The impact of covid on property professionals part 1

Covid 19 has come as a real nightmare for business owners around the world. In property, it’ll have affected those who hold properties in a company and also those who hold personally. Whether you have a very small portfolio or you own 50 you’ll be feeling the effects of this disastrous, life claiming, pandemic.

We take a look below at a couple of types of property professional who will have been impacted during these torrid times.

 

HMO Landlords

 

The impact of Covid-19 on HMO landlords

This is an area of property that will have in some cases been left reeling from Covid-19. It all boils down to how robust the systems you put in place were. Target market also plays a part somewhat. The main issue facing Hmo landlords has been the non payment of rent. If this has been just one person in a Hmo it’s not as much of an issue. You’re going to be forgoing profit but it’s not going to be costing you.

The moment you have 3 or 4 of your tenants not paying the rent, because they are unable to do so, problems start. Not receiving the expected rental income has a knock on affect and the ability to pay the mortgage and other costs can become difficult. It’s extremely important to be communicating with your tenants and setting up payment plans if they genuinely can’t pay.

This is something they must prove and you should take a firm but fair approach. This is by no means a ‘get out of paying rent’ time. As a landlord there is some reprieve in what your mortgage provider can potentially offer you. Exploring mortgage holidays is something to think about should you really need that.

HMO landlords operating in the student market

Those who rent to the student market are likely to have felt the impacts somewhat stronger. With universities closing and international students leaving their accommodation this can spell for disaster. Whilst you may have received full payment for this term, there are questions as to what is going to happen in the foreseeable future in this space. If you are seeking to sell a Hmo fast you can always contact us and we’ll be happy to purchase yours from you.

 

holiday property rentals

 

The impact of Covid 19 on short term/ holiday let operators

This is one of the most affected sectors in the property sphere. With Covid grinding all travel to a halt, those operating a holiday let model naturally saw their bookings cease. It’s as much about being able to weather the storm than anything else.

There’s no clear indication as to when travel will be able to resume as normal or when social distancing measures will be completely lifted. Air BnB’s recent fundraise of $2bn dollars is telling. If you can ‘hang on in there’ the industry will rise from the ashes of Covid 19 and be stronger than ever.

Is there any reprieve for short term/ holiday let operators

On a positive note, there is some hope for those operating a holiday let model. While prospective overseas guests are unable to travel, there’s likely to be an increased demand in ‘staycations.’ With Brit’s unable to travel currently but still itching for a holiday, this opens up your property to more local holidaymakers.

What levels of rent you can achieve is yet to be seen, ‘something is better than nothing’ must be the mindset here however. One option for holiday let owners is to switch to the long term rental market. Depending where you’re based in the country, this could be the quickest way to get your asset income producing again.

 

Selling property

 

Options for support

Should you require urgent assistance with your property, Property Escape will endeavour to help! If you’re keen to sell your holiday let fast or sell your HMO fast don’t hesitate to get in touch. We specialise in purchasing distressed assets in timescales very few can! It’s a seamless process and a huge reliever of stress for anyone with property woes.

Get a free cash offer

Find out how much you can get for your property with Quick Buy

Leave a Reply

Your email address will not be published. Required fields are marked *