AssureLease Helps Property Owners Face the COVID 19 Pandemic
NEW YORK, July 1, 2020 /PRNewswire/ -- How can AssureLease help property owners during the COVID 19 pandemic? Andrew Loughrane, President of AssureLease offered the following insights: "We are in difficult and challenging times in our personal lives and in our business environment. In the past three months the COVID 19 virus has caused considerable disruption to the Real Estate Industry through state government shut-down orders and subsequent civil authority actions. We are seeing industry challenges not faced before and in an unparalleled scale. The Fed and the Treasury have made remarkable efforts to help businesses survive, however the Real Estate Industry faces specific challenges that few others face. They include potential increases in taxes to make up for state and municipal budget shortfalls at a time when tenants simply cannot meet their obligations.
The potential for forbearance fatigue on the commercial side and then extended high unemployment rates hitting the multi-family side could signal a drop in rent receivables as we move into summer and early fall. As owners look to find improvements to make in their balance sheets moving forward, AssureLease can be a good option to look at to help increase NOI or to simply help stem losses. Our program has proven to largely offset or mitigate negative impact due to COVID 19, based on current statistics (rent receivables year over year, defaults, damages).
While we never predicted or modeled our program to offset a pandemic (what else may be next?), we are seeing that an owner that controls their own program through AssureLease would have the financial resources kept on their balance sheet and not allocated as a profit or expense to Insurance companies. AssureLease is not an indemnity or surety program, both of which are most profitable to the insurer and have large expense allocations built in.
AssureLease designs and underwrites our program on a case by case basis as each portfolio has slightly different characteristics which demands a more specialized approach than a pre-modeled or off-the-shelf product. The next two to three months will really be critical to see what becomes the new normal and how the Real Estate industry evolves to face this historic challenge. AssureLease can help owners protect their balance sheet moving forward."
About AssureLease
AssureLease provides a customized tenant default insurance program for property owners that covers lost rent, damages and eviction expenses which have historically been a negative impact to NOI. The company offers an individual program for larger multifamily owners as well as a group program for smaller multifamily owners with a minimum of 300 units and can also serve commercial and student housing portfolios.
For more information on AssureLease contact John DiSpaltro at [email protected].
SOURCE AssureLease LLC
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