By now it is clear to all of us Landlords that COVID-19 is going to have a significant impact on how we run our business and manage our tenants.

The Government’s recent exit strategy report has stated:

• Unemployment is rising from a 40-year low at the start of the year; around 1.8 million households made claims for Universal Credit between 16 March and 28 April.
  
•  If the current measures stay in place until June and are then eased over the next three months, unemployment will rise by more than 2 million in the second quarter of 2020.
  
• Workers in those sectors most affected, including hospitality and retail, are more likely to be low paid, younger and female. Younger households are also likely to be disproportionately hit in the longer term, as evidence suggests that, following recessions, lost future earnings potential is greater for young people.
  

With all of this in mind, if you haven’t done so already, you need to assess your tenants’ personal circumstances i.e. their demographic; their family situation; what kind of employment they are in; if employed, how are they likely to be affected.

We’ve already spoken about communicating with your tenants but it is SO important that we continue to keep the lines of communication open with them over the coming months, not only so you are able to offer assistance, but to prepare ahead for potential loss in rent payments.

No one can fully predict where we will be by the end of the year, but the more we continue to look ahead and keep up to date with our tenants, the better prepared we can all be.

The Government report also states, “The world will not return to 'normal' after COVID-19; much of the global economy is likely to change significantly. The UK will need to be agile in adapting to and shaping this new world if the Government is to improve living standards across the nation as it recovers from COVID-19."

I think this is exactly how we need to think about our business too, we need to be adaptable and open to change when and where we can.

In the mood for more strategic thinking?

There's plenty more where that came from...