Why is Rent still due during COVID-19?

328 Replies

@Andrew Thornton

I couldn’t have said it better. But I guess I’ll try

I agree with OP that it is theft, plain and simple, for a tenant not to pay rent and the landlord often gets the short end of the stick when it comes to getting what they are owed for their goods and services. With that said, if your “store” can only serve one “customer” at a time and it’s often hard to find another customer, not to mention get the current non-paying customer out, especially during this pandemic. Then I think it’s in our best interest to show a little tiny bit of well measured and smart compassion so that the customer that we do have doesn’t hate us and still feels obligated to pay. It is absolutely the tenants responsibility to have savings and be smart and responsible enough to have planned ahead, but if everyone was like that I don’t think we would have any “customers” at all, because they’d be too smart to be paying us any money, haha. But seriously, just determine which of your tenants, if any, are actually in need and work out a reasonable payment plan with them, if you can handle it financially, and make it very clear that it is a charitable act and you still fully intend to get everything you were promised in the legally binding contract that you both signed.

Good will is priceless! I have excellent relationships with all of my tenants now (7 doors) and I expect to maintain those relationships in the future. Let's see how everyone does by April 5th.

the big thing we all have to stick together as landlords,just like the president didnot cause this ,he is trying to find a way to deal with this.that means for us ,working with tenants such finding ways for them to pay our rent.such as putting rent on credit card,paying half now and half when get stimulas check,adding to follow months rent,or any other way you can think.but the big thing telling tenant they are still on the hook for rent.the only threat you have is when this is over they will be first to be evicted.but should know your tenants from previous dealings with them who will be the ones hard to work with.the big thing on my rant we should as landlords look to form a union with all landlords on bigger pockets and your local apt association to have our voice heard to are goverment officials.if we all get together ,maybe in next stimulas bill ,landlords will be in it.this is not going to be over quick.look  to china,factories opening,but laying off people because of no demand for there product.so lets get together ,and use our time wisely,what does bigger pockets have over 100,000 members.lets think together

Originally posted by @Fitzroy Harvey :

@Heather Frusco

I love this. What you said about only one person to blame is spot on because people don't like to take responsibility for their actions. Many people dont understand the power of saving for rainy days until the rain starts falling then it's too late. From the book the Richest man in Babylon "For every ten coins, 💰you earn spend but nine."

If we all learn to do so in times like this we won't have to fret.

Fritz, thank you and agreed. Most don't like to hear that they need to take personal responsibility for their own situation and instead always find it easier for someone else to provide assistance. At what point does it become a LL's responsibility to provide assistance to a tenant (another grown adult) which has failed to prepare and save appropriately? Not saying that LL's can't help out but if they do... it's a courtesy... NOT a requirement or an entitlement. 

The govt. is planning to credit each individual $1,200... some see this as an 'entitlement' which are likely the same people which don't like to hear that they are responsible for their own actions and their position in life. Others see it for what it is... a courteous act by our government. Just for perspective, the US govt. the most powerful govt. in the world is crediting individuals $1,200 - flip that around and the average rent in the US is $1,216... heck some expect LL's to absorb their rent (entitlement)... I don't know about most but most LL's are no where near as as powerful as the US govt. - they're people with families - but yet... are expected to support these grown adults more so?... 

Additionally, most in the 'entitlement mentality' camp fret a the idea of 'payment options' because it simply implies that individuals are still responsible for their situation... what most fail to realize is that those 'options' are a complete courtesy by their LL's, if offered at all, in an effort to help Tenants make ends meet... the alternative would be 'no options'. But it gets worse... those with entitlement mentalities not only fail to see options given to them by the LL's as a courtesy but... they actually get upset if the options given are not 'free' - akin to receiving a gift and asking for more... heck if even the US govt. isn't willing to support these adults much more than $1,200... what makes anyone think that LL's should, or even have the resources to support them 2-3x's more? 

@Heather Frusco i have close family members like this. Their sense of entitlement has distanced us and caused me to grow a thicker skin. I can read BS from a mile away and have very low tolerance for it.

"Thanks, John. Why do these State Senators waste time proposing legislation that's unconstitutional?"

__________

Pure grandstanding and pandering. Plain and simple.

In BC, the government is offering $500 to help tenants towards paying the rent-the money will go directly to the landlord.  There is additional money from provincial and federal government to help with other expenses.

Originally posted by @Anish Tolia :

Yeah, I do feel bad for landlords that are going to struggle just due to market forces alone right now.  But if you're extra smacked because the left leaning area you opted to invest in also kicks you while you're down -- well, don't allow yourself to have that happen. Get out of those armpits. 

In the place you call the "armpit" i.e the Bay Area, I have a townhouse occupied by an engineer paying over 3500$/month whose rent I have no doubt whatsoever will hit my account on the 29th as it always does. In your capitalist heaven red state of Indiana I have multiple rentals that I have no idea will pay or not. And even if I can evict them, who will rent now?  Your so called armpits are the economic engines that drive America while the opiod addicted trash in the red states suck up our taxes. Sound a bit harsh? I know its an exaggeration but no different than your categorization of the most productive and educated states in the country as its "armpit". 

 

Anish,

Don't really believe in knocking someone else's home. California is indeed a beautiful and productive state.

Which is why I can't wrap my head around why "your educated populace" elects some of the most moronic, pathetic, corrupt and downright laughable politicians of anywhere on the planet.

Gary 

 

Originally posted by @Anish Tolia :

@Gary L Wallman compared to what? Fox news addled trumpheads?

 Anish,

No, compared to the vast majority of sane Americans. You know, the kind that don't want to pay $3500 rent for a 1000 square foot flat and have to dodge homeless people, feces and raw sewage to get to their front door.

Gary

Interesting points! I have a differing outlook I'd like to share.

In 2019 I worked for investor and collected $21,000 in back rent for his business. I will share the information that made this possible. 

Tenant Vs. Landlord Mindset Having the approach of “well you should have been saving, have reserves, made better choices, you have to pay your bills” etc.... is too late in the game. We are not suddenly going to change the mindset of a tenant. There is a reason (stemming from life choices) why some individuals are meant to be landlords and others are meant to be tenants.

Fighting Fire with Fire Attempting to justify & lecture why paying rent is the right thing to do and not paying is the wrong decision is just going to frustrate your tenant further. Some tenants may think of you as a greedy politician, and if you start lecturing now, they certainty wont pay. 

Here is your best shot at collecting! Anyone familiar with Chris Voss? Never Split the Difference is his book on negotiation. What will get you the furthest with your tenants and collecting payment is: 

1. Let them be heard, let them give their story, and sympathize with them. Be genuine! You may find yourself saying "Wow, that has got to be frustrating" "Sounds like it's been a tough month, huh?"

2. Get them to say "that's right" if your tenant feels understood, they wont argue your side. They just want to feel understood for the bad position they are in. 

3. They will only listen to you Once they feel heard, now they will listen to your side of the story. 

Conclusion Have communication with your tenant that is falling behind on rent.  Call them and let them you know it's a frustrating time and you want to understand their situation a bit better. Get them to say "that's right". Explain the position you'll be put in if you cant collect any rent. Find middle ground!

Be well, good luck to all! 

Brandon Chidester 

Gallagher Portfolio Insurance 

Hello All,

I’d like to put this in the tenant’s perspective. I rent and that rent check is ready to go for April no matter what. I’m a health care worker but mid-March, we were sent home and may not return for another couple of weeks. Ugh.. I’m keeping a high chin and know that we’re going to come through this without adding to my landlord’s worries. But the rent will be paid

I’m sure some of your tenants have thoroughly considered, “hum that money I do have, I will instead save it for food and hoard more toilet paper”. This is a scarcity mentality. Perhaps this is a time when you can help bring education into the picture. Sometimes we assume people know about savings and emergency funds, etc.; I mean it does sound quite basic, right? Think about that time when you read “Rich Dad Poor Dad” and your mind did a 360 pivot and lo and behold a new perspective. Your tenants could probably use some pivot in their use of money. You may not see it as your job but here you are worrying about money yourself. What can you do to bring a little enlightenment to your tenants?

Communication with your tenant and encouraging your tenant to stay in touch is of utmost importance. Here’s a little story about my negotiation as a tenant: There was a time when I lived in Jersey, and went through surgery, chemo and radiation. I wrote a proposal to my landlord stating the situation and gave my BOLD proposal which was: asking to her to reduce my rent by $200 (from $1300 to $1100) for six months, then in 6 months I will pay her $1500/month until caught up. This angel landlord approved it; I was elated and I fully complied with that agreement and paid her despite working part time and four children to feed. Previous to this scenario, I had made other proposals that were all win-win. Let’s not go into agreement with scarcity. How can you and your tenants get in touch to create a win-win scenario despite Covid19?

@Heather Frusco

According to the New York Times...

Is there any relief for renters in the bill?

Yes. The bill puts a temporary, nationwide eviction moratorium in place for any renters whose landlords have mortgages backed or owned by Fannie Mae, Freddie Mac and other federal entities. This will last for 120 days after the bill passes, and landlords also can’t charge any fees or penalties for nonpayment of rent.

Originally posted by @Samuel Pentowski :

@Andrey Y. Education in the US is terrible and inconsistent.  This is what leads us to have around 16% of our population believing that Earth is flat.  

No disagreement on the first part. I looked up the second part. It's 2% of the total population that firmly believes the earth is flat and it drops as people get older. 84% always believed round. 14% had changing beliefs, unsure, or no opinion. 

I have to believe that a large percentage of those 2% people (especially younger ones) are screwing with the census taker. Ask a stupid question, get a stupid answer. Of course the earth is flat. If it were round we'd all fall off it. Try standing on a basketball, you can't. You fall off it. Try standing on a pancake and you can. Clearly the earth is flat like a pancake. Stupid question = stupid answer.

Originally posted by @Sarah Lewis :

Good will is priceless! I have excellent relationships with all of my tenants now (7 doors) and I expect to maintain those relationships in the future. Let's see how everyone does by April 5th.

Hey honey, what's for dinner tonight? 

@Sarah Lewis: Good Will!

What type of Veal?

@Sarah Lewis: Not veal, GOOD WILL!

Originally posted by @Scott F. :

@Heather Frusco

According to the New York Times...

Is there any relief for renters in the bill?

Yes. The bill puts a temporary, nationwide eviction moratorium in place for any renters whose landlords have mortgages backed or owned by Fannie Mae, Freddie Mac and other federal entities. This will last for 120 days after the bill passes, and landlords also can’t charge any fees or penalties for nonpayment of rent.

 What if you own a property that is fully paid off?  

Originally posted by @Brandon Chidester :

Interesting points! I have a differing outlook I'd like to share.

In 2019 I worked for investor and collected $21,000 in back rent for his business. I will share the information that made this possible. 

Tenant Vs. Landlord Mindset Having the approach of “well you should have been saving, have reserves, made better choices, you have to pay your bills” etc.... is too late in the game. We are not suddenly going to change the mindset of a tenant. There is a reason (stemming from life choices) why some individuals are meant to be landlords and others are meant to be tenants.

Fighting Fire with Fire Attempting to justify & lecture why paying rent is the right thing to do and not paying is the wrong decision is just going to frustrate your tenant further. Some tenants may think of you as a greedy politician, and if you start lecturing now, they certainty wont pay. 

Here is your best shot at collecting! Anyone familiar with Chris Voss? Never Split the Difference is his book on negotiation. What will get you the furthest with your tenants and collecting payment is: 

1. Let them be heard, let them give their story, and sympathize with them. Be genuine! You may find yourself saying "Wow, that has got to be frustrating" "Sounds like it's been a tough month, huh?"

2. Get them to say "that's right" if your tenant feels understood, they wont argue your side. They just want to feel understood for the bad position they are in. 

3. They will only listen to you Once they feel heard, now they will listen to your side of the story. 

Conclusion Have communication with your tenant that is falling behind on rent.  Call them and let them you know it's a frustrating time and you want to understand their situation a bit better. Get them to say "that's right". Explain the position you'll be put in if you cant collect any rent. Find middle ground!

Be well, good luck to all! 

Brandon Chidester 

Gallagher Portfolio Insurance 

 Great info!  And "Never Split The Difference" is required reading for me!

Originally posted by @Scott F. :

@Heather Frusco

According to the New York Times...

Is there any relief for renters in the bill?

Yes. The bill puts a temporary, nationwide eviction moratorium in place for any renters whose landlords have mortgages backed or owned by Fannie Mae, Freddie Mac and other federal entities. This will last for 120 days after the bill passes, and landlords also can’t charge any fees or penalties for nonpayment of rent.

Scott agreed the relief available to renter's in the form of moratorium on evictions in the bill... is going to wind up hurting renter's much more that it's going to help them. Don't get me wrong in the immediacy of this issue it'll help some but, it's certainly going to hurt A LOT of renters once this is over. - Every time the government gets involved in the free market usually it's the very same people they are trying to help which wind up loosing  and hurting but only realize it once it's too late - look at rent control... how has that worked out - not too good.

Originally posted by @Steven Lowe :
Originally posted by @Scott F.:

@Heather Frusco

According to the New York Times...

Is there any relief for renters in the bill?

Yes. The bill puts a temporary, nationwide eviction moratorium in place for any renters whose landlords have mortgages backed or owned by Fannie Mae, Freddie Mac and other federal entities. This will last for 120 days after the bill passes, and landlords also can’t charge any fees or penalties for nonpayment of rent.

 What if you own a property that is fully paid off?  

Then you have to be punished for being so well capitalized, sir.  This bailout is for those that "lived in the moment" these last several years.  

 

Originally posted by @Heather Frusco :

I have had the opportunity to find and work with some of the best property managers (after many years) for our current properties. Over the years we have gone from me just treating them like just a service I hired to us working together toward a common goal and reaching a place of trust. So a few of our managers have reached out to us regarding their interactions with our tenants regarding the COVID-19 situation. So here goes: 

Rent is still due. Why? 

1 - Tenants should also have saved 'reserves' in place - so if they are already missing their rent payment come April just a few weeks into this, they are selectively deciding not to pay for their shelter in hopes of rent forgiveness - which is no different than shoplifting or any other use of a service with the knowing intention not to pay - no one to blame but one person.

2 - There are options available to Tenants: They can always put it on a credit card, which really already has a payment plan set up for them with their terms... a tenant can quite literally just pay the minimum until they get back on their fee, not suggesting anyone just may the minimum on a CC but that is an option, just like it is an option to put food, utilities and anything else on a credit card, shelter is no different. 

3 - There are loans available to Tenant: Applying for temporary loans to make ends meet are available and even more so now - and before anyone says you won't qualify - there's only one person to blame for that and yes... a CC is a type of loan when used - so if you have a CC... you can access to borrowed funds with a re-payment system. 

4 - Why does a tenant have to live in the current rental? - As if there aren't options...So if a single lady is renting a 4 bedroom waterfront rental for $3,000/mo. and then says she cant afford rent but continues to remain in place i.e. selectively choosing not to move out and just stay - wouldn't her moving out to 4 bedroom non-waterfront for $1,600/mo. make more sense? or better yet... downsize,  that is... if the tenant did really want to make it right. - so again selectively choosing to pass on the debt to someone else without taking 'sacrifice' for you situation under your own wing... is a choice. 

5 - One of our managers was trying to work out a deal with a tenant for deferred rent and contacted the employer to verify the situation before approving the deferred rent plan... The employer:

 'Yes unfortunately we had to lay him off due to this pandemic, but it just important you take that into consideration because everyone needs shelter, you should certainly let him stay'

---- Couldn't agree more everyone does need shelter just like everyone does need food and water, the baffling question is... if the this employer is worried about the employees than why not just continue to pay them a salary during this entire thing?.... oh yeah... because they want to pass the buck... essentially saying 'No, I cant afford to continue paying them because we have no customers but you should offer to continue paying for the mortgage on their rental even though your customer (tenant) is not paying you' - hypocrisy at its best. 

Albeit most that request assistance as it stands RIGHT NOW... only a few weeks into this situation... are unwilling to take on the responsibility for themselves onto their shoulders and find it just easier to put it onto someone else... which is why we have instructed our PM's to 1) verify the tenant's unemployment with connection to COVID-19, 2) allow them to take advantage of the options above, deffer rent for only those that truly absolutely need it, and file for eviction for all the rest to be in place when courts start the process... because as mentioned above options remain in helping tenants make ends meet but not paying for a product you are currently consuming is never going to be an option, if it is... next time you go to the grocery store for food... a first level necessity... try to walkout with a cart full of it without paying and see if they'll absorb the cost - the audacity of the manager even trying to stop you! 

MIKE TYSON – “EVERYONE HAS A PLAN UNTIL THEY GET PUNCHED IN THE MOUTH”.

Its easy to "spreadsheet" this out from your limited perspective. Not everyone is as smart and well off as you. Give them some slack. Wait till we are in the throws of this full swing, will be worse than 2008 x 10 unless we really get a handle on things and it does not look like that.

When Mike Tyson was asked by a reporter whether he was worried about Evander Holyfield and his fight plan he answered; “Everyone has a plan until they get punched in the mouth.”

What Tyson said is similar to the old saying “no plan survives first contact with the enemy”. But does this mean that there is no need to plan? Absolutely not.

Holyfield was no doubt smarter and more strategic than Tyson (hard not to be), but was Tyson right? Tyson was a brawler, awesome at powerfully fighting his way out of a corner and landing devastating blows. Could Holyfield have planned to have half of his ear bitten off? How did he respond to Tyson’s unpredictable nature.

Holyfield won. Despite the massive 15/2 odds against him. He won. However had he blindly followed his plan when things had changed he may not have. The question is how you adapt your plan when you get punched in the mouth. There are two key things here

  1. Most of the plan should survive despite everyone being focused on the bit that is broken. So, keep the old plan in mind when working out the new plan. You may have a puffed up eye and half an ear but your arms and legs are still working so don’t stop moving, defending and throwing punches.
  2. The new plan needs to deal with right now reality. There’s no point thinking about training and strategy while you’re being punched in the face. Your ear hurts and your eyes are swelling so you need to think and make a decisive decision. In this case the fighter can either to go for a knockout now or stay away for a while, his choice will have knock on effects for the rest of the fight but the fighter needs to make a decision or get punched in the face again.

To bring this back to the workplace. If you’ve created a detailed work plan for your team that fully utilizes your people and equipment and key people call in sick or a machine breaks down. What do you do?

  1. Most of the plan should survive, priority jobs should still happen and most of the team should be able to carry on doing what they were planned to be doing. So, adapt the current plan to cope with the change, don’t throw it all out and start again.
  2. The new plan needs to deal with right now reality. In most cases planners won’t be around to help so your supervisor needs to be able to solve the problem himself, this means they must both understand the plan (the why behind the what) and believe that they have the authority to change it. Someone didn’t come in, I can borrow someone or do a different job from tomorrow’s plan. Machine is broken, can I do contingency work, fix it or borrow another machine. The last thing you want is for people to stand around doing nothing.

Both Tyson and Holyfield were right, plans shouldn’t survive the first punch in the mouth but you need one in the first place to be able to adapt it for changes in reality…

“Victorious warriors win first and then go to war, while defeated warriors go to war first then seek to win” Sun Tzu, the Art of War.

So, be like Holyfield, put a plan together in sufficient detail to “win first” but ensure you can adapt this plan so that one “punch in the mouth” does not result in defeat. Holyfield won with a TKO in the 11th round after Tyson tried to bite his other ear.

Some things you just can’t plan for!

Originally posted by @Rob Massopust :
Originally posted by @Heather Frusco:

I have had the opportunity to find and work with some of the best property managers (after many years) for our current properties. Over the years we have gone from me just treating them like just a service I hired to us working together toward a common goal and reaching a place of trust. So a few of our managers have reached out to us regarding their interactions with our tenants regarding the COVID-19 situation. So here goes: 

Rent is still due. Why? 

1 - Tenants should also have saved 'reserves' in place - so if they are already missing their rent payment come April just a few weeks into this, they are selectively deciding not to pay for their shelter in hopes of rent forgiveness - which is no different than shoplifting or any other use of a service with the knowing intention not to pay - no one to blame but one person.

2 - There are options available to Tenants: They can always put it on a credit card, which really already has a payment plan set up for them with their terms... a tenant can quite literally just pay the minimum until they get back on their fee, not suggesting anyone just may the minimum on a CC but that is an option, just like it is an option to put food, utilities and anything else on a credit card, shelter is no different. 

3 - There are loans available to Tenant: Applying for temporary loans to make ends meet are available and even more so now - and before anyone says you won't qualify - there's only one person to blame for that and yes... a CC is a type of loan when used - so if you have a CC... you can access to borrowed funds with a re-payment system. 

4 - Why does a tenant have to live in the current rental? - As if there aren't options...So if a single lady is renting a 4 bedroom waterfront rental for $3,000/mo. and then says she cant afford rent but continues to remain in place i.e. selectively choosing not to move out and just stay - wouldn't her moving out to 4 bedroom non-waterfront for $1,600/mo. make more sense? or better yet... downsize,  that is... if the tenant did really want to make it right. - so again selectively choosing to pass on the debt to someone else without taking 'sacrifice' for you situation under your own wing... is a choice. 

5 - One of our managers was trying to work out a deal with a tenant for deferred rent and contacted the employer to verify the situation before approving the deferred rent plan... The employer:

 'Yes unfortunately we had to lay him off due to this pandemic, but it just important you take that into consideration because everyone needs shelter, you should certainly let him stay'

---- Couldn't agree more everyone does need shelter just like everyone does need food and water, the baffling question is... if the this employer is worried about the employees than why not just continue to pay them a salary during this entire thing?.... oh yeah... because they want to pass the buck... essentially saying 'No, I cant afford to continue paying them because we have no customers but you should offer to continue paying for the mortgage on their rental even though your customer (tenant) is not paying you' - hypocrisy at its best. 

Albeit most that request assistance as it stands RIGHT NOW... only a few weeks into this situation... are unwilling to take on the responsibility for themselves onto their shoulders and find it just easier to put it onto someone else... which is why we have instructed our PM's to 1) verify the tenant's unemployment with connection to COVID-19, 2) allow them to take advantage of the options above, deffer rent for only those that truly absolutely need it, and file for eviction for all the rest to be in place when courts start the process... because as mentioned above options remain in helping tenants make ends meet but not paying for a product you are currently consuming is never going to be an option, if it is... next time you go to the grocery store for food... a first level necessity... try to walkout with a cart full of it without paying and see if they'll absorb the cost - the audacity of the manager even trying to stop you! 

MIKE TYSON – “EVERYONE HAS A PLAN UNTIL THEY GET PUNCHED IN THE MOUTH”.

Its easy to "spreadsheet" this out from your limited perspective. Not everyone is as smart and well off as you. Give them some slack. Wait till we are in the throws of this full swing, will be worse than 2008 x 10 unless we really get a handle on things and it does not look like that.

When Mike Tyson was asked by a reporter whether he was worried about Evander Holyfield and his fight plan he answered; “Everyone has a plan until they get punched in the mouth.”

What Tyson said is similar to the old saying “no plan survives first contact with the enemy”. But does this mean that there is no need to plan? Absolutely not.

Holyfield was no doubt smarter and more strategic than Tyson (hard not to be), but was Tyson right? Tyson was a brawler, awesome at powerfully fighting his way out of a corner and landing devastating blows. Could Holyfield have planned to have half of his ear bitten off? How did he respond to Tyson’s unpredictable nature.

Holyfield won. Despite the massive 15/2 odds against him. He won. However had he blindly followed his plan when things had changed he may not have. The question is how you adapt your plan when you get punched in the mouth. There are two key things here

  1. Most of the plan should survive despite everyone being focused on the bit that is broken. So, keep the old plan in mind when working out the new plan. You may have a puffed up eye and half an ear but your arms and legs are still working so don’t stop moving, defending and throwing punches.
  2. The new plan needs to deal with right now reality. There’s no point thinking about training and strategy while you’re being punched in the face. Your ear hurts and your eyes are swelling so you need to think and make a decisive decision. In this case the fighter can either to go for a knockout now or stay away for a while, his choice will have knock on effects for the rest of the fight but the fighter needs to make a decision or get punched in the face again.

To bring this back to the workplace. If you’ve created a detailed work plan for your team that fully utilizes your people and equipment and key people call in sick or a machine breaks down. What do you do?

  1. Most of the plan should survive, priority jobs should still happen and most of the team should be able to carry on doing what they were planned to be doing. So, adapt the current plan to cope with the change, don’t throw it all out and start again.
  2. The new plan needs to deal with right now reality. In most cases planners won’t be around to help so your supervisor needs to be able to solve the problem himself, this means they must both understand the plan (the why behind the what) and believe that they have the authority to change it. Someone didn’t come in, I can borrow someone or do a different job from tomorrow’s plan. Machine is broken, can I do contingency work, fix it or borrow another machine. The last thing you want is for people to stand around doing nothing.

Both Tyson and Holyfield were right, plans shouldn’t survive the first punch in the mouth but you need one in the first place to be able to adapt it for changes in reality…

“Victorious warriors win first and then go to war, while defeated warriors go to war first then seek to win” Sun Tzu, the Art of War.

So, be like Holyfield, put a plan together in sufficient detail to “win first” but ensure you can adapt this plan so that one “punch in the mouth” does not result in defeat. Holyfield won with a TKO in the 11th round after Tyson tried to bite his other ear.

Some things you just can’t plan for!

 Rob, I've noticed you reference Mike Tyson in other post threads on BP... I'm sorry but... which part don't you agree with and what is the argument?

Originally posted by @Wesley W. :
Originally posted by @Steven Lowe:
Originally posted by @Scott F.:

@Heather Frusco

According to the New York Times...

Is there any relief for renters in the bill?

Yes. The bill puts a temporary, nationwide eviction moratorium in place for any renters whose landlords have mortgages backed or owned by Fannie Mae, Freddie Mac and other federal entities. This will last for 120 days after the bill passes, and landlords also can’t charge any fees or penalties for nonpayment of rent.

 What if you own a property that is fully paid off?  

Then you have to be punished for being so well capitalized, sir.  This bailout is for those that "lived in the moment" these last several years.  

Debt...it's what's for dinner!  

 

Originally posted by @Heather Frusco :
Originally posted by @Rob Massopust:
Originally posted by @Heather Frusco:

I have had the opportunity to find and work with some of the best property managers (after many years) for our current properties. Over the years we have gone from me just treating them like just a service I hired to us working together toward a common goal and reaching a place of trust. So a few of our managers have reached out to us regarding their interactions with our tenants regarding the COVID-19 situation. So here goes: 

Rent is still due. Why? 

1 - Tenants should also have saved 'reserves' in place - so if they are already missing their rent payment come April just a few weeks into this, they are selectively deciding not to pay for their shelter in hopes of rent forgiveness - which is no different than shoplifting or any other use of a service with the knowing intention not to pay - no one to blame but one person.

2 - There are options available to Tenants: They can always put it on a credit card, which really already has a payment plan set up for them with their terms... a tenant can quite literally just pay the minimum until they get back on their fee, not suggesting anyone just may the minimum on a CC but that is an option, just like it is an option to put food, utilities and anything else on a credit card, shelter is no different. 

3 - There are loans available to Tenant: Applying for temporary loans to make ends meet are available and even more so now - and before anyone says you won't qualify - there's only one person to blame for that and yes... a CC is a type of loan when used - so if you have a CC... you can access to borrowed funds with a re-payment system. 

4 - Why does a tenant have to live in the current rental? - As if there aren't options...So if a single lady is renting a 4 bedroom waterfront rental for $3,000/mo. and then says she cant afford rent but continues to remain in place i.e. selectively choosing not to move out and just stay - wouldn't her moving out to 4 bedroom non-waterfront for $1,600/mo. make more sense? or better yet... downsize,  that is... if the tenant did really want to make it right. - so again selectively choosing to pass on the debt to someone else without taking 'sacrifice' for you situation under your own wing... is a choice. 

5 - One of our managers was trying to work out a deal with a tenant for deferred rent and contacted the employer to verify the situation before approving the deferred rent plan... The employer:

 'Yes unfortunately we had to lay him off due to this pandemic, but it just important you take that into consideration because everyone needs shelter, you should certainly let him stay'

---- Couldn't agree more everyone does need shelter just like everyone does need food and water, the baffling question is... if the this employer is worried about the employees than why not just continue to pay them a salary during this entire thing?.... oh yeah... because they want to pass the buck... essentially saying 'No, I cant afford to continue paying them because we have no customers but you should offer to continue paying for the mortgage on their rental even though your customer (tenant) is not paying you' - hypocrisy at its best. 

Albeit most that request assistance as it stands RIGHT NOW... only a few weeks into this situation... are unwilling to take on the responsibility for themselves onto their shoulders and find it just easier to put it onto someone else... which is why we have instructed our PM's to 1) verify the tenant's unemployment with connection to COVID-19, 2) allow them to take advantage of the options above, deffer rent for only those that truly absolutely need it, and file for eviction for all the rest to be in place when courts start the process... because as mentioned above options remain in helping tenants make ends meet but not paying for a product you are currently consuming is never going to be an option, if it is... next time you go to the grocery store for food... a first level necessity... try to walkout with a cart full of it without paying and see if they'll absorb the cost - the audacity of the manager even trying to stop you! 

MIKE TYSON – “EVERYONE HAS A PLAN UNTIL THEY GET PUNCHED IN THE MOUTH”.

Its easy to "spreadsheet" this out from your limited perspective. Not everyone is as smart and well off as you. Give them some slack. Wait till we are in the throws of this full swing, will be worse than 2008 x 10 unless we really get a handle on things and it does not look like that.

When Mike Tyson was asked by a reporter whether he was worried about Evander Holyfield and his fight plan he answered; “Everyone has a plan until they get punched in the mouth.”

What Tyson said is similar to the old saying “no plan survives first contact with the enemy”. But does this mean that there is no need to plan? Absolutely not.

Holyfield was no doubt smarter and more strategic than Tyson (hard not to be), but was Tyson right? Tyson was a brawler, awesome at powerfully fighting his way out of a corner and landing devastating blows. Could Holyfield have planned to have half of his ear bitten off? How did he respond to Tyson’s unpredictable nature.

Holyfield won. Despite the massive 15/2 odds against him. He won. However had he blindly followed his plan when things had changed he may not have. The question is how you adapt your plan when you get punched in the mouth. There are two key things here

  1. Most of the plan should survive despite everyone being focused on the bit that is broken. So, keep the old plan in mind when working out the new plan. You may have a puffed up eye and half an ear but your arms and legs are still working so don’t stop moving, defending and throwing punches.
  2. The new plan needs to deal with right now reality. There’s no point thinking about training and strategy while you’re being punched in the face. Your ear hurts and your eyes are swelling so you need to think and make a decisive decision. In this case the fighter can either to go for a knockout now or stay away for a while, his choice will have knock on effects for the rest of the fight but the fighter needs to make a decision or get punched in the face again.

To bring this back to the workplace. If you’ve created a detailed work plan for your team that fully utilizes your people and equipment and key people call in sick or a machine breaks down. What do you do?

  1. Most of the plan should survive, priority jobs should still happen and most of the team should be able to carry on doing what they were planned to be doing. So, adapt the current plan to cope with the change, don’t throw it all out and start again.
  2. The new plan needs to deal with right now reality. In most cases planners won’t be around to help so your supervisor needs to be able to solve the problem himself, this means they must both understand the plan (the why behind the what) and believe that they have the authority to change it. Someone didn’t come in, I can borrow someone or do a different job from tomorrow’s plan. Machine is broken, can I do contingency work, fix it or borrow another machine. The last thing you want is for people to stand around doing nothing.

Both Tyson and Holyfield were right, plans shouldn’t survive the first punch in the mouth but you need one in the first place to be able to adapt it for changes in reality…

“Victorious warriors win first and then go to war, while defeated warriors go to war first then seek to win” Sun Tzu, the Art of War.

So, be like Holyfield, put a plan together in sufficient detail to “win first” but ensure you can adapt this plan so that one “punch in the mouth” does not result in defeat. Holyfield won with a TKO in the 11th round after Tyson tried to bite his other ear.

Some things you just can’t plan for!

 Rob, I've noticed you reference Mike Tyson in other post threads on BP... I'm sorry but... which part don't you agree with and what is the argument?

yeah I thought it applied to a couple of other posts, no relation.

I just find it laughable at how so many landlords that have never lived through a crisis thinks they can control and dictate from afar. It just comes off as aloof and insensitive. People are going to be devastated from all this and the last thing they care about is how it does not fit into your perfect little plan. Look at how many foreclosures ripped through in 2010 and these were homeowners. Tenants care even less.