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How COVID-19 Is Changing the San Francisco Rental Property Market
BanCal Property Management • July 9, 2021
What You Need to Know About Stimulus, Eviction, and Moving Forward
Working around the COVID-19 pandemic has been a challenge for a lot of landlords and San Francisco property managers. At BanCal Property Management, we were prepared to adapt because we had already invested in great technology and we already had a consistent set of policies and procedures in place to help us work through the changes in marketing, leasing, and managing rental homes.
The good news is, things are looking better. With vaccines available to almost everyone and infection rates dropping, the State of California and the San Francisco rental market can imagine getting back to some version of normal.
However, there are still a lot of hills to climb. Rental prices have dropped, people are moving out of San Francisco, and property owners have been confused about the eviction moratorium and what they can and cannot do.
If you’re renting out property in San Francisco right now, you should be thinking about:
- Retaining your current tenants
- Avoiding eviction if you can
- Investigating resources for yourself and your tenants
UNDERSTAND THE AMERICAN RESCUE PLAN AND HOW IT CAN HELP LANDLORDS
President Biden signed a $1.9 trillion stimulus package into law in March, hoping to address issues such as unpaid rent, lost eviction opportunities, and the debt tenants and landlords have to face. The stimulus package included $25 billion for rent assistance and $5 billion for assisting with utilities.
1. RENT RELIEF IS AVAILABLE FROM THE LATEST STIMULUS BILL - FIND OUT IF YOUR TENANTS ARE ELIGIBLE
The stimulus provided $25 Billion in funding for the Treasury Department to create an Emergency Renter Assistance Program. This will be administered at the state and local level, and since San Francisco is such a large city, funds will be distributed directly for this program.
Renters can get assistance that includes up to 12 months of rent and utility payments if they qualify, with additional three months if there’s an extenuating need and funds are still available. It’s the tenant’s responsibility to apply for this relief, but the landlord can assist.
If a tenant is approved, funds will be paid directly to you - the owner. This is an excellent way to recover any unpaid rent that has accumulated over the last year.
Make sure you’re willing to participate. If the rental property owner declines assistance, the money will be paid directly to the tenant. It’s better to have it come to you, so you can be sure that money is put towards rental payments. To apply on behalf of your tenants, you’ll need their consent.
Eligibility is based on income, unemployment status, and a threat that the tenant could be facing homelessness without the relief.
2. FEDERAL EVICTION MORATORIUMS HAVE BEEN CALLED INTO QUESTION BUT CALIFORNIA MORATORIUMS REMAIN IN PLACE
The CDC had a federal eviction moratorium in place, which several federal courts have recently struck down, claiming the government overstepped its authority.
That doesn’t impact our moratorium in California. The state’s moratorium, which provides even more protections to renters than the federal ban, is in effect until the end of June, and there are currently discussions underway about what should happen - whether it should be extended or other protections put into place.
Remember that the eviction moratorium in California does not forgive any debt from rent not paid.
3. UNDERSTANDING THE IMPACT OF COVID ON SAN FRANCISCO’S RENTAL MARKET
While managing eviction moratoriums, rent and mortgage relief, and resident relationships are the immediate fires that have needed tending over the last year and a half, there’s also the broader issue of what this means for the local rental market.
San Francisco is unique in the impact that COVID has had. Rents have decreased, although they seem to be stabilizing from the initial drop. There’s more vacancy in the market, as many tenants no longer have to live close to home. Remote working has become normal, and that has sent employees who can work from home into areas that are cheaper.
The drop in rental prices has not exactly drawn more people to the city. Data has shown that approximately half of the tenants in and around San Francisco lost income since last March, and the economic suffering has especially affected low-income residents and low-wage workers. Even with unemployment benefits and stimulus checks, more than 10 percent of the city’s population is struggling to keep up with rent payments.
This will require flexibility and creativity from owners, landlords, and San Francisco property managers.
How Can We Look Forward?
With every challenge comes opportunity. This is a good reminder that resident relationships are important. They reduce the likelihood of late payments, eviction, and property damage. Put together a tenant retention plan and make it work for you and your residents.
PROFESSIONAL PROPERTY MANAGEMENT HAS NEVER BEEN MORE NECESSARY
At BanCal Property Management, we’ve been managing San Francisco rental homes since 1987. We have seen the market rise and fall, and we’ve worked through every possible high point and low point. With the new laws in place, the pandemic recovery slow to reach San Francisco, and a lot of confusion and misinformation out there - San Francisco property management is critical.
Contact us to talk about what all this means for your property.
As an investor, you need to know the laws or partner with a professional San Francisco property manager who can keep you above board.
Welcome back to understanding your options for rehab loans. In Part 1 , we explored the benefits and various types of rehab loans available to help you finance your property. We also discussed the key qualifications and terms to consider when applying for a rehab loan. In this second half, we will explore the practical aspects of securing a rehab loan and finding the right lender for your needs, helping you navigate the options, and identifying the best fit for your investment strategy. Additionally, we will dive into the rehab loan application process, providing you with a clear understanding of the steps involved and what you can expect along the way. Whether you're a seasoned investor or just starting, these practical tips and strategies will help you unlock the full potential of rehab loans. So, let's continue our journey toward financial empowerment and dive into the essential steps for securing and utilizing rehab loans effectively.
Are you a real estate investor looking to take your business to the next level? Understanding your financing options is crucial in empowering your success. One popular financing solution for real estate investors is rehab loans. Whether you're a seasoned investor looking to flip properties or a first-time investor wanting to renovate and rent out a property, rehab loans can provide the necessary funds to complete your projects. We will explore the various options available to real estate investors when it comes to rehab loans. From traditional banks to private lenders, we will break down the pros and cons of each option, helping you make an informed decision about which financing avenue best suits your needs. By delving into the world of rehab loans, you will gain insight into the different types of loans available, the eligibility requirements, and how to maximize your chances of obtaining the necessary funding. Unlock the power of rehab loans and take control of your real estate investment endeavors today. So, whether you're a novice or an experienced investor, this is the ultimate guide to understanding your options for rehab loans. Let's get started on your journey to financial empowerment.
Our CEO, Tammy McNaught , was recently interviewed by ideamensch , where she shared insights into her remarkable journey and vision for BanCal Properties. As a real estate pioneer with a sincere passion for making a difference, Tammy built a 25-year career in both retail and property management. Her journey began in the retail world, where she worked her way up from an entry-level position to running multiple categories and managing operations in North and South America, the UK, and Ireland. Driven by a desire to bring her visions to life and work independently, Tammy transitioned to the dynamic and ever-evolving field of property management. As the owner of a woman-owned business, she’s dedicated to tearing down barriers and adding value to every project, distinguishing BanCal Properties from the competition with measurable benefits to investors who partner with her in the competitive Bay Area market. Tammy lives and works in San Francisco. She has a natural ability to inspire and empower others to work toward a common goal, achieving remarkable outcomes both individually and for the company. When she isn’t leading her superstar team at BanCal, Tammy enjoys an active lifestyle, traveling, and exploring the world. Check out her interview below:
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The rise of remote work has revolutionized how we approach our professional lives. No longer constrained by the physical boundaries of an office, workers now have the flexibility to work from the comfort of their own homes. As a result, the rental market in cities like San Francisco is undergoing a transformative shift. In this blog post, we will explore the impact of remote work on San Francisco's rental market and provide practical tips on navigating the changing landscape.
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With the constant advancements in technology, nearly every industry has experienced transformation, and the property management sector is no exception. In San Francisco, where real estate is a key driver of the local economy, the role of technology has evolved to become an integral part of property management practices. In this blog post, we will explore the impact of technology on property management in San Francisco, discussing how it has revolutionized various aspects of the industry. From leveraging artificial intelligence and automation to optimizing operations and enhancing tenant experiences, technology is shaping the future of property management in the vibrant city.
In the bustling cityscape of San Francisco, a fascinating trend is quietly reshaping the traditional fabric of living spaces—welcome to the era of co-living. As the cost of living continues to skyrocket, residents are seeking innovative solutions to meet their housing needs. Enter co-living spaces – a concept that is rapidly gaining popularity and transforming the housing landscape. Picture a place where shared quarters and amenities redefine how individuals approach housing in the Bay Area. It's all about embracing the spirit of togetherness and community, offering an innovative solution to the ever-growing demand for affordable and sociable living arrangements.
The leasing world can be a complex environment, influenced by many factors that ultimately determine rental rates. As a property owner, landlord, or real estate professional, it is crucial to understand the leasing market's drivers deeply. Each factor plays a significant role in shaping the leasing market dynamics, from the location of a property and market demand to economic conditions and property features. Here are some factors that play a significant role in shaping the leasing market dynamics.
San Francisco, with its vibrant neighborhoods and diverse activities, attracts millions of visitors annually. As a property owner, the idea of capitalizing on the city's popularity with short-term rentals may be appealing. However, before diving into this venture, it is important to consider the pros and cons associated with short-term rentals in San Francisco. This blog post will explore the benefits and drawbacks of operating short-term rentals in the city and provide valuable insights for property owners.
Managing seasonal trends in San Francisco's rental market is essential for landlords and tenants alike. The city's rental landscape experiences significant changes during the summer and winter seasons. By being aware of these trends and implementing effective strategies, landlords can maximize their rental income while tenants can secure the best deals. Follow along to explore San Francisco's summer and winter rental market dynamics.
As a landlord in San Francisco, protecting your investment and ensuring the safety and satisfaction of your tenants are important. One way to achieve these goals is through regular professional property inspections. While San Francisco has a unique rental market and specific regulations, these advantages can apply to landlords in any location. Follow along to explore the benefits of professional property inspections, specifically in San Francisco.
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At BanCal, we understand the importance of adaptability and continuous improvement to drive success for property owners, landlords, and real estate professionals. With this same spirit, we are excited to unveil our rebranding efforts, representing a pivotal moment in our journey. We present our refreshed logo, symbolizing our growth and dedication to serving our clients better. With careful thought and consideration, we have redesigned our visual identity to embody the professionalism and expertise that BanCal has always represented. Our new logo features a clean and modern design, incorporating elements that reflect the intricacies of property management. These subtle nuances communicate diligence and commitment to delivering exceptional service at every turn. At BanCal, we understand the importance of adaptability and continuous improvement to drive success for property owners, landlords, and real estate professionals. With this same spirit, we are excited to unveil our rebranding efforts, representing a pivotal moment in our journey. We present our refreshed logo, symbolizing our growth and dedication to serving our clients better. With careful thought and consideration, we have redesigned our visual identity to embody the professionalism and expertise that BanCal has always represented. Our new logo features a clean and modern design, incorporating elements that reflect the intricacies of property management. These subtle nuances communicate our attention to detail and commitment to delivering exceptional service at every turn.
When it comes to managing properties in San Francisco, it goes beyond the task of maintaining brick and mortar. At BanCal Properties, our commitment lies in creating vibrant communities that enhance the well-being of residents. With unwavering dedication to exceptional service, we possess a deep understanding of the local market. Collaborating closely with property owners and tenants, we strive to cultivate environments that foster connection, engagement, and a higher quality of life. Our comprehensive range of services encompasses everything from tenant screening to property maintenance, ensuring that properties are well-maintained and visually appealing. However, our approach extends beyond the realm of physical property management. We place importance on nurturing a sense of community, facilitating seamless communication, and supporting local businesses. Through our organization of social events, implementation of sustainable initiatives, and active involvement in supporting local charities, we are more than just property managers - we are dedicated community builders in the heart of San Francisco.
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We are thrilled to share some incredible news that fills us with pride and gratitude. BanCal Property Management has been selected as a finalist for the prestigious 2023 IREM REME Awards in the 'Excellence Award - Corporate' category. This recognition stands as a testament to our commitment to delivering unparalleled value to our clients and our unwavering dedication to the field of property management.
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Take a look at why technology is so important to how we lease, manage, and maintain homes, and why investing in it is such a good idea.
Rental inspections are an important part of protecting the condition and value of your San Francisco investment.
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While remote working doesn’t always benefit San Francisco rental property owners, there are still opportunities to be found when attracting remote workers to your rental unit.
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