According to the National Bureau of Economic Research, the United States is currently experiencing a recession. In fact, we are “in” a recession right now. Although it’s not quite like some of the recessions of the past, given that it's a direct consequence of COVID-19. However, no matter what the reasons are for a recession, it's likely that you've seen some of your renters directly impacted by the results.
For property owners in Ashburn that rely on their rental income—or have been affected by the recession in other ways—this can be quite a challenging time. Just how do you stay a successful landlord during a recession? For anyone who owns an investment property, this is a critical question. Let’s take a closer look for answers about what you can do to keep on the right track as you navigate through this difficult time from the perspective of Ashburn property management!
A quick note: This article is not intended as legal advice. However, it can be a great introduction to steps landlords can take to improve their financial outlook during a disaster scenario. If you're facing a situation that requires legal counsel, work with a competent attorney, or get in touch with the Ashburn rental property experts at RentSimple!
Know the Facts
It’s critical to know just what the facts are concerning any recession before you craft a plan to approach it.
- Ensure that you keep on top of all the current economic factors that may impact your tenant’s finances.
- Know the steps you can and cannot take as a landlord when approaching your renters, and do so carefully.
- Arm yourself with an understanding of stimulus packages, community resources, or forbearances from your lender so that you know for how long you need to extend rent collection dates.
Also, educate yourself about any local changes to Virginia’s laws concerning rent collection, eviction, and extensions during the coronavirus pandemic or any other crisis. You want to keep on good terms with your tenants because the economic situation will turn around, and when it does, you want to have a great working relationship with the great people who live in your great spaces.
Although things are probably feeling crazy right now, as the experts in Ashburn property management, we know it's important not to panic and do something you’ll regret later. Whatever steps you take, make sure they are thoroughly researched and backed by facts and a plan: you do have options if needed!
Calmly approaching any black-swan scenario with a professional outlook also helps your renters stay calm, too. When you interact with them in a way that says you've got things under control, they'll remember that you responded to the crisis from a collected perspective.
One way to maintain your cool is to have a crisis plan already developed and in place to address such situations before they ever arise.
Always Have a Contingency Plan
It’s sometimes called “Plan B,” but what it really means is you have a contingency plan. Every business needs a contingency plan, which essentially is a plan that prepares you for a worst-case scenario. In other words, what can you do if such and such occurs? How will you respond?
If you don’t already have a contingency plan, you can create one now. Here are some steps to follow to get started:
- Figure out where your resources are: In other words, where can you get help in a pinch? In a crisis, where can you go? Discover these alternatives early so that you can take advantage of them before funding runs dry.
- Analyze your pain points: Figure out your weakest points so that you can already have a plan to cover those areas.
- Start with a draft: Don’t expect everything to be perfect for the first time, but just get something on paper. Start with a working draft, and go from there.
- Get feedback: If you can, have someone read the contingency plan draft and give feedback. This is one area where having the perspective of an Ashburn property management partner can be vital.
Once you have a working plan, finalize it as start putting it into action. This is one way that property owners can have a proactive response to a crisis.
Be Proactive, Not Reactive
Don’t be like those who wait until something terrible happens: be proactive instead of reactive. In a basic sense, this is less about predicting what will happen and knowing how to be prepared before a disaster reaches a peak. It also means responding professionally as you become aware of the potential for things to change.
Reactive businesses are always running around, putting out fires instead of taking control of things in advance. You can be proactive by prepping and employing your contingency plan—and having the means in place you need to do so. If this is something that's difficult for you to handle alone, working with a professional Ashburn property management company can help give you the edge you need to stay successful.
Work With Property Management
When dealing with a crisis such as the one we’ve been facing for the last several months, there’s no better way to be proactive than to hire a property management company. An Ashburn property management company can not only guide you through these issues and how to remain successful, they can also directly handle every element of making sure your great spaces continue to generate lasting returns! With the changing environment, this will give you peace of mind knowing that someone who is on top of the current issues is managing your property.
If you find that your success is slipping during the recession, get in touch with RentSimple for a helping hand. You can also download our Collecting Rent in a Crisis Handbook to get started right away!