COVID-19 Multifamily Roundup (March 19, 2020)
Operators Use Technology to Engage Residents
The National Apartment Association published an article, “10 Ways to Keep Residents Engaged During COVID-19.” With social distancing, multifamily operators are increasingly thinking of creative ways to use technology to connect with residents. A few of the ideas included starting online book clubs, improving social media communications, and offering fitness apps and online video streaming.
RealPage Webcast to Address Apartment Pricing
On March 24, RealPage will offer a webcast, “COVID-19: Impact on Apartment Pricing.” The property management software company’s asset optimization team will provide strategies to strengthen portfolio performance in today’s economic climate. Some of the issues they’ll address include operating with limited demand and cultivating high tenant retention.
Expect a Slower Market
A RealPage article, “COVID-19: The Unintended Consequences of “Wait and See” to the Apartment Market,” reviewed strategic options for multifamily operators. Investors still are interested in the apartment sector. “Even if returns diminish, multifamily assets project more favorably compared to other options,” wrote RealPage economist Jay Parsons. He advised landlords against slashing rents even with a lower occupancy rate. He noted owners should be mindful of their peers’ strategies. The article also pointed out the risks with greater rent control and government rules prohibiting evictions during the pandemic.
GSE Capital Rules Delayed
A HousingWire article, “Calabria Delays GSE Capital Rules Citing COVID-19 Crisis,” provided an update on government-sponsored enterprises’ processes. The Federal Housing Finance Agency (FHFA) will postpone releasing its capital proposal for Fannie Mae and Freddie Mac until the latter half of May. FHFA Director Mark Calabria stated the spread of the coronavirus will complicate the notice and comment process. However, the delay will not necessarily remove the agencies from a potential conservatorship, according to a managing director at Cowen Group.
You can find all of Arbor Chatter’s coronavirus coverage, including the COVID-19 Multifamily Roundup here. For a list of industry resources that offer helpful information related to the virus outbreak, please see our Coronavirus CRE Resource Guide.