Astorian covid impact report

ASTORIAN.COM/COVID
Property Manager
COVID-19 Impact Report
Spring 2020

Welcome!
Since the start of the quarantine, our team at Astorian has spoken with over
100 property managers around the country to form an assessment of the
current coronavirus situation and how to move forward.
We hope you find this resource guide helpful and would appreciate any and all
feedback.
With that, we bring your the 2020 Property Manager Impact Report.
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Overview
Health and Safety
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Temperature Screening
Rent Collection
Deliveries
Emergency Maintenance and Repairs
Capitalizing in Crisis
What's Next
Special Reports Catalogue
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It goes without saying that the health and safety
of your staff, tenants, and stake holders is the
number one priority.
By now most managers have implemented basic
safety protocols such as hand sanitizer
dispensers, amenity lockdowns, and increased
cleaning schedules. This is the new norm until
there is a cure for the virus, which will take at
least 18 months to reach public circulation.
COVID-19 Operations Guideline
Resident Exposure Best Practices
Sample Infectious Disease Control Policy
Sample Resident Template Letter
Webinar: A Resident Tested Positive, Now What?
Cleaning and Disinfecting Your Facility Guide
EPA List of Disinfectants for COVID-19
We’ve pooled a list of standard protocols and forms
to assist you:
From the National Apartment Association:
From the Center for Disease Control:
Health and Safety
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Overview
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Deliveries
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Another significant step is implementing temperature screening. While an
imperfect method as it’s possible to carry the virus without a fever, some
essential businesses are already running temperature screens for
personnel. It is reasonable that buildings with high foot traffic introduce this
practice for staff and outside vendors entering common areas and tenant
spaces. Companies performing these screens are turning away people with
temperatures of 100 degrees or higher.
The National Law Review has indicated temperature screenings in the U.S.
does not violate employee privacy given the pandemic, however, in normal
circumstances it may. Even during the pandemic they cautioned employers
to beware potential mishandling and public relation issues.
Several temperature systems exist in the market today and can be
procured for your facilities through Astorian’s marketplace for
competitive bidding > Request Pricing Here
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Overview
Rent Collection
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Financially unaffected by COVID-19
Financially affected by COVID-19
Financially affected and applying/have applied for federal aid
The National Multi-Family Housing Counsel has reported that "69
percent of households had paid their rent by April 5; this compares to
81 percent that had paid by March 5, 2020, and 82 percent that had
paid by the same time last year.” That being said, May rents are
expected to provide the clearest signals of current conditions.
Astorian will update this report then.
We also recognize that the percentages of tenants who made April
rent will vary significantly depending on region and building class
type. Unsurprisingly, we found the coronavirus pandemic had little
impact on tenants who paid over $2000/mo. in rent but exacerbated
payment issues for tenants who lived in lower-cost units.
Generally speaking, we advise property managers to separate and
monitor tenants in the following categories:
For free filing resources for your business, visit
FileFederal.org
Rent Collection
-12%
Change in percentage of
households that paid rent from
March 2020 to April 2020
5
Check back here in May when
we have the data to provide an
updated assessment.

Many property managers have developed a
proactive, case-by-case approach of asking tenants
for bi-weekly updates on their personal financial
situation.
If tenants have entered unemployment or are in
financial hardship, the property manager should
empathize and guide the tenant to the appropriate
applications for federal aid. If tenants have applied
for federal aid and are awaiting a response, the
property manager should take note of when
payment is expected to arrive so a portion can be
dedicated to rent.
COVID-19 Operations Guideline
Rent Collection Amid COVID-19
General Payment Plan Agreement (State Specific)
Additionally, while retention is paramount, property
managers should not hesitate to ask tenants who
blatantly cannot afford one or two months of rent to
leave. Indeed, many tenants have already broken
leases and moved away on their own volition. As
many of you can attest, an empty apartment is better
than one with a tenant who refuses to pay.
From the National Apartment Association:
Rent Collection Approaches
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Overview
Deliveries
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Handling Packages with coronavirus risks
The CDC cautions that the “novel coronavirus may remain viable for hours
to days on surfaces made from a variety of materials.” In fact, preliminary
studies show that the virus may reside on cardboard for 24 hours [1].
Given the delivery period, it is most likely the case that any virus carried on
packages will result from last-mile delivery people and not the place of
origin. In general, the CDC does not advise special precaution for packages
but lists the normal recommendations to sanitize and wash often and
consistently. [2]
[1] Aerosol and surface stability of HCoV-19 (SARS-CoV-2) compared to SARS-CoV-1
[2] How to Handle Packages During the Coronavirus Pandemic
Deliveries
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Instead of traveling and going out to eat at restaurants, consumers across the world
are tightening their purse strings to spend only on essentials—primarily food, medicine,
and home supplies—and getting these delivered much more often.
The numbers are staggering, with shopping online for groceries, medicine, and virus
protection up 100%, 198%, and 817%, respectively according to Forbes and Adobe
Analytics. These shifts put increasing strain on buildings that struggled even before
quarantines to keep up with the influx of shipments.
Some buildings who have the benefit of greater unused common space may be able to
set up docking stations for additional deliveries. More creative opportunities abound
with the possibility to leverage vacant units or even closed, nearby retail shops as
satellite package centers.
Along with space, a key to effective delivery management is communication.
Numerous package alert apps exist to notify tenants for smoother flow of operations.
Delivery Trends
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Overview
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Water Leaks or Flood
Gas Leaks
Stove out of order
Refrigerator out of order
Power outage
Carbon monoxide detector not working
No heat in apartment
No hot water in apartment
Fire
Infestation
It’s imperative to keep non-essential repairs to a minimum
during the quarantine, but when emergencies arise, the quicker
you act the better.
Delaying repairs will lead to potentially more devastating
outcomes with tenants, repair costs, and time needed to address
the situation.
Astorian’s 10 Emergency Repairs List:
Emergency
Maintenance and
Repairs
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Overview
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Health and Safety
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Leasing and Selling
The number one concern behind rent collection has
been leasing units. Alongside economic conditions, the
main challenge for prospective buyers and renters is
not being able to physically view a property.
Viewing properties is a fundamental part of the buying
and leasing process, but this has not stopped managers
from offering digital tours. The key to doing this,
however, is clarity and authenticity - prospects need to
trust what they’re seeing to commit to a fully digital
buying experience on such a significant investment.
Moving to a Digital Approach
Right now, over 85% of property managers we interviewed
have said virtual tours and marketing is an area where they
are actively investing to improve. Those who have done this
successfully have gone beyond the basics with tactics such
as videos, 3D tours, and online marketing. For many
management companies, their brand will make or break
their success here. Click here for Virtual Tour Solutions
Getting creative with offerings may also help fill vacant
units faster and create new revenue opportunities for the
building. For example, offering wifi in new units will add
value and reduce setup burdens for tenants. Simple moves
like this could justify higher prices.
Capitalizing in Crisis:
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Online Rent Collection
Now, more than ever, property managers have a call to action
to fully bring tenants online for rent collections.
The inefficiency of traditional checks and office visits to pay
rent has cost properties tremendous amounts of time and
money over the years. For property managers, manual rent
collections have created costs in the need for excessive staffs
and time spent on procedures that are performed more easily
and accurately when automated.
For years, property managers urged tenants to pay online
with incentives such as rent discounts and even burdens such
as additional fees for those who do not. It is estimated that
the average midsized property management firm loses tens of
thousands of dollars a year to collect rents offline. Now is the
time to make the shift.
Digital Amenities
While tenants are spending more time at home, this is the
opportunity managers have to build unique, lasting trust that
will increase retention.
To accomplish this, management companies are using digital
amenity providers to create and distribute content to
residents. So while tenants are unable to utilize normal
amenities, they receive similar value from their buildings in
these digital mediums.
Services that offer these virtual amenities include LIVunLtd
and astorian.com/amenities
Capitalizing in Crisis (cont.)
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Overview
What's Next
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Health and Safety
Rent Collection
Deliveries
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Rent Collection
Internal Communications
Vendor Procurement
“Many will centralize cash management to focus on efficiency and change how they
make portfolio and capital expenditure decisions… Real estate has always been highly
decentralized: many important decisions that impact cash flow have been made at the
property level… Those that do adopt lean practices and eliminate inefficiencies,
however, can buy themselves a little more time to work through uncertainty.” -
Commercial real estate must do more than merely adapt to coronavirus. (McKinsey)
Surviving the coronavirus is the first step for people and businesses, but thriving
afterwards is an entirely different battle that starts now. For property management
firms, this is the time to revisit procedures and determine where inefficiencies exist
and cure them as soon as possible. In our research Astorian found 3 areas of
significance for property management that will likely become the difference in firms
who thrive and fail:
1.
2.
3.
Preparing for What's Next
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1. Rent Collection
As noted earlier, the cost of offline rent collection hinders
property managers from becoming fully lean and efficient.
There are endless platforms that facilitate rent collections
online and most managers already have one they’ve used
for years. The key to success in this area, however, is move
quickly during the quarantine period and convert rent
collections to fully digital processes. Once this is
completed it’s possible to see more clearly where
inefficiencies exist whether it’s in extra personnel or
opportunity costs for reassigning staff to more value-add
assignments.
2. Internal Communications
Those that succeed in strengthening their position through
this crisis will go beyond just adapting: they will have taken
bold actions that deepen relationships with their employees,
investors, end users, and other stakeholders.
Without effective staff coordination, tracking, and reporting,
teams fall a part. Some companies have been forced to
improve in this area due to communication tools needed for
work from home policies. However, as an essential business,
property management may not have had the time to fully
explore the right communication systems for them. To help,
Astorian is offering individual company analysis to find a
communication platform that will serve your team well now
and beyond the pandemic. Book a time here.
Moving Forward
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3. Vendor Procurement
“The more the property owners grew their capacity for new tenants,
or added new properties to the mix, the harder it was for property
managers to find good vendors to reliably and quickly fix property
issues and keep the properties in good working order.”
iPropertyManagement. Property managers who are serious about 1.
operating lean 2. growing their business or 3. spending time on value-
add areas will bid their projects out to a competitive market of
vendors. Finding a good vendor takes time and that’s time you should
be spending strengthening your relationship with tenants and
owners.
Astorian is the only solution in the market that has invested the time
to get you competitively priced bids from vetted vendors you can
trust to keep your buildings in working order.
Learn about options to upgrade your procurement here.
In summary, the future of property management belongs to those who
prepare diligently today. Winning firms will operate lean and possess
exceptional tenant relationships. The only way to do that is to go digital.
Moving Forward
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Overview
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Health and Safety
Rent Collection
Deliveries
What's Next
(15) Special Reports Catalogue

As we assess the landscape for property managers during
the coronavirus pandemic, we find it important to home in
on the diverse realities.
This catalogue provides a deeper look at the 2020 outlook
on property management across multiple asset types:
(16) Commercial
(19) Hospitality
(22) Housing
Given the complexity and ever-evolving shifts, be sure to
adapt your perspective as more information becomes
available with time.
Property
Management
Special Reports
Catalogue
15
Introduction

Lower Density
"Phygital" World
Commercial real estate has had the most varied shifts given the
wide spectrum that it covers. To start, office space and retail
have taken the most obvious hits due to the quarantines around
the globe. The cascading effects of lost revenues have impacted
both the immediate rent collections and future lease possibilities.
Managers in these spaces will need to focus on two key aspects
of efficiency to make the most of the situation:
1.
2.
Commercial Overview
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Lower Density
The days of packed floor plans are over. When offices begin reopening it
will be critical to implement a new standard for best practices in terms of
spacing. This is true for retail as well. Ways to eliminate close quarters
will be top of mind for retailers as patrons cautiously return to stores.
"Phygital" World
The days of packed floor plans are over. When offices begin reopening it
will be critical to implement a new standard for best practices in terms of
spacing. This is true for retail as well. Ways to eliminate close quarters
will be top of mind for retailers as patrons cautiously return to stores.
Commercial (cont.)
17

Commercial:
Predictions and
Further Reading
15
As the world becomes more spread out, visibility will become a
major asset to tenants across all commercial categories.
Customers want to know every detail about the spaces they utilize
in real-time, especially non-occupancy spaces such as warehouses.
Robotics will surge in a quarantined society as stores seek to
reduce foot traffic and employee risks. This may accelerate
regulation in areas such as drone delivery.
The home office will surge in popular adoption. Service providers
in the office space may find new opportunities with individual
consumers by following this trend.
As globalism seems to contract, local warehousing will rise and
categories such as cloud kitchens will emerge more prominently.
This will significantly impact retail logistics, particularly between
suppliers and consumers.
Predictions
From JLL: COVID-19: Global Real Estate Implications
From CBRE: The Weekly Take COVID-19 Series
From McKinsey & Co.: Commercial real estate must do more than
merely adapt to coronavirus
Read More
18

Travel and lodging have perhaps been hit the hardest
from the coronavirus pandemic. There’s been a 500%
increase in cancellations and 75% decrease in bookings
compared to 2019. From the fears of traveling to the
mandated closures of short term rentals in many
markets, managers in this space are enduring a dramatic
shift.
Current outlooks suggest hospitality will require more
time than other sectors to recover given the limits on
non-essential traveling. There will be more staycations in
the near term and cities that were hard-hit with the virus
will experience greater apprehension from consumers
reentering the market.
Adopt cloud technologies that streamline operations and
reduce costs.
Attract the millennial market which is most eager to
begin traveling again.
Use this time for hotel maintenance and renovation.
Focus on meal delivery from the hotel restaurant in order
to diversify the product of hospitality.
Improve and market the cleanliness of your lodging to
consumers as they cautiously choose.
Overall, HospitalityNet and Phocuswire have highlighted their
top tips for the industry to survive and recover:
Hospitality Overview
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Hospitality:
Predictions and
Further Reading
15
Hospitality will suffer deeply in the short term, causing many
smaller and newer players to fold but it will experience a rapid
resurgence post-virus, which will further elevate large and
legacy firms. The resurgence will not be a winner take all
outcome because demand will outstrip supply and enable small
players to reemerge.
Localism will increase and thus place extra emphasis on
players’ abilities to offer unique value beyond basic lodging
which will be insufficient to attract consumers.
Predictions
From HospitalityNet: How can the hotel industry recover after
COVID-19?
From Phocuswire: Cancellations are up 500% - how bad is it for
vacation rentals?
Read More
20

Property managers in the housing sector have seen numerous
changes as explained in the full presentation, however, we
decided to highlight these four areas in particular:
A. Affordable Housing
B. Residential
C. Student Housing
D. Senior Housing
Housing Overview
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Property managers in this sector have reported high impact from the
coronavirus both in terms of health and safety as well as financial
fallouts. Affordable housing has higher vulnerability for 3 reasons:
aging populations, high volume of essential workforce, and lower
access to adequate healthcare.
Managers in this space also tend to be more hands on with tenants and
thus the quarantine has forced them to adapt more dramatically than
most. The most important thing for affordable housing is to rapidly
improve health and communication processes while leveraging as
much government aid as possible.
A. Affordable Housing
The multi-family market has not had as significant of a shift and so far
has remained stable with regard to health and safety.
The biggest shift in residential management is the adoption and
implementation of technology to operate and provide value to tenants.
In particular, communication tools to coordinate leasing, maintenance,
and procurement are receiving the most attention.
B. Residential
Student housing has been hard hit by university closures and will likely
have a prolonged decline as online education becomes a more
prominent form of delivery.
Managers in this space should use this time to renovate these facilities
while there are vacancies and attractive costs.
C. Student Housing
This area received significant attention early in the coronavirus
outbreak due to the extreme consequences of mishandling a viral
situation.
Managers in this space will experience significant scrutiny and have
already begun to adopt standards with greater cleaning and
quarantining initiatives.
D. Senior Housing
22

Housing:
Predictions and
Further Reading
15
Efficient technologies adopted during the work from home
period and the need to reduce operating costs will push
management firms to downsize particularly with
administrative staff. Those who leverage the incoming
technologies and lead process changes will become invaluable.
Universities will begin offloading real estate assets to focus on
scaling online education.
Affordable housing will shift towards greater privatization as
governments seek to offload risks and responsibilities for
public housing portfolios. This would be coupled with greater
public funding in the affordable sector.
Predictions
From the Association for Neighborhood & Housing
Development: COVID-19 Impact in NYC
From Bisnow: Property Managers are Pivoting in Real Time to
Respond to Coronavirus
Read More
23

Property management overall is poised to grow from this crisis. Decreases from one space
lead to increases in another and overall change requires focused attention to manage and
lead. As it did during the Great Depression when landlords defaulted and banks needed a way
to maintain an influx of properties, property management will adapt and to provide the
essential work of leading the built world.
Astorian will be here to support property managers through this shift.
Thank you for reading, stay healthy, and stay tuned for more updates to follow.
Final Thoughts
24

Astorian offers a unique value to managers across all asset types.
Astorian brings contractor procurement online which gives
managers the ability to work with vendors they know and access
a larger pool of vendors while keeping their entire team in sync. It
lowers costs by increasing competition, lowers risk by providing
more data insights on contractors’ quality, and reduces time
spent across procurement by eliminating inefficiencies. Let’s get
in touch if you would like to learn more.
Why Astorian?
25

Contact Us
450 Lexington Ave 2330, New York, NY, 10163
Mailing address
team@astorian.com
Email address
(646)-661-1620
Phone number

Astorian, including without limitation its officers, directors, employees, advisors, and consultants, has assembled the material in
this document for the sole and singular purpose of providing potential practices in dealing with the COVID-19 crisis.
This Guide or any part thereof does not, and is not intended to, create any relationship of any kind whatsoever, or create any duty of care between Astorian and any
other person or entity including any person or entity that may read, review, use or become aware of this Guide or any part thereof (“User”). The information is
presented “as is.” Astorian makes no express or implied representations, warranties, guarantees, or promises, that the information presented is current or accurate at
any point in time, be it presently, previously, or at any time in the future.
Astorian cannot guarantee that any strategies or suggestions described in this Guide will be effective or should be implemented by you or your organization. The
information in this Guide is not intended to cover every situation. Users should seek advice from a qualified professional before applying any information contained in
this Guide to their own particular circumstances.
The information contained in this Guide should not be used during any medical emergency, diagnosis, or treatment of any medical condition. Users should always
obtain appropriate professional advice on medical, legal, structural, organizational, personal, proprietary, public health, or professional issues. Astorian makes no
implied or express representation or warranty that the information contained herein is without risk. Furthermore, Astorian does not accept any responsibility or liability
for any acts or omissions done or omitted in reliance, in whole or in part, on this Guide or any of its contents or inferences. Astorian disclaims all responsibility or
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