The much loved and respected PM Consultant from Real, IQ David Faulkener has been conducting a survey of PM Companies
Now I don't always agree with David, but I totally respect his passion for our industry and his aim to share information
As far as rents go, we have had the odd tenant miss a week or two , those that asked for reduced rent for a month or two sorted and aware their period of grace will come to an end
However as far as data goes I would deal with a sudden spike such as this as an extraordinary event not something to be 'averaged'
We may see rents fall by 10% towards the end of the year when people are normally in competition to secure the property they desire, or there may be a property shortage. The reality is, no one knows, no one predicted Covid and we can not predict the impact.
What we can do is Hope for the best but Plan for the worst
So we need to be organised, and be investigating grants for thing such as Healthy Homes , makings sure our Landlord Insurance is as good as it can be and general fiscal management
After the first week of the lockdown, companies who completed the survey highlighted a rise in arrears from 3.23% at the beginning of the c
risis to 6.57%, Faulkener says.
“This is inevitably going to rise and some areas, such as Queenstown, are going to be hit far worse than others.”
However, the survey shows that opinions are more divided about how much rents could fall or even if they will fall.
Over 40% (43.75%) of the companies surveyed believe rents will hold, while the rest were split as to how much rents could fall by.
While 9.38% think they could fall by 0-5%, 15.63% think they could fall by 6-10%, 18.75% think they could fall by 11-15%, and 12.50% think they could fall b
So it is anybodies guess - from my perspective - It's case by case and dependent upon the quality of your property, tenant, and Property Manager -
Lets all raise a hand at 4pm and pray for Level 3 today as our economy needs it
( in my humble opinion )
Warm regards to you all from Tracy-lee & the A Grade Team, Nicole, Tina, Jojo, Cynthia, Tim & Grace , & Lin & Brendon