As the world is gripped with the challenges of the coronavirus pandemic, we are united in a fight that brings an uncertain health and economic future.
At the moment, many of us are reeling as we adapt to a new way of life and a new way of doing business. The COVID-19 crisis is unprecedented, so it is also understandable that many of us don’t know how to adapt.
You wouldn’t be alone in asking, what does COVID-19 mean to property owners?
Currently, the governments of Canada and its provinces are implementing a massive stimulus package to address the economic impact of this pandemic. At the same time, rules about how we manage our properties are also changing; so, while you’re not only considering how to manage your financial responsibilities, you’re also faced with keeping abreast of potential changes to property management in the wake of coronavirus.
Some of your key responsibilities as a property owner haven’t changed. Property maintenance, rent collection, dispute resolution, and all the day-to-day operations of investment property ownership cannot be overlooked even in these trying times. Still, it’s important to realize that many of the nuances of operations will change. For example, you want to have regular and open communication with your tenants, strata councils, and/or property managers to ensure that stakeholders are doing their part to slow the spread of the virus.
Some property owners are restricting access to communal spaces, particularly if using the space would interfere with physical distancing recommendations and occupancy limits. Additionally, cleaning protocols are stepping into high gear, and landlords, property owners, and property managers must work diligently to ensure proper disinfection and sanitation of shared spaces.
Obviously, you are also likely to have tenants that are struggling to meet their financial obligations, which may also impact their ability to pay rent. While there are rental supports in place, the Government of British Columbia is offering a $500/month relief package for renters (which is paid directly to landlords/property owners), there are also restrictions to rental increases and evictions.
Communicating compassionately and honestly with your tenants can help all parties weather this storm together – be sure to direct tenants to the government subsidies available and make arrangements for rent payment that will work for everyone. Also keep in mind, there are financial supports available for landlords too. For example, you may be able to access mortgage deferral options if you are reliant on rental income to cover mortgage payments. Additionally, tax filing extensions and deferred tax payments may alleviate some of your financial burden.
Finally, as a responsible property owner and indeed a responsible citizen, consider how you can make a move to virtual business. Video tours of properties, online or telephone meetings, and digital documentation (including contract signing and rent payments) are all examples of ways you can reduce your contact with people while continuing to manage your property effectively.