Let’s take a look at the impact of COVID on renting.
Bob Nelson, Eugene real estate investment broker
Bob Nelson: I’m both a real estate investment broker where I’m providing services to buyers and to sellers, landlords and so forth. But also I am an investor and I invest in apartment complexes. I like residential income, although I do own some other types of food groups in the real estate investment spectrum, but I’m going to forecast there will be some pretty serious adverse impact on ownership of apartment houses in… If it isn’t happening now, but in the near future, I think it’s going to be fairly detrimental.
People will understand that if they use their accumulated wealth and we all maybe started at a particular point and have accumulated as best we can through vocational pursuits, as well as investment pursuits.
Bob Nelson: Some people like the stock market, some like the bond market and some like the real estate investment market. For those that are real estate investment oriented, there will be a different view as they look at an apartment complex, we’re being forced into a social agenda where through the landlord tenant act, we’re told that we must rent to anybody and everybody in accordance with applications received and so forth, which I think is fine.
However, there are some tenants that are particularly financially strong and there are some that are particularly financially weak, and we have an obligation to accept the weak, even potentially ahead of the line of those that are financially strong.
Bob Nelson: That doesn’t make a whole lot of sense. That’s a social agenda, which is fine, and we will live with it, just understand us there. But if you had a choice with somebody that you knew was gainfully employed and then someone that wasn’t, I would gravitate toward the person who appears to have the financial capacity to comply with the lease agreement, which includes the payment of rent and so forth.
So there are going to be some changes and as investors will view the opportunity to invest in offices, industrial apartments, and so forth, apartments have been the darling of the industry. And I think that’s going to change a bit. That’s my forecast.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.