Rentals and COVID-19 - What you need to know
Category Property news
There is no doubt that the Coronavirus is at the forefront of our minds. ''Planning for our immediate and often uncertain future requires constant recalibration'' says Glenda Taylor, Rental Principal for Greeff Christie's International Real Estate. Each new announcement delivered by our government offers little time to prepare for the remedial actions required to fight this pandemic.
The entire rental market has been forced to adapt to the lockdown. Our agents continue to guide tenants and landlords through the impact of the quarantine restrictions based on their unique circumstances, says Taylor.
No one has been permitted to move either in or out of any property during the lockdown period. Residential tenants are assured of a roof over their heads throughout the quarantine, without fear of losing their residence, should their lease end during the imposed self-isolation. Tenants, with an extension to their lease for the duration of the lockdown, are obligated to pay the monthly rental that was agreed upon in their original lease for the duration of the extension.
Conversely, new tenants are unable to move into properties therefore delaying the start date of their lease. This delay halts the landlord's ability to derive revenue from unoccupied properties until the quarantine is concluded.
Another compounding factor is the financial brinkmanship enacted by individuals without access to savings, which limits their ability to weather this storm.
Taylor encourages that ''effective communication, with empathy and respect, is a contribution that we can all make to mitigate the anxiety that is universally shared''. Keeping your agent informed of personal variables associated with the Coronavirus enables us to act timeously in the best interests of our clients. Our experience in the market and our transparent governance are invaluable during these times of crisis.
It is too early to quantify the long-term economic and social impact of the Coronavirus. Taylor notes that ''to date, the effect of the quarantine on the property market is relatively minimal when compared to the devastating impact it has had on the tourism, manufacturing, retail and hospitality sectors''. We continue to adapt during these uncertain times, in service to our clients, while relying on our proven longevity.
Author: Greeff
