LOS ANGELES - April 8, 2020 - (Newswire.com)
“For real estate investors and property managers, the key to economic survival during the coronavirus pandemic is to ‘keep your head when all about you are losing theirs,’” says Alex Radosevic, a veteran real estate investor and president of Beverly Hills-based Canon Properties, Inc. Toward that end, here are his answers to the most Frequently Asked Questions he is getting from clients.
FAQ #1: Is now a good time for real estate investors to buy or sell assets in their portfolios?
RADOSEVIC: In the short term, most investors should do nothing. If you have enough cash to weather the current storm, tap your reserves of patience, hold tight and watch the markets. In the long term, the fundamentals of real estate will remain unchanged. Globally, GDP has ceased, and businesses are only beginning to assess the ramifications, but once we reach stability, commercial real estate will play a big role in restoring the economy to robust health. In the medium-term, individual investors and family offices should consult with their financial advisors to determine if it’s wise to re-balance their portfolios or take advantage of any “dips” in local or regional markets. Maintain your current trajectory, but seek out opportunities to invest in undervalued properties and projects. For now, some of my clients have pressed “pause,” while others are moving forward. What’s best for you depends on your circumstances and the condition of the markets you have targeted.
FAQ #2: Can commercial property tenants legally withhold rent during the outbreak?
RADOSEVIC: During the outbreak? Maybe. If a tenant lives in a city that has instituted an eviction moratorium, they may be able to withhold rent until the crisis is over. But once the moratorium is lifted, they will have to make up the rent shortfall. The rent will not be forgiven. Absent a moratorium, a tenant can’t withhold rent unless their lease contains “nonstandard” provisions applicable to this situation. The legal situation is changing on a daily basis, so it is impossible to give definitive yes or no answers.
FAQ #3: What should landlords and property managers do if someone in their building tests positive for COVID-19? Are there notice and disclosure requirements?
RADOSEVIC: Yes, Landlords have a duty to safeguard the health of their tenants and employees. They must notify all tenants if anyone in the building has tested positive. Landlords should consult the “Pandemic Guide for Real Estate Managers” provided by the Institute of Real Estate Management (IREM).
A member of the prestigious Forbes Real Estate Council, Alex Radosevic is one of the Los Angeles area’s foremost real estate experts.
Media Contact and Marketing/PR Consultant:
Karen Norris - Karen@CanonProperties.com
Phone: 310-273-1975 ext 106 or 424-235-8749
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Original Source: How Should Real Estate Investors and Landlords Respond to the COVID-19 Pandemic? Alex Radosevic Answers FAQs
