How Corona Virus Has Changed Business

June 12, 2020

How Corona Virus is Supporting a New Era

As business reopens across the US, Canada, UK, Australia and Germany, we’re all wondering what lingering effects the Covid 19 crisis will leave with us.

Most companies have had employees working virtually, including management. And they’re trying out new era digital software tools. For us, the issue is how are these trends affecting our competitiveness and profitability. Are we responding too late with tech solutions?

Opportunity is Positive

If your first thought about the recent trends are negative, consider that some business practices may be changing for the good. For a few businesses, these changes might even keep them viable.

It’s more than just tech adoption going too. There is a cultural and management evolution taking place. To get on top of it all, we need to know more about what’s actually happening.

Employee Satisfaction Survey

Work at home, video collaboration, online financial transactions, have been shown to increase productivity and cuts costs. Those cost cutting benefits likely can’t be turned away at a time when businesses are desperate.

A recent survey by globalworkplaceanalytics found some promising results from their survey of pandemic era work at home respondents.

Here’s some insights from the Globalworkplacecanalytics survey:

⦁ 68% said they were successful with work at home
⦁ only 6% said they don’t want to work from home
⦁ 77% are satisfied with productivity at home and enjoy the flexibility it creates for them
⦁ employees want to keep working from home at least 2 days a week on average

A Year and a Half to Try Tech Out

Realtors, service contractors, home inspectors, mortgage agents, and property management staff have been using new tools (landlord apps, property management software). With the lockdown, they had little choice.

Multifamily landlords for instance, are deeper into tech due to the scale they operate at, so their commitment to online business tools will continue.

Landlord Apps

At this point, it looks like Covid 19 is going to accelerate tech adoption. After all, we’re not out of the pandemic yet.

Work at home and tech productivity software adoption will be hot until a vaccine is distributed. That might take a year or more. This fall and winter, the pace of tech adoption could accelerate as businesses face efficiency issues, e.g., less revenue against rising expenses and taxes.

And if a second wave of Corona Virus appears, that will ensure work at home is a real thing.

Saving money and time is the mantra of landlords and property managers for the rest of 2020. They’ll be leaning hard on tech to be successful. Those companies that don’t use it might be at a decided disadvantage and at risk.

The actual financial numbers won’t be in for a while, but let’s take a deeper look at trends and changes happening.

15 Ways Property Management is Changing this Year

Here’s some important trends that could affect your property management company in 2020/2021:

new tenants from out of town — they’re coming for the cheaper rent because they can work remotely.
more tenant screening scrutiny — we’re not out of the rent default/cancel rent/moratorium period. Ensuring your marketing hits the right audience and you acquire the best tenants is a life or death situation for your business.
tenant screening — attracting high quality tenants is job number one going forward for landlords. Cash flow and reduced receivables are vital for survival now.
online shopping and home delivery — this will continue as Costco, Amazon, Walmart and other all offer the service, as customers want to avoid an in person visit to overcrowded retail spaces. Parking spaces for delivery vehicles might be needed.
online rent payment — oh yes, this saves a lot of time in administration and banking tasks. And it encourages tenants to be more responsible, with your text message reminders of course.
virtual or self guided rental showings — leasing agents and remote landlords can show rentals via video with the prospective tenants being physically at the unit for a view. Or, they arranging to let the renter prospect in to view it on their own.
virtual leasing — during the pandemic, renters were reading and signing leases online, and this activity could save landlords a bundle. Leasing agents too, can work remotely or at home. It will necessitate new property management apps and landlord apps.
new apartment building rules — ensuring tenants, seniors and tenants don’t contract Covid 19, the flu, and other horrible illnesses in your building gives landlords peace of mind. This fall, more property managers will be looking into one way hallway traffic rules, where practical.
electric air cleaners — landlords may buy UV air cleaners for their duct systems along with electric foggers and misters to keep main lobbies and common areas cleaner. Of course, rules about hand washing and social distancing will keep tenants respectful of each others rights and health.
work at home — work at home could be an opportunity for the bright rental entrepreneur. A variety of digital amenities will allow extra revenue generation. That might compensate for increased wear and tear on the rental units.
migration to rural regions — renters like home buyers are moving out of dense urban areas for several reasons. They’re looking for more space for work and play. Landlords will be renovating to accommodate them in 2020 and 2021.
a return to mid-rise buildings — as people want to avoid elevators and aspire to have a “garden setting” to relax and enjoy.
Roomier rental space — Landlords will be forced to design and build rental accommodations that fulfill tenants 24 hour, at home, work/play lifestyles.
more virtual management tools — the physical office might be on its way out. Tenants would phone or book repairs via online property management software. Although some states mandate an onsite property manager, a trend to virtual management will increase.
business consolidation — more small business property owners will experience struggles and may have to sell their properties. Companies with better balance sheets will buy them out. A lack of revenue growth plus rising rent defaults and costs leaves them vulnerable. Larger portfolio investors will move on the opportunity to scale up their portfolio which they’ll manage via property management software.

Stay at home workers will need simple, easy to learn and user friendly software. See why property management pros are choosing ManageCasa because of its simplicity and all in one convenience.