Renters In Las Vegas Growing Increasingly Desperate Amid COVID-19 Pandemic

LAS VEGAS, NV – With the coronavirus pandemic taking its toll upon the Las Vegas economy, there remains some light at the end of the tunnel as the Strip is set to reopen this Thursday. While that is good news for most, some renters who have been laid off or furloughed are still awaiting financial relief in the form of unemployment benefits and they are growing increasingly desperate despite the rental market itself managing to weather the storm, according to reports.

Leading up to the pandemic, which has brought the national economy to a near-standstill, the Las Vegas real estate market was skyrocketing after nearly a decade of dormancy due to the mid-2000’s recession. Construction was rampant, housing was scarce, and rents were rising. When the pandemic hit, real estate was one of the few industries allowed to continue to conduct business, albeit with numerous alterations to increase safety. And while the market certainly took a dive, it did not collapse, and experts are expecting a potentially speedy return to business as usual once restrictions are lifted.

Nevada Governor Steve Sisolak had mandated that all non-essential businesses close in March to help curb the spread of the coronavirus; he also introduced a temporary freeze on eviction and foreclosure proceedings amid rising unemployment statistics, with the number of those without jobs in the state hitting 28.2 percent.

However, that isn’t making things any easier by renters struggling to meet their monthly payments; according to Nevada HAND, a Southern Nevada organization that operates approximately 4,200 apartment units, there has been a significant increase in the number of individuals requesting help in paying their rent. Overall, however, Nevada HAND noted that the number of tenants that have not made their rental payments is not unusually high, possibly due to furloughed or laid off employees receiving severance or other assistance from their employers.

Shelter Realty, which manages over 500 single family homes, townhomes and condos has had 94.2% of their Las Vegas tenants pay their rent in full for both April and March. In addition, property management company TruAmerica Multifamily, which owns and runs over 5,500 apartments in Las Vegas, also said that a great many of their tenants – 86.4 percent – are still paying the rent on-time, despite some Southern Nevada residents facing delays in obtaining their unemployment benefits. Reports indicate that low-wage workers, including those who work minimum-wage jobs or who might not have adequate savings, are suffering worse than others that were more financially sound at the time that the pandemic hit.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – Experts are currently weighing in on the Las Vegas real estate scene and the changes that are being forced upon it – both in the here-and-now as well as long-term – due to the ongoing coronavirus pandemic.

The housing market in Las Vegas has been bruised and battered by the pandemic as lawmakers have instituted a series of mandates to keep the population and non-essential businesses under lock-down in an effort to halt the spread of the disease, which has claimed over 100,000 lives in the United States so far (102k+ as of today). And while these efforts have proved to be helpful, the short-term impact upon the economy – with many businesses closed, tourism halted, and unemployment skyrocketing – has been brutal.

One of the most affected industries in the Southern Nevada region has been the previously-booming real estate market. Sales have dropped as families lose jobs and worry about their ability to purchase a home and lenders tighten mortgage requirements, but there are also potential long-term impacts that many experts note could change real estate for years to come.

For example, some experts are noting that the pandemic could reverse the current trend of living in densely-packed, city-based downtown areas – where residents are currently cooped-up in tiny apartments during the quarantine and social distancing difficult to maintain when venturing out – with a switch in preferences to the suburbs, which have more options for getting out and experiencing nature safely.

Also, a trend toward renting may be in the cards, as the financial hardships many people are currently enduring – combined with a weakened economy – may be taking the concept of home ownership out of the cards for the time being simply due to affordability concerns.

Another side-effect of the pandemic is that people are spending more time in their homes, with many also working from home; in doing so, many people are realizing that they actually may want a larger home to accommodate the extra time they are likely to be spending there for what could potentially be, the next year as we deal with the fallout of the coronavirus, including a potential flare-up and resurgence come this fall and winter.

For those with more financial cushioning, experts are predicting that more well-off Americans may actually choose to invest in a second home. During the pandemic, many people with second homes fled their primary residences to more comfortable and secluded abodes that they owned in places like the Hamptons or Poconos. With that example before their eyes, it’s possible that more people might set up a situation like that in case the coronavirus rears its ugly head once again soon.

And finally, the very nature of property sales will likely be changed going forward by the coronavirus. Real estate agents, in an effort to adapt to the crisis while still doing business, began offering “virtual” home tours, video walk-throughs, and a plethora of other services. In addition, the typical mountains of paperwork involved when it comes to closing a deal are in the process of being overhauled and streamlined where possible.

As you can see, the coronavirus pandemic – despite the fact that it’s current run appears to be nearly brought under control – will nonetheless have lasting effects upon the real estate industry, both in Las Vegas and nationwide.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – The infamous “Underground House” of Las Vegas, a “doomsday bunker” built in 1978 by Avon cosmetics executive and subterranean living enthusiast Jerry Henderson, made headlines last year when it was put on the market. The one-of-a-kind dwelling, located 26 feet under the soil of Southern Nevada, is still on the market for a whopping $18 million, according to recent reports.

Originally costing $10 million to construct, the 5,000-square-foot underground house – situated within a 15,000-square-foot steel-reinforced concrete bunker – is an elegant construct that features numerous amenities, including a pool, terraces, and a waterfall. The look and feel of the home itself remains to this day distinctly influenced by the design aesthetic of the era it was made in- the 1970’s. There is also a generator and a 1,000-gallon water tank.

Everything isn’t all below the ground, however; included in the $18 million asking price is a 2,300 square-foot, two-bedroom house located above-ground that serves as a gateway to entering the underground house. Also included are all of the property’s existing furnishings and one year of caretaking.

The house’s current owners – who have remained un-named, instead selling the property via Stephan LaForge of Berkshire Hathaway – note that the novelty of the house’s unique design, combined with the difficulty of replicating it elsewhere, make the $18 million price tag completely justifiable.

“The coronavirus might draw out the eccentric billionaire buyer who wants to hide out the situation in a bunker in Las Vegas,” LaForge said. “Just to dig the hole today would cost $1.5 million.”

Previously, the property sold in 1990 for $1.3 million after Henderson passed away, and again in 2005 for $2 million. The current owners whom are unknown bought it in 2014 for $1,150,000, and have had it on the market for over 500 days. The underground house has two bedrooms and three baths, a vintage 1970’s-style kitchen, a large living room with beamed ceilings, a stone fireplace and a theater. Natural lighting patterns are automatically maintained to simulate the passage of daytime into night, and a faux “backyard” is accessible via sliding glass doors and features artificial grass, trees, swimming pool, a fountain, BBQ, and a small cottage.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – The arrival of the Raiders NFL team to the Las Vegas region has sparked numerous aspects of the local economy, creating jobs and attracting businesses and even fans that have deemed it necessary to transplant themselves to the new city of their beloved team. But the latest news is that the team’s new Henderson-based headquarters and practice facility has had an interesting effect of essentially doubling the sales of nearby high-end homes during the first quarter of 2020, many in the $1 million range.

This has been dubbed in some real estate circles as “The Raider Effect.”

In addition of existing homes costing in the $1 million range in the area surrounding the Raiders’ Henderson headquarters jumping up to twice their normal levels so far this year, sales of residences in general – both new and existing, at all price points – have increased as well.

According to recent reports, 32 homes costing $1 million or more were sold in the first quarter of 2020, spread out among Seven Hills, Anthem Country Club, and Southern Highlands, all of which are situated within the corridor surrounding the Raiders’ $75 million headquarters. In contrast, that same region only saw 17 sales of such financial magnitude in the first quarter of 2019.

Obviously, not every home sale in the area is influenced by die-hard sports fans wanting to be in the vicinity of the NFL team’s new base of operations – opening in late 2020 – but it does reflect how much the Raiders’ headquarters has contributed to the overall growth of the Henderson region, leading to an increase of retail, jobs, and construction that has brought new residents from all walks of life seeking homes.

And of course, some of those homes were likely purchased by Raiders players themselves as they begin the process of uprooting themselves from their previous home of Oakland, California, where the team had previously been playing for the majority of its existence. The Raiders will be playing out of the newly-constructed Allegiant Stadium, scheduled to open in July 2020, although the currently ongoing coronavirus pandemic may cause potential delays to that plan.

Photo: Billboard on the Las Vegas Strip announcing that the Oakland Raiders NFL team are moving to Las Vegas in 2020. Photo credit: Steve Bruckmann, December, 2018, Shutterstock.com, licensed.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – According to recent reports, apartment rental rates in Las Vegas have shown some degree of lowering amid the ongoing coronavirus pandemic, and once the summer hits, prospective renters could expect to see that trend continue. Typically, in the summer season, rents in Vegas tend to grow, but the circumstances surrounding the pandemic are unprecedented, experts are saying. Amid stay-at-home orders and governmental mandates that non-essential businesses must remain closed in order to curb the spread of the coronavirus, many Southern Nevada residents are finding themselves embroiled in mass unemployment and with limited financial means.

With that being the case, many local landlords and property management companies are finding themselves forced to curtail rent increases, or in some instances, even rolling them back to a degree. The Nevada State Apartment Association notes that rental increases in the region are typically 6 to 7 percent annually; however, this year, it has actually gone down by a half percent so far.

If the current pandemic continues to cause economic havoc in Las Vegas, the rate of rental vacancy is expected to increase as some residents are forced to move back home or in with friends; while stimulus checks and unemployment insurance is currently helping those out of work make rent, this is only a temporary solution, many say, and more assistance is needed.

Las Vegas has begun the early stages of re-opening its economy, with a limited number of restaurants being allowed to open their doors for business under strict social distancing and sanitary guidelines. However, it is currently not known when the Vegas business scene will be allowed to fully reopen, or how long it will take the city to recover from the economic damage the lock-down – in effect since late March – has wrought.

In addition, some desperate local businesses have announced their intention to reopen against Nevada Governor Steve Sisolak’s orders, risking fines and jail time. However, experts are saying that it will not take long, once Las Vegas is back in business, for the economy to recover and the rental market to begin to trend upward once again.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – With the ongoing coronavirus pandemic, crushing financial issues are causing people living in Las Vegas, Nevada to re-think home purchases due to a shaky, uncertain future brought about by lock-down orders placed upon the populace in order to curb the spread of the disease.

Reports are coming in of hopeful couples who have placed sizable deposits on homes – sometimes in the tens of thousands of dollars – only to have the rug pulled out from under them by losing their jobs or being furloughed by their employers. With their incomes suddenly removed from the equation, many buyers are finding themselves in an untenable situation- mainly, the very real possibility of not being able to get their deposit back on a home purchase they can no longer afford to make.

Throughout Las Vegas, home buyers are stuck in a quandary- whether or not to cancel buying their homes and eat the loss of their deposits, or tough it out despite the financial risks and see what happens?

In March 2020, government mandates resulted in the closure of many jobs and businesses that were deemed non-essential, effectively shutting down the city’s lucrative tourism industry and leaving many without ordinary sources of income. That month, the number of unemployment insurance claims filed ballooned 2,125 percent from the same period one year prior, with a record-setting 208,869 residents signing up for assistance.

The spring season is typically a busy one for the Las Vegas real estate industry; however, the scourge of coronavirus has caused record drops in sales, with a 28.5 percent month-to-month drop in home sales – representing only 1,970 single-family dwellings – occurring in April.

Despite the financial uncertainty in the region, many homebuyers are making the decision to stick it out and see what happens. However, Vegas home builders are also feeling the crunch, with a low 459 contracts signed in April and 215 cancelled sales; this represents a major drop from the over 1,000 sales a month during the previous three months this year.

Also, in an attempt to provide some degree of security for potential home-buyers, some real estate firms are attaching addendums to their sales contracts offering some protection for both parties, including the ability for buyers to recover their deposits in the event of financial distress brought about by the pandemic. It is hoped that this addendum – dubbed the “COVID Clause” – will help families who were mulling over possibly buying a home to feel safer about taking the plunge and, subsequently, assist in helping the marketplace to recover.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – According to recent reports, the economic impact that the ongoing coronavirus pandemic is having upon the Las Vegas real estate market continues, causing a substantial drop in the number of homes sales from March to April and into early May.

Rampant job losses reported amongst mandated stay-at-home orders and non-essential business closures in order to contain the spread of the coronavirus has dried up Las Vegas’ main source of income – tourism – and as a result, the normally busy spring home selling season has experienced a major speed bump. In April 2020, 1,971 single-family homes were sold, representing a 28.5 percent drop from March. In addition, the number of homes put on the market to be sold in April – 2,516 – represented a drop of 30.2 percent from March.

The home building industry, which had been ramping up efforts in the past year in order to meet the previous high level of demand for housing prior to the pandemic, has also been feeling the pinch; the number of contracts signed by builders in April experienced a 56 percent drop from March, with only 459 signing on the dotted line.

Lenders have been doing their part to alleviate the issues causing the plunge in sales by attempting to lower borrowing costs for prospective homeowners; sliding mortgage rates have proved to be helpful, but nonetheless, numerous buyers are getting cold feet and many are still not biting due to fear over their immediate financial futures.

As for unemployment in Las Vegas, it is approximately 25 to 30 percent. However, perhaps there is a light at the end of the tunnel. Despite the drop in builders’ contract signings, cancellations have slightly decreased, and Nevada Governor Steve Sisolak has begun the first phase of jump-starting the state’s economy by allowing some businesses to re-open on a limited basis. These developments will have a corresponding effect upon the real estate market, but regardless it will still be a slow climb to return to the status quo – or – the new normal, whatever that is.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – According to recent reports, a new “coronavirus addendum” – nicknamed the “COVID Clause” – has been adopted by the Las Vegas real estate market in an effort to instill confidence among buyers who may be holding off on taking the plunge in purchasing properties amid the ongoing coronavirus pandemic. Since the end of the mid-2000’s recession, the Las Vegas real estate market has been on an upward swing and, in recent years, has been setting records in terms of skyrocketing property values and overall consumer and developer demand. However, with the advent of the coronavirus outbreak – which causes the respiratory disease COVID-19 that has resulted in over 76,000 deaths – sales have been dipping due to numerous stay-at-home orders and the mandated closure of non-essential businesses by state and local government.

Homes, condos, and properties in Vegas are still selling, but the number has been shrinking. Real estate agents have been attempting to roll with the punches and adapt by holding virtual home walk-throughs and dealing with customers online as much as possible, but in order to restore a sense of security on both sides of the equation – both buyers and sellers – the “COVID Clause” has come into existence.

Created by the Las Vegas Association of Realtors, the clause is a new addendum to housing contracts that essentially states if either a buyer or a seller is being negatively impacted as a result of the coronavirus pandemic – such as the loss of a job – they will have a layer of protection.

Usually, contracts have “force majeure” clauses that allow for parties to delay performance or actually get out of certain obligations in the event of unforeseen or uncontrollable events such as the coronavirus pandemic, including allowing for time periods and dates to be extended, however, this is an added protection.

The clause isn’t only there to protect buyers either; it is also there to protect sellers, who have been hesitant to put more properties on the market due to the currently lowering demand, as well as more strict requirements put out by lenders. Ultimately, these series of circumstances have resulted in fewer choices for those looking for a place to live in Las Vegas, and the addition of this clause into housing contracts – you can read the details HERE – are expected to help to stabilize things – at least until the pandemic finally ends and life returns to – the new normal.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – While Las Vegas is feeling a variety of short-term negative impacts from the ongoing coronavirus pandemic currently hitting our nation, a prominent high-rise developer is noting that there could be long-term benefits, as eventually new business and residents seeking to economize could be driven to Southern Nevada from neighboring states. Strict stay-at-home orders and the closure of businesses deemed non-essential have brought the Las Vegas economy to a near-standstill and subsequently slowed the previously skyrocketing local real estate industry. However, Uri Vaknin, a partner at KRE Capital LLC, noted that while some high-profile deals have indeed gone awry amid the financial uncertainty brought about by the coronavirus outbreak, there nonetheless have been a few glimmers of hope as well that could lead to better things.

For instance, from March through early April, a number of expensive condo sales went under contract in downtown Las Vegas; Vaknin said that this is due to a number of residents and investors in neighboring states such as California – where the high cost of living is making the stay-at-home orders financially unfeasible – taking the plunge and finally moving to Southern Nevada, which has been lauded for it’s much more affordable lifestyle.

“Californians have historically made up a large percentage of our buyers for all the obvious reasons, including traffic congestion, quality of life, high taxes, pollution and unaffordable housing — all things for which the Golden State is known,” Vaknin said. “While COVID-19 is everywhere and can’t be escaped, a few of our buyers have mentioned their concern over being in lock-down in homes that are relatively unaffordable long-term and in areas with high taxes and other quality-of-life issues.”

This trend could continue as more economic refugees seek to flee the expense involved with living in California, as the overall financial impact of the coronavirus pandemic is likely to be felt nationwide for years to come. The fact that local economies will be impacted for such a potentially long period of time will likely encourage those who live in neighboring states to finally move in an attempt to live a more affordable lifestyle in nearby Las Vegas.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – According to recent reports, the Las Vegas Strip-based property that the Tropicana Hotel and Casino currently occupies has been purchased by Gaming & Leisure Properties Inc., formed in November 2013 as a corporate spin-off from Penn National Gaming. The company owns 44 casino properties, and operates two of them.

As a result of the ongoing coronavirus pandemic sweeping the nation, Penn has been facing money problems brought on by resort closures; currently, they have 41 properties that are closed due to governmental stay-at-home mandates and business shutdown orders, which is causing serious financial issues for the company. Currently, Penn has approximately $730 million of cash and equivalents, according to reports.

In order to preserve their liquidity, Penn sold the land occupied by the Tropicana to Gaming & Leisure Properties Inc. for $337.5 million in rent credits, finalizing the sale on April 23. The rent credits will be applied to existing leases beginning in May.

Going forward, Penn will continue to run the day-to-day operations of the Tropicana for the next two years, or until the resort and land are sold. If Penn sells within the first year, they will receive 75 percent of the net proceeds above $307.5 million; if the sale occurred during the second year, they will receive 50 percent of the net proceeds above the same amount, $307.5 million.

Going forward during the pandemic, Penn will be reducing their daily operating costs, lowering compensation to its executives and board of directors, and has furloughed its 26,000 nationwide employees. Penn shares began a sharp decline at the end of February falling from $38.28 to today’s $17.87, as of press time, 3:45 PM.

“We believe that these collective steps will allow us to successfully weather the state-mandated closures related to the COVID-19 crisis,” said Penn CEO Jay Snowden.

The Tropicana Las Vegas is a franchise of Hilton’s DoubleTree chain. It offers 1,467 rooms, a 50,000 square foot gaming floor, and 72,000 square feet of convention and exhibit space.

Editors note: The particular photo of the Tropicana Las Vegas featured in this article requires editorial credit to Kobby Dagan, Shutterstock.com, licensed.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – The North Las Vegas City Council recently unanimously voted at an emergency meeting to pass an ordinance allowing fines and other penalties to be imposed upon landlords and property managers who are in violation of state and city emergency anti-eviction decrees.

Amid the state of emergency brought on by the ongoing coronavirus pandemic, Nevada Governor Steve Sisolak had issued a statewide moratorium on March 29 against evictions, citing the economic issues faced by residents in light of strict business closure and stay-at-home orders. But some landlords have nonetheless defied that decree and have locked out and/or evicted tenants who have been behind on their rent.

The eviction decree by Governor Sisolak applies to all renters in the state of Nevada, be they monthly or weekly, residential or commercial, and applies while the state of emergency is still in effect; in addition, all late fees for back rent during the emergency period are waved. However, the non-eviction order does not apply to individuals who pose a threat to either their property or to others.

The moratorium had a mixed response, with some legal advocates supporting the move while others supported landlords and property managers, noting that they also have their own bills to pay throughout the crisis.

The North Las Vegas City Council, on a vote of 5 to 0, approved an ordinance that will seek penalties imposed upon anyone who violates Governor Sisolak’s decree – or any similar decrees issued by the city of Las Vegas – including fines in the amount of up to $1,000 a day as well as the potentially revoking the businesses licenses and permits.

In addition, according to Councilman Isaac Barron, misdemeanor charges resulting in jail sentences up to six months could also be imposed upon violators. The new rule went into effect immediately following the council’s vote, meaning that enforcement could start right away. “The goal, very specifically, is to stop a handful of bad-actor landlords and property managers from locking people out for failure to make rent,” he said.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Editors Correction: An earlier version of this article mentioned the ordinance was passed this week; it was passed in early April.

LAS VEGAS, NV – Despite two on-site workers testing positive for coronavirus – which causes the respiratory disease COVID-19 – it was announced this week that work would continue on the new home of the Las Vegas Raiders NFL team, Allegiant Stadium. The $2 billion, 65,000-seat venue is expected to be completed in July 2020 in time for the 2020 NFL season, currently scheduled for August 16.

Most recently, a worker for the Mortenson-McCarthy construction company tested positive last week for COVID-19, but the company noted that strict social distancing guidelines at the worksite prevented the infected worker from coming into contact with others, minimizing chances of the disease spreading further. A previous worker had tested positive for COVID-19 in March.

Mortenson-McCarthy representatives relayed their “heightened concern” for the safety of their workers, and have made adjustments to their labor volume and the timing of shipment deliveries to increase the precautions taken at the worksite.

Much of Nevada is currently under a stay-at-home order issued by Governor Steve Sisolak, with only businesses deemed to be “essential” allowed to remain open. Construction projects, which have been included in the “essential business” category, are still allowed to continue, but nonetheless a number of projects have been cancelled or postponed until the pandemic has subsided. Also, some contractors have reported delayed shipment of materials needed for their projects from China and Italy, areas of the globe where the coronavirus has hit the hardest.

Allegiant Stadium isn’t the only active construction site in Las Vegas with workers testing positive for COVID-19; recently, four workers at the Resorts World construction site and a worker at the Circa site have also tested positive for the disease.

In the wake of the ongoing pandemic, the Nevada Occupational Safety and Human Administration (NV OSHA) recently sent safety guidelines to construction companies state-wide, documenting precautions and procedures to ongoing projects to adhere to.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.