#Elena’s December 2020 Real Estate Update for Investors
December 23, 2020
Could Single-Family Rentals be the Best 2021 Strategy?
THE COVID EPIDEMIC MIGHT HAVE CHANGES THE RENTER PREFERENCES FOR A LONG TIME. Lower population density, more stay-cation backyards, and extra rooms for home offices are now in higher demand.
The sudden changes brought by COVID have resulted in a larger than usual number of renters looking to leave the city for the suburbs, creating a shortage of rental housing throughout the DFW, especially for houses with pools and larger back yards.
The 2021 Outlook for Multifamily Housing in North Texas
MANY RENTERS PUT OFF BUYING A HOUSE because they struggle to save up for a large down payment.
As per The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker, a survey of 11.5 million units of professionally managed apartment units across the country found that 89.8 percent of apartment households made a full or partial rent payment by December 20.
Despite the still-uncertain economic outlook for the 2021, it appears that the multifamily housing will survive the COVID epidemic and remain in a relatively strong position.
As per Jonathan Kern, President and Chief Investment Officer of Civitas, North Texas multifamily real estate typically shows resistance to the national economic hardship due to increased demand for cheaper housing. Additionally, in North Texas, alot of population increase consists of young mobile professionals who are more likely to be able to avoid being laid off during the recession and who often command higher earning power.
Overall, even though the impact of COVID epidemic is certainly being felt in the industry, the outlook for MFH in 2021 continues to remain positive.
The Next COVID Fallout may be the Wave of Evictions
THE MORATORIUM ON FORECLOSURES AND EVICTIONS MAY EXPIRE AT THE END OF JANUARY 2021. What will happen to the housing market when mass evictions start to hit the news?
The Texas Supreme Court extended the rental assistance program designed to avoid evictions until March 15. Texas Tribune reports that The Sate of Texas created the Texas Eviction Diversion Program earlier this fall in order to reduce the number of evictions during the pandemic by allowing a landlord and tenant to reach a resolution when a tenant is unable to cover the rent. See the full Texas Tribune article HERE.
Nevertheless, as HousingWire reports, unless Congress creates a payment assistance fund for those families whose income was severely disrupted by COVID, the next phase in the epidemic fallout in the COVID-hit communities may be the sudden explosion of evictions.
Some of the struggling landlords could also face foreclosures due to a lack of cash flow from the properties, or find themselves unable to maintain the properties. For landlords who are absolutely desperate to remove a tenant, here are some tips on how to do so without using the eviction process.