By | Amy Sloane | Freelance Writer
Are you interested in becoming a real estate investor? Your plans for doing so have been undoubtedly affected by the recent outbreak of the Covid-19 pandemic. But this does not necessarily have to mean that your plans will have to be sidelined. The trick to adapting is to learn how Covid-19 has affected real estate investing.
The Use of Software Will Become More Prevalent
One major change that you need to know about right off the bat is the fact that many interactions will become less personal. As a result of social distancing, a great many business transactions that used to be conducted more or less face to face will now be done via the use of software and apps.
For example, if you wish to receive reliable tenant screening services from an expert, there is now software that enables this process. As a result, you can obtain credit, criminal, and eviction reports at the press of a button. This replaces the many hours of in-person research that this process used to require.
Software and online apps are replacing many of the other functions that used to be a more personal affair. As a result, much of the legwork for your real estate investing process will now be conducted online. The convenience that being able to do things over the web will have to be weighed against a lessening of face to face contact.
You May Find that Commercial Space is in Less Demand
One of the side effects of the COVID-19 pandemic for the real estate industry will be the lessening of demand for commercial space. This is a byproduct of the fact that social distancing has made many people leery of gathering in large numbers.
As a result, many business owners found that they needed to compensate for the loss of physical traffic by making a switch in emphasis. This switch was, of course, to online commerce. Even many businesses that have traditionally focused on personal interaction at a “brick and mortar” location have been forced to make this change to survive.
This means that, if you have invested in commercial real estate properties, you may have more trouble than usual in finding a tenant. There is no telling how long this trend will last. There is also no telling how long it will be before things get back to “normal” or if this is the beginning of a whole “new normal” for investors.
Commercial Space for Physical Businesses Will Need to Be Larger
For business owners who do prefer to keep a physical address, a number of changes will need to be made. One of these is the fact that the commercial space they own or rent will need to be larger. This will need to be the case in order to accommodate the new health and safety regulations that are sure to become the norm in 2020.
This breaks down into giving employees more space to work in. It also means allowing your customers more room to stretch out and be socially distanced in. Spaces will need to be wider and floor plans will need to feature more open space. The type of commercial property you invest in will have to be adaptable to these changes.
Fewer People May Want to Rent Apartments
Another major change that will affect the real estate investing industry is the fact that fewer people may be amenable to renting an apartment from you. This is once again due to the fact that Covid-19 has made people leery of being crammed together in small spaces.
The key to adapting to this change will be selecting a property for an investment that is capable of being “opened up,” The more space and latitude you give to your renters, the more appeal your property will have.
The Time to Learn About Changes in Real Estate Investing is Now
Once you begin to realize that changes have occurred in the world of real estate investing, your initiative should learn what these changes amount to. You also need to be fully aware of just how significantly all of these changes could affect your own investing career. The time for you to become better informed is now.