rent

What to do to reduce damage when trading real estate for rent during the epidemic season

in Real Estate

As the segment most affected by the impact of the Covid-19 pandemic, rental real estate has continuously fallen into a bleak situation from 2020 until now. What should rental real estate investors do in this situation? What is the solution for the rental real estate market during the pandemic? Chintaisaigon.com’s “Masteri thao dien for rent” discussed this issue.

The program guests were Mr. Phong Cao, Director of CMA Investment and Consulting Company, and Mrs.Giang Nguyen, Director of Luxury Trading and Service Joint Stock Company, giving general comments on the real estate market context. Rental in the current period and forecast the recovery trend of this market in the coming time.

Accordingly, Mr. Phong CAo said that for rental real estate, the segment that is most affected today is tourism and resort real estate. Since the pandemic outbreak in 2020, this segment had almost frozen when foreign visitors decreased by 90%. Moreover, domestic tourists, due to the prolonged impact of the long-distance also reduced sharply. Many hotels, resorts, and resorts were closed, losing money and even transferring because they could not continue to operate. In addition, amid the Covid-19 storm, the segment of townhouses, warehouses, and serviced apartments also suffered heavy impacts. Not only did the rental demand decline, but the wave of rental payments and deep discounts took place on a large scale. Covid-19 is also changing the position of lessors and lessors.

 Mr. Phong Cao said that the biggest obstacle to the current rental market is the prolonged distance that affects the business and employment of many people. Resort real estate will need a long time to recover, and the restart time of this type is unlikely to happen in the short term when the epidemic may have to last until mid-2021. However, the demand for real estate rentals is still high. People’s assets are still very stable, especially the market for renting apartments, motels, and business premises will soon recover as soon as the gap ends.

Predicting the crisis and recovery cycle of rental real estate, Mrs. Giang Nguyen said it was too early to talk about the recovery of this market. The resilience of rental real estate Estella Heights for rent depends on the opening of the economy, townhouses and apartments can recover quickly, but resorts will be challenging to recover. The office segment still has activity in the epidemic situation; quite a lot of businesses still need to find offices for rent, possibly due to the business impact of needing to reduce the size or move the rental area to reduce operating costs. This moving is also the segment that is likely to recover soon after the epidemic. In addition, the type of room rental is still running, but the landlord is forced to adjust the rent. Although the townhouses are affected, after the epidemic is active again, the apartments will also recover. Still, the type of apartments for foreigners will be affected longer because it is difficult to open to international guests in the short term.

To improve the situation of today’s landlords, both experts offer many practical solutions. In the short term, landlords will temporarily have to accept a rental reduction plan to support consumers, and the reduction may be high or low depending on specific types. In the long term, the landlord will need to recalculate the rental income plan and the length of the contract to suit both parties. This transition is a reasonable time for tenants because there are opportunities to find many good products with attractive rental prices and rental periods. However, investors participating in this market should note that if the financial surplus can drop money right now because the real estate price is coming back, you should not rush to participate if you want to make short-term profits. After all, it isn’t easy to judge. Predict when the market will recover after Covid-19.