Are landlords buying rentals right now?
We hope that this message finds you well and that 2020 is cooperating with you as much as possible. This has been a strange, chaotic year for a lot of people and we would like to update you on our progress navigating the curveballs and what landlords have been doing.
As you may already be aware, there was a series of a moratorium on evictions for non-payment of rent and they are as follows; CARES Act March thru August, State Of Alaska thru June, and CDC September thru December. This particular strategy of preventing eviction has drawn widespread criticism from across the country, leading to legal action from several states, organizations, and individuals attempting to overturn or otherwise mitigate the impact of these orders as they pertain to landlords and property owners large and small.
Everyone is affected by these orders right now even if their tenants are paying on time and in full. As is often the case with actions like these, the Federal governments’ decisions are influencing policy at the state and local levels. Eviction and small claims are being subjected to a much higher level of scrutiny from the bench this year, which increases expenses and time to resolution.
To offset this, we have been looking through a different lens on how to lease enforcement is conducted and how the cases themselves are brought to court. Our office is one of the leaders in these efforts as we explore all angles to determine how best to overcome these challenges. We have positioned RPM to work with policymakers and coordinate community housing meetings to develop solutions for our community. These group efforts have created opportunities such as the Alaska Housing Finance Corp. and United Way receiving CARES funds and processing to assist impacted landlords/tenants.
Landlords are still buying properties. RPM now has a tool called “Wealth Optimizer” where we can input property details, mortgage information, financials, and performances into the program and it provides a clearer picture of the overall value of having a rental property. For current clients, we offer this service at no additional cost. This tool helps landlords answer the question – “Is it better to keep the property as a rental or sell it?” After reviewing the numbers landlords have kept their rental, started to save for another property, purchased additional rentals, and/or sold & purchased a higher producing building. I applaud those that have taken these actions and appreciate being the chosen company to assist in their financial success during these times.
If you know a landlord that is struggling right now and needs help, please don’t hesitate to give them our number. We’d be happy to try our best to assist them because the situation we find ourselves in here in Alaska is not unique to us and we’re all in this together. We can help landlords in Anchorage, Valley, and now in Homer/Kenai/Soldotna grapple with these events.