As the Managing Director of Bay Property Group, Ethan Brown is committed to helping you power through your real estate challenges.

Bay Property Group is pleased that the pandemic is trending in the right direction with fewer hospitalizations, reduced infection rates, and the prospect of widespread vaccinations.

While the reopening of businesses is a positive sign, we clearly are not back to normal yet and until we slay the beast, there will be hardships that impact the rental property market. 

After rents have tumbled throughout the region, the numbers suggest that rent prices have stabilized.

Of course, we have no blanket policy of slashing rents. Our property managers are not driven by raw numbers but take into account many variables in our pricing strategy, always with your cash flow and return on investment being top of mind. 

During these fluid times, the fundamentals of property management have not changed. Some core components are communication, bookkeeping, and knowledge of the law.

As you are aware, Sacramento has crafted new legislation to manage the economic fallout of the pandemic by inking SB 91.

This is really an extension of tenant protections that went into effect through a previous piece of legislation (AB 3088), but the new legislation allows cash-strapped landlords to recoup 80% of COVID-related rent debt if the tenant qualifies for rental assistance and the landlord agrees to forgive the remaining 20% of back rent. 

To distribute aid, local governments were given the option to use a state program, have a hybrid of state and local distribution, or go it alone. In concert with Bornstein Law, we’ve put together resources to better understand SB 91 and how to tap into rental assistance funds in this hub. 

Fortunately, not many of our clients will have to avail the program.

Through a combination of making prudent choices in the selection of tenants, communicating with those tenants throughout the pandemic, and responding to their needs, the vast majority of residents in the properties we manage are faithfully paying rent. 

Although we have largely bucked the trend of non-paying tenants, there are still some rough patches in the portfolio of properties we manage.

We strongly advise any clients who have experienced any shortfall in rental income during the period of April 1, 2020, through March 31, 2021, to recover 80 cents on the dollar by tapping into the rental assistance funds being offered. 

As always, we are able  to answer any  questions our clients may have in an ever-changing regulatory regime. 

Reverting back to our earlier statement, communication is a critically important hallmark of good property management and even more so during a pandemic. We will certainly continue this tradition and keep you apprised of updates.

Until then, please remain safe.

Godspeed,

~ Ethan Brown