2020 has been a roller coaster of a year for numerous industries, and real estate is one of the hardest hit. Unfortunately, many of the hardships that came about this year because of the ongoing COVID-19 pandemic are likely to reach into the next.
If you’re looking to grow your real estate investment portfolio over the coming months, there are a few things you might want to know going into the new year. While this blog may seem overly negative, there’s still hope for a turnaround, but it might be best to prepare for the worst.
Renters will likely continue to flee cities in 2021
It used to be that people flocked to the inner-city to be closer to work, but the rise of remote work has made many people think twice about living in crowded cities, especially during a global pandemic. More and more people are seeing the downsides of living in high-density areas and the upsides of single-family homes in the suburbs.
Federal legislation and local mandates have aimed to help individuals, but have pushed many businesses to the brink of collapse.
To say these government policies have had an impact on the housing market this year is quite an understatement, and the protections offered to renters aren’t likely to end soon. 30-40 million Americans have been left unable to keep up on their rent payments, and this puts property owners in an uncertain position when it comes to cash flow and revenue projections.
Don’t compound your problems by renting to the wrong tenant
Tenant Report’s screening services can help you make the best decision when choosing who to rent to, and the service is completely free to landlords and property managers. Contact us to learn more, and keep an eye out for our next blog to learn how to turn this changing market into a big win.