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The year 2020 started out with hope and prosperity ; a new decade , an election year and another chance for fresh beginnings . Unfortunately , in a matter of weeks , the coronavirus caused a global pandemic and began influencing economics and policy in ways we never could have predicted . Layoffs and hiring freezes came in droves , and millions across the nation were suddenly out of work . Every industry was hit in one form or another , but housing was at the top of the list of concerns . For a brief few days there was unsubstantiated panic that apartments were not safe because of common ventilation systems . Clearly this subsided and apartment homes became one of our society ’ s greatest assets to safely work and live .
Coloradans experiencing job loss and reduced hours worried about housing costs and turned to Colorado ’ s rental housing industry for assistance . With no precedent for handling a global pandemic , the Apartment Association ( both AAMD & CAA ) and the industry were thrown into a predicament . Uncertainty dominated everyone ’ s lives more than ever before . However rapid as things were changing , most figured out we needed to adapt and be informed . Our industry in particular thrived on quality information in order to make those necessary changes . The long , arduous year to follow would give the phrase to “ pull yourself up by your bootstraps ” a different meaning in the rental housing industry .
Call to Action
First things first – the rental housing industry needed to provide solutions . As members , renters and the general public were reeling with questions , the Association developed a list of FAQs to offer clarity , which quickly became the primary resource for rental housing concerns in Colorado . The majority of March and April was spent gathering every possible resource to help with utilities and rental assistance available to members and their renters .
Housing quickly became a focus due to job loss and a plea by public officials for people to work from , learn from , shop from - and most importantly - stay at home . Media coverage increased , and between AAMD & CAA our resources reached more than 43.9 million people during these initial months . Colorado ’ s governor mentioned CAA ’ s “ relief guide ” as a notable resource in a statewide press conference and the National Apartment Association added that CAA had one of the best COVID-19 recovery programs nationwide . “ The dissemination of information , especially early on , was extremely helpful both to our organization and the industry as a whole ,” said Zvi Rudawsky , long time AAMD member and owner of Boutique Properties .
Industry Impact
Rental housing providers grew concerned in making ends meet as residents began to struggle with paying rent . How would properties pay employees ? How would property owners pay their own bills and care for their families during this crisis ?
A halt in rent payments would quickly impact rental housing providers ’ mortgages . While rent payments only make up 39 % of mortgage payments , a critical expense to avoid foreclosure and a loss of housing , 27 % of rent payments go toward paying employees , 14 % goes to property taxes , 10 % goes to capital expenditures and 9 % goes to owners – each of which are critical expenses for operating businesses , sustaining the economy , protecting jobs and supporting the community . In addition , when rental housing providers are faced with foreclosure , they aren ’ t able to pay taxes , causing a larger chain reaction in supporting public workers such as first responders and teachers .
Rental housing providers understood the temporary set backs and were willing to work with their residents in creative and flexible ways to maintain their homes .
As the pandemic continued , Colorado residents threatened a “ rent strike ”, which would have turned things inside out . Instead , the Association stood tall with media stories illustrating how this would have completely exacerbated the situation and renters were calmed , educated and encouraged to continue to pay their rent . Housing providers reached out to their customers in ways they never had before , working with residents to help solve whatever challenge they may have been facing . Ultimately , the industry as a whole was forced to get creative to keep Colorado ’ s rental community afloat – for all parties involved .
Finding Creative Solutions
As the rental housing industry was getting hit from different directions , AAMD & CAA , its members and the industry were all determined to make things work . Immediately , the Association secured 20,000 masks and provided them to members in need .
Rental housing providers worked with residents to develop restructuring agreements , freeze rent increases and late fees , and www . aamdhq . org MARCH 2021 TRENDS | 23