BDBB Real Estate Edition Key Findings Written Report - Final - Page 4

that lowered human interaction for tenant relations and payments was reducing both resources required for payment processing and the potential for human error .

Accounting for Late Fees

65 % of respondents say they ’ re waiving late fees – at least some of the time . While 30 % say they ’ re waiving late fees across the board , the remaining 35 % say it depends on the situation – and the biggest factors by far are tenant relationships and communication .
Those communicating openly with the property owners are more likely to get a break , especially in communicating the severity of the hardship their business is suffering ; property owners express reluctance to increase financial hardship for their tenants .
Tenants who have strong positive relationships with the property owner are also more likely to get a late fee waiver . Others indicate they ’ re making late fee waivers dependent on signing payment plans to address rent deferrals , or simply building late fee waivers into payment plan terms .

Managing Mortgages and Other Expenses

While a significant percentage of tenants have requested rent deferrals , only 17 % of survey respondents indicated they ’ re somewhat to very likely to request a deferral or payment plan with their lender or mortgage holder , with the other 83 % saying it ’ s not something they ’ re considering .
60 % report applying for a PPP or EIDL loan from the SBA – a much lower percentage than other industries we ’ ve surveyed ( our overall industry survey found 76 % of respondents had applied for a PPP loan ; in our manufacturing survey , 84 % of survey respondents had applied ). Only 5 % of real estate survey respondents report filing a claim with their insurance carrier for business interruption .

The Impact of Remote Work

The widespread move to a remote workforce has left many formerly bustling offices as virtual ghost towns – and while a significant percentage of our survey respondents believe the move will have a major impact on future lease renewals , others believe there won ’ t be much of a longer-term effect .
34 % of respondents indicated they expect the impact of remote working on lease renewals to be severe , and 18 % expect it to be devastating . At the other end of the spectrum , 44 % say they expect little to no impact over the long term . 22 % say remote working will have a mild to moderate effect on lease renewals .