Ezra Beyman, Chairman of Empire National Holdings, On Tenants

There are few sectors that technology is not having an impact on and real estate is no exception. What is interesting to note, however, are some of the unforeseen ways in which technology is affecting the market. One of these ways is the relationship between landlord and tenant. Here are 3 ways technology is affecting the landlord-tenant relationship.

1. Tenants as landlords

Subleasing is not a new thing, but a national housing shortage paired with the rise in services like Airbnb and HomeAway are turning more and more tenants into landlords. This can create problems for actual landlords who own the property as they are still liable for any issues. Some landlords are addressing this by charging a flat monthly fee allowing tenants to rent out the property, while others charge a percentage of the income. Whatever course of action a landlord takes, it is important to outline any terms in a lease agreement.

2. Rise in overseas investors

Cryptocurrency in particular has made it easier than ever for overseas investors to invest in US real estate. This can cause issues for landlords, however, on many fronts. The first is that overseas investors are less likely to be dependent on rental income. They purchase properties as an investment in and of itself. While they may still rent out the property, it will often be at much lower rates than current market rental prices. Properties being rented for lower prices gives tenants a significant amount of bargaining power when it comes time to renegotiate leases.

3. Absentee landlords

Not all property owners want the responsibility of managing their rental properties full time. In some cases, they may not even live in the same area as their rental properties. In the past, landlords that didn’t want to be hands-on, would simply hire a real estate agent or property management company to manage the property for them. Now, however, with the rise in online services, it is easier than ever to manage a property long-distance. When landlords have tenants that actually take good care of their property and promptly report any issues, this can work out just fine. In other cases, however, it is the tenant that can’t get necessary services from a long-distance or absentee landlord. This can create tensions and in some cases may lead to intentional property damage or vandalism.

About Ezra Beyman

Ezra Beyman is an experienced professional who works in the real estate and home insurance industries. Ezra Beyman serves as the founder and chairman of Empire National Holdings. Ezra Beyman is based out of New York City. Ezra enjoys working in and providing for the city that has given him so much. He respects and cares deeply for his community.