rate we saw this time last month. Although, incomplete rent payments are still on the rise.

The unemployment rate is above 14% with 36.5 million Americans out of work. Rent payments from the unemployed that are being paid could be coming from a mix of stimulus checks, unemployment benefits, and savings, but with much of the country still shut down, these resources may start to run thin.

A new $3 trillion relief bill called the HEROES Act has passed in the House which would include $100 billion in rental assistance and also includes $75 billion in mortgage relief. Though, there's very little confidence that the bill will pass the Senate.

With eviction moratoriums being extended through the summer in many states, what's a Property Manager to do to adapt?


ADAPTABILITY TACTICS
Amidst any chaos, communication is key. Just ask anyone who's done a trust fall experiment and forgot to tell the person to fall backwards not forwards... 

               By now, you probably have a policy in place for how you're working with residents that can't pay rent that was created depending on the legalities of your specific state. Ensure you're communicating as much as possible with your tenants about this policy and have accessible documentation of it.

If you don't have rent default insurance, now is a good time to look into those options. Below are a few of the ones we recommend:

Surevestor
Steady
Rent Rescue

You may also want to check into companies that offer security deposit alternatives that keep you protected and help residents save on some cash in that department: 

Obligo
Rhino


As far as adapting to what may come in terms of limited rent payments, think about the tenants and residents that can pay rent right now and where opportunity might lie there. For example, some companies offer resident benefit packages or monthly subscription services that benefit the resident and help generate extra revenue for the property manager. Many companies, like Latchel, even offer a complimentary fee waiver so that you can put your best foot forward when implementing these tenant packages.

Latchel has a product called the 24/7 Home Assistant that bundles their maintenance coordination services with a few other high quality resident benefits. Residents who decide to opt-in are charged a small monthly fee that gives the property manager an additional $4/unit/month. Residents who cannot afford to opt in do not have to, and those fees are waived for the Property Manager so they not only get immediate profit, they still get maintenance coordination services at zero cost and free up time to focus on other areas of the business.

A similar model is also out there for filter delivery services like Second Nature or Filter Six


REMOTE HACK OF THE WEEK

Get Slack! It's a free chat tool for your teams where you can organize discussions into channels. And, it has a lot of great features that help streamline processes

OUR SLACK HACK

Before our daily standup, team members complete survey forms that are integrated into slack answering questions like (1) “What did you accomplish yesterday?”, (2) “What are you completing today?”, and (3) “What is blocking me?”. Responses are recorded and displayed in the appropriate slack channel for other team members to read. Now, everyone in standup already knows each team member’s status and can focus on blockers and questions.



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This newsletter is a fantastic read! Every week it's something different with marketing tips, up-to-date statistics, and hilarious commentary that I'm sure property managers will really appreciate. I know I do.

- Mike G., Property Manager

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