Apartment occupancy is starting to deteriorate as the COVID-19 economic crisis continues. A recent survey of Zillow listings found that 30.4% of rental listings in the service had concessions, compared with 16.2% of listings in February and 12.5% last July.
Other data providers have similar problems in the market. According to RealPage, rents fell an average of 1% in the second quarter. This was the first decline of its kind in nearly a decade.
When home owners have occupancy and pickup concerns, saving becomes even more important. You can make real savings on site.
In a newer blog entry, RealPage's Tim Blackwell said operators don't need to make massive cuts in order to see tangible savings. He writes that applying expense management practices and accounting efficiencies can help housing companies save thousands of dollars.
An excellent way to start the process is by benchmarking expenses. This helps operators understand the property's buying efficiency. Another way to make savings is to automate the purchasing process and ensure consistent supplier pricing, according to Blackwell.
While purchasing and benchmarking costs can cut costs, homeowners face another challenge related to a pandemic. With teleworking now the order of the day, many residents are at home during the day, which in theory could increase costs.
Enertiv, a commercial real estate technology company, analyzed data on the maintenance costs of office and apartment buildings to show the cost of shutting down the coronavirus. It found that apartment buildings weren't as burdened as one might expect.
"Initially, there were concerns that apartment buildings, while office buildings were being emptied, could be destroyed by higher occupancy than the systems that the operators are used to and intended for," said Enertiv. “That turned out to be wrong. It seems that many New Yorkers left the city at home while ordering, rather than living in apartment buildings. "
In the entire CRE spectrum Owners are open to technology this helps your business run more efficiently. Building Engines released a report called The CRE Technology Gap, which examined the current relationship between technology and real estate ownership. In this report, more than half of the real estate operators surveyed wanted to implement more
The technology and 84% of owners felt technology could help their business achieve all of its operational goals. Fifty-one percent of owners said the right technology could streamline operations, while 49 percent said it could help make decisions faster, and 48 percent said they could be more effective in responding to occupant needs.