The Coronavirus pandemic and the resulting economic shutdown has created a nightmare scenario for millions of multifamily tenants. However, the pain and uncertainty doesn't stop there. Tenant job loses and inability to pay rent create financial hardship for landlords. Without rent being paid, landlords can't pay their mortgages and staff. It's a vicious cycle and for some it could be devastating.
This NPR Planet Money Podcast episode highlights the financial hardships of one Ohio tenant and his landlord. It's a great interview and captures the emotion of the struggles brought on by this pandemic.
From an asset manager's perspective, this is the time to be proactive, strategic, and vigilant. It means communicating with investors about the realities of what we're facing, maintaining strong capital reserves, keeping abreast of changing state and municipal policies, and most importantly, being supportive and sympathetic to our tenants (our customers) as they persevere through tough times.
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