What to do? Gov't shutdown affecting the rent!

Question

Does anyone else have any issues about tenant not paying rent due to the shutdown?  She works for the IRS and she claims they haven't paid her because the gov't was shut down.  What would you do?  Show some leeway?  Say she's gotta go or any other option??  Thanks.

Theresa Harris · Answer

Only way I'd evict is if it was a crappy tenant who was always late on rent and lied.  She has no control over the situation and there will be so many people in the same situation.  Lots will have savings, but the question is how much and how long will that money last.  They are also in a bad situation with all of the firings that have happened, so the combination of lack of job security for a job that should be secure and no income for the last month is going to be hard on them.  Ask her what she can pay for Nov rent and work on a payment plan to cover the rest.

Stuart Udis · Answer

@Clinton Davis Its not as simple as saying "she's gotta go". What are the procedural requirements in Memphis to evict? How long would that take? Historically has this tenant been responsible with rent payments. If they have been, do you foresee the tenant remaining at this property for the foreseeable future? These are instances where landlords should weigh these factors in determining whether to evict or work with the tenant. If there are notice requirements, it's often prudent to begin those steps as a precaution but if this is a tenant you believe will catch up once their employment payment freeze ends it's important to communicate your desire for the tenant to stay so they don't interpret the notice incorrectly or completely shut down on you.

Brett A Brockway · Answer

Many renters will be in a similar situation at the moment, including those who may have to choose between food and rent due to SNAP benefits being frozen. As stated above, it's worth working with her if she's a good tenant - keep in mind what you'll have to do and pay in order to get the unit rent-ready and finalize a new tenant, plus the fact that a judge may very well not grant an eviction if the tenant can prove that she's not receiving any income through no fault of her own.

You could see if she can obtain a letter, paystub statement, etc from her employer showing that her salary is not being paid currently. It's also worth directing her to resources if you know of any that can help with financial hardship, food, etc - the more strapped she is for cash, the more difficult it's going to be to make up rent, so it's in both of your best interests.

Justin Kates · Answer

This is the biggest consideration IMO. I have found differing reports on what the IRS advice was to furloughed employees.

Justin Kates · Answer

Will she receive back pay when the government reopens?

What to do? Gov't shutdown affecting the rent!

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