Investor · Hammond, LA · Member since 2016 · 3 posts · 8 votes
I'm considering lowering my rents for the next 2-3 months only because of the strain that COVID-19 is causing. I am able to drop my rents considerably and still make the PITI payments. My number one goal in doing this is to retain my current tenants after this passes. I have a great tenant base at the moment who pay on time and automatically like clock work. I was considering on waiving all late fees and reducing my rents across the board by 20%. What do you guys thinks? I'd like a different perspective.
Real Estate Agent · NJ · Member since 2019 · 237 posts · 169 votes
6y
I wouldn't offer it if there isn't a need to. This can open the door to tenants taking advantage, or worse, taking your kindness as weakness. If your tenants are as great as you mention there shouldn't be any problems. If they do come to you with issues then work with them, but don't fix what isn't broken. What is great is you're already thinking about this stuff and have a plan in place should you need it. Some landlords aren't forward thinking and that is when they run into issues, and with this current situation many are running into problems.
Rental Property Investor · Ellicott City, MD · Member since 2019 · 46 posts · 20 votes
6y
@Anthony Pisciotta
I have two retail tenants and two residential tenants. I gave my retail tenants 50% off for April, but my residential tenants I did not. I'm not against it though. I just know my retail tenants are out of a job for a while. My residential tenants jobs are secure (for now). Looks like I'm in the minority, but I'm not against giving residential tenants 20% off if they are good tenants and you value them. If they are as good as you say, they won't take advantage and they would be very grateful.
Rental Property Investor · Member since 2019 · 48 posts · 38 votes
6y
What I'm not following is why folks are so angry when someone chooses to make a business decision you would not make. It's not a bad decision, it's a different decision. Speaking for my company, we chose to offer a blanket 50% discount across the board for over 30 properties. Our decision to do so has a lot to do with one part keeping tenants happy and one part accepting reality that the crisis means some portion of compassion is the right thing to do.
If we can dial things down just a smidgen, the better off IMHO. Sometimes it's not a matter of what can I do but what should I do. That's a subjective decision to which ultimately no one has the right to point their finger.
Real Estate Broker · Sarasota & Pinellas Counties · Member since 2013 · 11 posts · 3 votes
6y
I think we have to evaluate our situations and property on a case by case basis. My family relies on our rental income so we are monitoring local and national laws. Although we have a plan in place if a tenant cannot pay rent due to a documented Covid-19 reaseon, we are not offering a discount until we get a call that there is a problem.
On the flip side, s friend's Dallas landlord reduced her and the other unit's rent by 50%. I don't know the landlord's personal financial situation except that they own multiple units. I do know both tenants are long term and they have great relationships with both.