Houston Real Estate During Covid

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Real estate in Houston During Covid - Written by Donna Coquilla
Real estate in Houston During Covid - Written by Donna Coquilla
Real Estate in Houston During Covid by Donna Coquilla

A new analysis shows that more than 1,000 people in the Houston area have already died of a coronavirus, according to a new study.

With millions of people across the country claiming unemployment due to business disruptions linked to the new coronavirus pandemic, many tenants will be unable to pay their rent when it matures on April 1, prompting calls for a nationwide rent strike. Big retailers are trying to renegotiate their leases as sales fall, employees are laid off and in some cases even pay no pay at all. The unemployment rate is at its highest level in more than a decade, according to data from the U.S. Bureau of Labor Statistics. When the rent falls due next week, administrators may be able to agree a short-term payment option for existing tenants without immediately taking eviction action.

In the face of difficult closure decisions, employers should be aware that, under Article 2301, they may be able to pay qualified wages to workers during the COVID 19 crisis. Forbearance is essential because rent and mortgages are due and employers are also handing out their final paychecks to the millions of people laid off during the recession.

Of course, this does not mean that companies or tenants of companies are not eligible for SBA loans under the PPP, but if it is more difficult to pass the employee verification to qualify, you may be denied access to these funds as described below. There are further facilities for owners and tenants who are not covered by the SBIA credit facility. You should consider waiving the monthly rent if the apartment is empty for months after an eviction.

How do you see the real estate sector changing in the short and long term and how does this affect you as an investor?

For tenants applying for SBA loans, the answer is relatively simple: most commercial tenants will be doing some business, and most of them will have been shopping at the mall or have run a property management company that is itself an employer (legal or otherwise). It seems to be not only retail or residential property, but also tenants who are active in these sectors. Some landlords claim retailers are exploiting the pandemic to cut their rents. While many small businesses face coronavirus problems, large retail tenants are likely to have the financial means to pay their rents, while many smaller businesses do not. I would normally enter into a business relationship with the property’s management companies, which, it turns out, represent my employer for legal and other purposes.

While one might assume that landlords who rent space to large chains have billions of dollars in assets, many commercial property owners are not able to accept a late rent. Recent legal battles over controversial large-scale leases have involved a number of big corporations, including Wal-Mart, Target, Macy’s and Walmart.

Landlords will be able to apply from Monday 17 August, and tenants will have a seven-day window to apply from 24 August. Those who have lost their jobs may have to make difficult choices when they log on to the overloaded Texas Workforce Commission website and then wait three weeks for an unemployment check. Tenants also have the option to apply during the 7-day window, but the period will vary depending on whether the employer is a seasonal worker. The period can be adjusted or shortened depending on how the companies operate, according to a news release from the Texas Department of Economic Development.

In the short term, we are seeing an increase in retail vacancies and a decline in demand for retail workers in Houston.

Capping unemployment to support the economy is a key pillar of propping up the housing market and we are seeing Australia’s major lenders announce that distressed borrowers can take repayment leave if needed for the next six months. Fannie Mae and Freddie Mac have asked utilities to give 12 months of leniency to borrowers who have run into financial difficulties because of the pandemic. The Federal Housing Finance Agency said Monday that landlords with government-backed loans could face foreclosure if they don’t evict their tenants, but eviction of tenants who can’t pay has been suspended because of the virus. Deferred action is being taken for apartment buildings whose loans are being foreclosed on, as well as single-family homes, the agency said Monday. The two largest US mortgage providers, Fannin Mae and Fannin Mae, have also offered apartment owners a one-year reprieve on their loans.

If a homeowner were to sell his home, he could owe money on the loan after the sale, Fannin Mae said. Landlords can pay full rent for six months if the tenant has not paid, it said, but only if they pay at least $1,000 a month.

New stores opening next year are likely to come from strong operators that are well capitalised, which the report says will lead to fewer restaurant bankruptcies and vacancies in the future. New store openings in the coming years are likely to come from stronger operators who can capitalize well, resulting in fewer restaurant outages and more vacancies in the coming years.

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