Enterprising landlords turn empty properties into quarantine accommodation

Property owners with empty assets have found a niche renting vacant real estate to people who need to be quarantined thanks to the coronavirus.

Across the market, innovative operators are exploring new ways to maintain revenue during a difficult time.

Being inventive is increasingly important given the recent ban on open for inspections and live auctions. These are steps the federal government has put in place to slow or stop the spread of COVID-19 in the community.

Angela Carrick, founder of short-term rental management company Air Design Australia, says there have been mass cancellations in the short-term rental market. “The impact has been landlords making brash decisions that may not suit them long-term,” she says.

Rather than making a knee-jerk reaction, Carrick saw an opportunity and created a new service, Quarantine Homes, to safely house individuals or families who need to self-isolate.

Stranded tourists, locals needing to self-isolate and corporate travellers who want to protect their family by not returning home until 14 days of quarantine is finished are using the service.

How the property industry is adapting to the coronavirus outbreak

Being nimble and identifying a niche is essential in the current market. Carrick says there are other actions those in the property sector can take to put themselves in a good position when COVID-19 restrictions are lifted.

“Look at what needs to be done around the office. Our team is updating our listings and focusing on social media to build the brand. The market will eventually bounce back,” she says.

Julie Grove, chief executive and founder of online strata management software StrataVault, is another entrepreneur using current market conditions as an opportunity to put her business in the best possible position for a future rebound in the market. Her software is an online tool that plugs into a strata management firm’s existing systems to support efficient collaboration and communication.

“Businesses use many different applications, processes and ways of storing information in our industry. Data can be held in the building manager’s office, strata office and on individual computers,” she says.

Grove uses the Mascot Towers situation to show how dangerous storing information in this way can be. This apartment block hit the headlines last year when the building cracked, causing residents to be evacuated in a hurry.

“A remedial building company was handed digital dumps of information including hard-copy paperwork and drop box logins. They didn’t know where to start when trying to sort out this information.”

Grove’s software draws all this information together. The solution is relevant in the current climate, given it’s unwise for strata managers to hold face-to-face meetings with owners’ corporations. The technology can bring together all the information everyone in the strata chain needs in one place.

Virtual solutions for off-the-plan apartments

In light of social distancing, it’s also going to be difficult for real estate agents to take people through display suites for off-the-plan property developers. This creates an opportunity for sites such as Good Designs, which is an independent property review site.

Jessie Summons is the head of outreach and development at technology accelerator Startmate and an adviser to Good Designs.

“Real estate agents can’t take people through display suites for off-the-plan properties so some of them are sending potential buyers to Good Designs to give buyers a better understanding of properties they are considering. Digital traffic to the site is up as buyers do their research online instead of at the display suites,” she says.

Real estate agency McGrath is also switching to interactive virtual tours for listings and live streaming of auctions. “We are video calling through Whatsapp or Zoom as much as possible to ensure we stay on top of our business,” says senior sales agent Tiffany Sly.

“We’re also holding private inspections so we can control who’s coming and going with everyone’s health our priority. We’re using video for tours and for calling clients whenever possible. The positive is it’s 2020 and we have many virtual communication tools available. So we can continue to serve our clients just as well virtually as we do face-to-face,” she adds.