The COVID-19 pandemic has led to significant changes in how we live and work. For Bay Area apartment owners, the widespread use of “work from home” and other remote options by the most significant Bay Area employers have resulted in permanent changes in where people live and work. As high tech workers continue to transition to working at home, the marketplace will be disrupted.Already, high tech centers like the cities of San Francisco and Mountain View are experiencing an exodus of tenants and downward pressure on rents as renters move to more affordable cities and suburbs to work from home.
Bay Area apartment owners not only will have to go through the changing demand for rental housing, but also must adapt to tougher local and state government regulations as payments are deferred and evictions are delayed. This will require more diligence and increased paperwork in managing rent collections.
Oh, and statewide rent control is back on the ballot this November with Prop. 21. If passed, owners would have their rent increases limited on turnover and lose certain homeowner protections.
Now more than ever, owners need to stay on top of ever-changing trends and surround themselves with the right support system. Quick, tactical could make or break how an investment holds up in these trying times. If you’re seeking out any guidance or clarity, feel free to reach out to our team.