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!

honestly. lets not be the asshole landlords everyone thinks we are. Howabout the idea that everyone should share in the pain equally?? why is it just the hourly wage earner that needs to float everything?? While we are on shutdown, many people are still working and many more are getting temp jobs..... My feeling is - if a tenant is having a hardship I will share that hardship with them... and it will depend on the circumstances what that means. Be a good human.... share this pain so we ALL can come out ok and so that the public sentiment of LLs does not erode further.

The median renter household has virtually no cash savings. According to Harvard’s Joint Center for Housing Studies: -- Renters have median cash savings of $630 and the median renter net worth, including all assets, is just $5,100. -- Homeowners have cash savings 10 times as large as that of renters—$6,400—and median net worth is about 35 times as much—$173,010. Meaning most renter households have neither a personal safety net nor a way to build assets for the future. Saying that they SHOULD have saved money flies in the face of the customers earnings and lifestyle habits. Those with more earnings and better lifestyle habits tend to not be our customers (they own their own home). Renters don't earn enough to save for a home or make home payments (many never will, especially if not married), and many tend to "Live in the Moment". If they didn't have these particulars, they wouldn't need us to provide housing for them (a Leopard isn't going to change his spots, so to speak). Just my 2 cents.

You're funny! The gas station charges full price during this human crisis and they aren't greedy. The supermarket charges full price during this human crisis and they aren't greedy. The dry cleaner charges full price during this human crisis and they aren't greedy. My pool guy charges full price during this human crisis and he isn't greedy. The landlord charges full price during this human crisis and fucking motherfucker, greedy son of a bitch deserves to die. Sorry, but I'm not getting a discount anywhere on my purchases. Not sure why I should be giving them out. Enjoy your 5 Star Yelp reviews. Maybe your family can eat them when hungry. And yes, I will be happy to take payment from the government for anything and everything. Because unlike around half of the people in this country, I pay taxes. I send the government well into six figures every year. So yeah, if they're handing out free cash I'll take some of my money back.

Yeah, more greedy landlord comments. Lets be sure to look like total asses to the world during this human crises. I will help where I can, knowing I get "rewarded" by being a good person. this also, btw is good for business. I get top ratings as a LL and get lots of referrals and rarely do I have an opening. People think this type of business philosophy os weak - its not - I promise :) Eta: the govt is going to be the lender/payer of last resort - my guess is that all those that make snarky "comrade" comments will have no problem eating at the emergency fund trough - or, maybe you will be sending your cash the govt is sending back? When you do that, then lets talk :)

Thank you for the thought provoking post. The problem I see going on right now other than the pandemic itself is the massive sense of entitlement in this country. I worked my butt off to get scholarships to help with college and worked again to pay them off. Yet, people are crying everywhere about their student loans and how they were duped into getting them and demanding relief. I worked my butt off for years to build a rental portfolio. I did not take my family on vacation, we lived in a very uncomfortable home with our kids, and I can personally remodel a home from top to bottom (except for electrical, plumbing and foundations) because I spent 60+ hours a week getting stuff done. Now what I hear and see is a lot of people complaining and demanding free rent, which is food off of my children's table. The worst part is that they are demanding it when they've been laid off for two seconds and there are a lot of resources to help them. No people should not share in the suffering equally. I hated group projects in high school where I did all of the work and the jerks in my group shared the grade I earned. How is this any different? We have a moral obligation to care for those in need and I treat my tenants very well, but can I carry their burdens, no. If we just forgive student debts and rent payments while also preventing evictions, we are just enabling so many people to stop contributing to society. Where does the cycle stop?

Mary, you can certainly share in the hardship... I'm just curious and I wonder will a tenant reciprocate and share in one of your hardships i.e. mortgage late fees ?

Credit card as method to pay rent auto qualifies as person recommending being Cold Hearted.

Wow, huge thread and very polarizing. I know I shouldn't post but what the hell. First this is a good discussion for the most part. For the poor souls who have no intellect and turned it into calling as mean of names as you could I simply deleted your post. Use arguments not name calling. We are not 8 year olds. By all means disagree, argue, debate, but name calling is a sign you have exhausted your intellect.Second, @Dan Heuschele, I agree with some of your posts, but have no idea why you posted them. Could you elaborate on your point? If a LL did not keep enough reserves does he deserve to have folks not pay rent and to not evict people because he had it coming? The LL made a mistake and will likely pay for it by losing everything. The tenant will be evicted and move on, actually he will stay if that state passed a no eviction law. @John Clark, are you saying The Cheesecake factory not paying rent makes it ok for no one else to pay rent? I think the mall owners should be able to evict them if they choose, or not to. Suggesting someone is immoral for insisting upon them performing a contract they agreed to do is pretty judgemental. Are you willing to take the hit yourself? Will you pay the rent for every tenant that does not pay @Heather Frusco? If you think it is an obligation and it is a moral thing, then by all means pay their bill yourself. Account Closed, you are pretty quick to throw rocks. What is your answer? If you really want to be taken seriously suggest an answer to the problem not just sit in moral judgement. @Mary Mitchell to be honest it is a lot easier to tell someone they should eat half of a tenant's shortfall when your own rentals are fully paid for. Back when all of them had mortgages that might have been harder to do or even impossible. There is always risk in building a business. Most fail, those who make it deserve to reap the rewards of the risk. Now that I have jabbed most of you I will give my 2 cents so you can in return jab me back. If you poke someone in the nose it is only fair they get to poke back. First I have some short term rentals. They lost money the first year, made a little month next year and smoked it last year. It looked they would triple the income of a regular rental this year. I just lost every single booking for almost 3 months. Back to not covering utilities. Was I wrong to take 3 years and forecast the income for this year? That hurt. My cleaning lady has lost a lot of income too. I had 2 empty units in January that I was fixing up from a tenant who trashed one, and the other simply needed updating. I had 6 units open up in February. Most were long time renters. Divorce, heart attacks, job changes, etc. I lost $4K in rent in one month and gained an additional $2K in utility bills, ouch. I have never in 25 years had that many folks move out in one month, not even in May. My calculations provide for me to cash flow easily with 1 in 12 units empty (8 1/2%), I never dreamed it would be (20%). Last year was a bit painful as we had a very bad hailstorm that took out 20 of my roofs. Does anyone really think insurance companies pay for the full loss? Not even close. Luckily I have 4 of the units rented back, just in time for Coronavirus to set in. Guess what? I don't have any property above a C+. My cleaning lady, a waitress and a bartender are among my tenants. To make matters worse I am not a very good LL sometimes and have 2 tenants on payment plans already. Here is my plan. The cleaning lady will be cleaning 2 units I purchased in hopes of making them into VRs hehe, that won't happen this year. The waitress and the bartender will be offered the option to go to work for me painting their houses, cleaning up yards, and other assorted jobs up to $200 over their rent amount at $15 per hour. I might try them out on doing a low roof, as I really need to put 16 more roofs on. I don't fault anyone who feels that they need to evict tenants who don't pay rent. But by the grace of God there go I. I am blessed to not be missing my mortgage payments because of shortfalls. Twenty years ago the margins were a lot slimmer. It could still happen. I will be in a bind if I lose another 5 or 6 tenants. I can make my mortgage payments for 6 months, but not taxes or insurance if I lose 20 tenants next month. things are going to get hard folks. I have seen at least 3 really bad recessions and I interviewed my grandparents who lived through the great depression for a history project. We really don't know what tough is. Millenials, gen x and Y have no idea of hardship, but that is not their fault that they lived in such prosperous times. My moral code says to help who I can, but to be honest I think it is in my best interests to do so from a financial viewpoint. In some markets you can rerent places in a week. I have had places empty since January that have not rented. I have had lookers, but I have learned no tenants are better than bad tenants. I spent a lot of time and money getting good tenants in. If I can work out a deal I will try to keep them. I have done it before, sometimes it worked out, sometimes not. In six months I may be kicking folks out and evicting them, so no rocks from me. I believe we are going to be hit hard by this recession. I think a lot of LLs are going to be put out of business, and I think a lot of folks will be evicted and move into their parents basement or share some fleahole with other folks to save money. I am still amazed however that our politicians managed to remember why they were in Washington DC long enough to jointly pass the biggest aid bill probably ever, but definitely in our lifetime. The WPA may have been larger adjusted for inflation. The stimulus may actually work, but I doubt it. This is still a great country however, and maybe when times are tough we will pull together and not have ANTIFA and few white supremacists running around thinking beating people up is the way express your outrage over the latest political whim. Maybe we will share our toilet paper supplies with the elderly person next door who is afraid to go to the grocery store because of the virus. Maybe we will pool resources with our friends and even strangers to help those in need out. We have a great nation, we are the most giving nation in the world. When tidal waves hit, when earthquakes and floods hit, it is Americans who are first to open our purse and our hearts to help. Remember we are all in this together. We all rely on others to feed us, give us income from jobs or sales or rent, and even our clothes are made by others, they are shipped by train or rail, the farmers feed us but use tractors and fuel made by others. We will get out of this sooner if we all work together and give a little. If we don't, we all lose. God bless. Now it's your turn to whack me. :)

I'm not going to boycott Cheesecake Factory for their inability to pay April rent, but I sure as hell aren't going to give them charity either. They aren't thieves, but they are financially irresponsible. Did you know that they were paying a $1.44 annual dividend? That means they paid out around $65 million to shareholders last year. The CEO that makes $2.07 million a year decided to pay out that money rather than save it for a rainy day or even use it to help pay down their $1.61 billion debt. Some people in this thread think we should share their pain. We should have compassion for them. I view them no differently than a tenant that bought a new car and went on vacation and has no savings to cover their rent. Sorry to hear that, but I still expect to get paid. I will not pay for your bad decisions.

Why is Rent still due during COVID-19?

John Clark

Member since 2018 · 1k+ posts · 1k+ votes

6y

"if you don't agree, then what would you call it? If you're continuing to occupy a unit with the knowing intention to never pay for your occupancy what would you call that? I hope that's straight forward enough John and can't wait to hear the reply. "

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Oh, but I do agree as to those who have a knowing intention "to NEVER pay." I just want to see if you extend the same label to established corporations pulling the same stunt. Now stop evading, and for the love of God, stop whining: Is Cheesecake Factory a den of thieves or not?

0 Reply

Dan H.Pro Member

Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes

6y

Originally posted by @Heather Frusco:

Originally posted by @Dan H.:

Originally posted by @Greg M.:

Originally posted by @Mary M.:

Howabout the idea that everyone should share in the pain equally??

Well Comrade Mary, sharing the pain equally would reward those who failed to prepare/sacrifice and punish those that did prepare/sacrifice.

I sacrificed to buy a unit. I pay to keep it in habitable condition. I sacrificed to build up reserves so that a rent interruption or major capital expense will not affect my ability to maintain ownership of the unit (and therefore allow you to continue to live there) or its habitability. The fact that you as a renter did not sacrifice and save and now are in pain is not a reason to try and have me share your pain.

Renting is a business transaction. We rent a place for market price. Pretty simple. Now if a landlord is going to share in the pain during bad times, shouldn't they also share in the reward when times are good? Right, Comrade, we want equality! So if I as a landlord should take 50% of the market rent for the next 3 months because times are bad for you, shouldn't I be entitled to more when times are good for you?

I'm sure you are aware of the Fight For $15 movement. A lot of people here went from $12/hr to $15/hr. Should I as a landlord get a 25% bump in rent because the tenant got a 25% raise? Seems fair to share in the good times...

>A lot of people here went from $12/hr to $15/hr. Should I as a landlord get a 25% bump in rent because the tenant got a 25% raise? Seems fair to share in the good times...

If you are charging market rent, you already are sharing in the good times plus quite a bit (you had a greater share of the good times than those who are earning minimum wage). The average rent has increased much faster than minimum wage and average wage for virtually any long term time span in Los Angeles. The amount of household income going towards rent is near the all time high and this includes going back to when most households were single earner families. This implies not only has rent gone up faster than wages, but it has gone up enough faster than wages that it has been able to overcome the increase in average number of wage earners per family.

In my market (San Diego), average rent has increased almost $500 over the previous 3 years. Your comment seems to imply that low end workers should somehow be able to continue to pay for rent post increase on the same minimum salary that was in place when rent was $500/month less.

Dan, no need to backpedal out of it now... you personally... should the landlord then raise rent on you personally, when you get a bonus or get a pay raise at your job? -- Greg, makes a great point for all those looking for LL's to 'share' in the bad times, if that's the case should a Tenant then also 'share' with the LL in the good times. Looking forward to the answer.

In coastal So Cal the LL have had years of good times. The rents have increased faster than inflation, minimum wage, and average salary. Did they share with the tenants? Admittedly many have by charging below market rent because, even charging below market rent, the returns have been great. But not all LL passed the good times to the tenants and I really do not expect the LL to have charged below market rent to the tenants to share the good times. I think charging below market rent beyond what is financially advantageous (such as to keep good tenants) is poor business.

Similarly, being a LL is a business. Businesses should 1) build reserves 2) should know risks. In the case of a LL, the extent of likely tenant reserves. The LL is typically compensated for this higher risk. It is one reason that rent to value ratios are higher in lower class/poorer areas than in more affluent/higher class areas.

We have LTR rentals from C to B+ class areas (We have 2 STRs in a class A area) with a majority being in the C class. I expect the C class tenants will have less reserves and therefore more difficulty making rent than the B class tenants (but ironically only 2 tenants have talked to us about potential issues and one was from a B class unit)when they loose their jobs. The point is the rent reflects the risk. C class have higher rent to RE value in part because most of the tenants do not have the reserves to handle layoffs for an extended period of time and the LL is compensated monthly for this higher level of risk.

None of our tenants that fall behind in rent will be getting evicted. Not now, not later. Not because evictions are currently banned, but because it 1) I consider it immoral 2) I know the level of reserves my tenants have and took on the known risk when I purchase and rented in class C areas. I have been compensated for this risk every month for years. 3) I have built up the reserves to be able to cover the rents for a protracted time 4) I am not over leveraged (very related to #3).

Every LL should have 6 months reserve. Every financial planner would indicate this. If you do not, then you are over extended per what virtually any financial planner would indicate. Every LL should know and understand the risks of their investments including the likely reserves of their tenants. If you want to reduce the risk of tenants not paying then purchase class A RE and accept the lower reward that is associated with the lower tenant risk. Or stay our of RE. What I am against is the LL who has been receiving rent appropriate for the amount of risk, crying up a river when the risk comes and bites them.

Now that the explanation is out of the way on to the questions: I believe LL do raise rents with increased salary or bonus. It may not be the moment of the raise or the bonus, but the statistics show that it has occurred for decades in coastal So Cal. It is referred to as market rent. For the bad times, the LL has already been compensated for the bad times. Again it is referred to as market rent. The market rent has built into it the associated risk factors including the risk of non-payment due to prolonged job loss.

4 Reply

Greg M.

Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes

6y

Originally posted by @John Clark:

Oh, but I do agree as to those who have a knowing intention "to NEVER pay." I just want to see if you extend the same label to established corporations pulling the same stunt. Now stop evading, and for the love of God, stop whining: Is Cheesecake Factory a den of thieves or not?

FYI, Cheesecake Factory said they were not paying April rent due to their cash position. They are basically hoarding their cash along with drawing from a LOC to make sure they have the funds to continue operations when the time is clear. They also stated that they hope to work with their landlords on their rent payments. I've not seen a single article mention that they never intend to pay the April rent, but rather they want to work with landlords, paying the rent when their cash flow is back to normal.

Also, one thing that is very different from Cheesecake Factory and a normal apartment tenant is that CF is an anchor location. They are a big draw for a mall. They can be worth more to the landlord that their actual rent.

3 Reply

Chris Dress

Investor · Lees Summit, MO · Member since 2015 · 3 posts · 2 votes

6y

@Heather Frusco I have contacted my lien holders and ALL have agreed to forebearance for 90 to 180 days.

I don’t like to accept less than the full amount of rent but many of my tenants are experiencing lost wages of between 40 and 100%....unfortunately most/all have NO cushion or credit cards or rich relatives to borrow from.

As a result, I am deferring a portion of the rent due commensurate with the income they have lost during the next 30 days. Hopefully in that time, some of the government programs will kick into gear and provide them with additional income.

At the end of 30 days I will reassess the overall situation and determine my stance going forward.

Best of luck to all and be safe!

1 Reply

John Clark

Member since 2018 · 1k+ posts · 1k+ votes

6y

"FYI, Cheesecake Factory said they were not paying April rent due to their cash position. They are basically hoarding their cash along with drawing from a LOC to make sure they have the funds to continue operations when the time is clear"

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So let's break this down, Greg. CF is deliberately not paying rent, borrowing money without income, AND has never said that it would pay the April rent at any time. It also spent money on dividends (frittering away money better used in reserves?) and paying exhorbitant (sp) salaries (2 million to the CEO).

By the way -- cheesecake factory is never an anchor tenant -- physical footprint is too small.

I just want Heather to admit that if non-paying tenant humans are thieves (her word was shoplifters), then non-paying tenant corporations are thieves, too. So far she's running away from her own words. Not the hallmark of a mature, intelligent, person.

0 Reply

Account Closed

Contractor · Placerville, CA · Member since 2019 · 85 posts · 66 votes

6y

@Jay Hinrichs. Um at the Fremont plant if they just hustled a little bit they could make all three ;)

0 Reply

Heather Frusco

OP

Investor · Union, NJ · Member since 2020 · 81 posts · 312 votes

6y

@John Clark I'm sorry sir but if you are not able to realize that using a paid service without intending to pay for it, is wrong... don't really know what you would like anyone to say... I've got a tip for you... it's wrong. Something which you should have deduced from reading my original post. I'm not trying to offend you but your analogy/example not only does it not apply here... but no one really knows what you're referring to or what the basis of your argument is... which is why I'm one of the only here which has at least entertained your posts. So for the record John, and again not trying to offend you but if the my original post was not clear enough... if you are continuing to use a service with the known intention of not paying it back... it's wrong... extrapolate it out and apply it universally. Hope that helps you connect the dots.

6 Reply

Conrad Metzenberg

Rental Property Investor · Santa Barbara, CA · Member since 2015 · 78 posts · 34 votes

6y

i'm glad to see most the replies aren't ice cold. I'd also like to ask the question, how many people do you think are out looking for a place right now? I'd guess damn few. The unemployment line grows. Those that can afford a roof over their head are trying to stay under it as much as possible and away from the 'infected.' Even if you could boot a tenant, I don't think you'd have the best luck finding a quality one at the moment.

3 Reply

Dan H.Pro Member

Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes

6y

Originally posted by @Greg M.:

Originally posted by @Mary M.:

Yeah, more greedy landlord comments. Lets be sure to look like total asses to the world during this human crises.

Eta: the govt is going to be the lender/payer of last resort - my guess is that all those that make snarky "comrade" comments will have no problem eating at the emergency fund trough - or, maybe you will be sending your cash the govt is sending back? When you do that, then lets talk :)

You're funny! The gas station charges full price during this human crisis and they aren't greedy. The supermarket charges full price during this human crisis and they aren't greedy. The dry cleaner charges full price during this human crisis and they aren't greedy. My pool guy charges full price during this human crisis and he isn't greedy. The landlord charges full price during this human crisis and ****ing mother****er, greedy son of a ***** deserves to die.

Sorry, but I'm not getting a discount anywhere on my purchases. Not sure why I should be giving them out. Enjoy your 5 Star Yelp reviews. Maybe your family can eat them when hungry.

And yes, I will be happy to take payment from the government for anything and everything. Because unlike around half of the people in this country, I pay taxes. I send the government well into six figures every year. So yeah, if they're handing out free cash I'll take some of my money back.

Each of those trades have different risks. For example during the fuel embargo gas stations had a lot less gas to sell but the government, after the prices started to sky rocket, capped gas prices. Gas stations lost money, their supply was limited but they could not charge enough to reflect the lacking supply (for the same reason that on cannot charge $100 for hand sanitizer now - It is considered gouging). It was a supply side risk. Ideally this risk was reflected in every gallon of gas that was sold prior to the risk manifesting. It is part of risk management. You make sure that you can handle the risks (ideally reduce the risk (in RE terms this would be done by renting in higher class areas) and to overcome the risk (in LL this could be via reserves)).

To place the LL risks onto occupations that do not share the same risks is not a great analogy. It is akin to expect LL to reduce rent on the gas station owners during the fuel embargo. LL should know the risks and be prepared to deal with them. Similarly the gas station owner should know the risks (supply risks, EPA risks, zoning risks, etc.) and be prepared to deal with them.

The pool guy and the dry cleaner have risks associated with the economy. If I am laid off, I do not use a pool guy or wear clothes that requires dry cleaning. Most businesses have risks, but they vary from business to business. The pool guy services are not a necessity so he looses work/income. Housing is a necessity. I think we all knew this. We cannot simply take away the housing on a large percentage of the population (3.3M seeking unemployment).

0 Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

6y

Originally posted by @Chris Dress:

@Heather Frusco I have contacted my lien holders and ALL have agreed to forebearance for 90 to 180 days.

I don’t like to accept less than the full amount of rent but many of my tenants are experiencing lost wages of between 40 and 100%....unfortunately most/all have NO cushion or credit cards or rich relatives to borrow from.

As a result, I am deferring a portion of the rent due commensurate with the income they have lost during the next 30 days. Hopefully in that time, some of the government programs will kick into gear and provide them with additional income.

At the end of 30 days I will reassess the overall situation and determine my stance going forward.

Best of luck to all and be safe!

this is great news for borrowers it really is.. and I have to say most humbly I got shouted down 3 weeks ago from folks thinking the lenders would not work with them.. I felt strongly they dont want a repeat of 08 to 2011.. this will be the norm now.. PHEW thats going to save a lot of folks bacon.

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0 Reply

Gary L Wallman

Rental Property Investor · Beavercreek OH · Member since 2018 · 422 posts · 970 votes

6y

Originally posted by @Heather Frusco:

Originally posted by @John Clark:

"If you say so John. Silly us for giving tenants the option to make ends meet by allowing them to pay with a credit card and absorbing the processing fees. "

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And if they refuse, Heather, you call them thieves. Now stop singing and dancing and evading the question. Are you going to boycott Cheesecake Factory for being a den of thieves? If not, why not? Its CEO made a deliberate decision to not pay rent.

John, don't really know what you're talking about... but there is no Cheesecake Factory where I am... way overrated. And again, CC is an option that Tenants fortunate enough have available during an emergency or you can certainly try to seek financial assistance from the govt. or you can seek a personal loan or you can ask family and friends for assistance or you can downsize all together. Hope that helps.

I'm totally with Heather. Heck, as a LL I've charged funds on a credit card to acquire a house to rent. Not hundreds or thousands, but tens of thousands of dollars. All on the faith I could make it work.

After twenty years of scrimping and saving and hustling and remodeling and borrowing I no longer need to, thankfully.

But to suggest asking a tenant to use a credit card for a bridge loan for a month is immoral. Give me a break. Much better to pay your rent with it then a 60 inch TV or Door Dash. 2 of my tenants favorites.