Should I use a Request for Rental Assistance Form?

Question

I've seen a lot of spirited arguments over a REI responsibility during the onset of this pandemic.  As a property manager for over 300 units, many of whom are owned by investors with 1-2 properties to their name, I don't have the luxury to not collect rent for our owners.  There are those that have been truly hurt, and more will surely follow, but a plan needs to be in place to ensure tenants are simply going for the easiest option.  From my perspective prorating rent is a last resort and only available to those that truly need it and have shown a willingness to work with us on a solution.

Our process of verifying the tenants have explored every available option mirrors closely to Brandon Turners recent video.  As a responsible PM we need to be verifying the tenants claims of hardships before presenting any kind of work around to our owners.  I've drafted a simple form I intend to send out to anyone that reaches that stage.  I would love some constructive criticism on the questions below or if there is a better route.  Anyone that was approved for relief or prorated rent would sign a lease addendum outlining the new terms approved by the owner.

https://www.youtube.com/watch?v=1CLa0UJCn3w

Please take a few moments to tell us how COVID-19 has affected your household and what steps you have taken so far?

Have you lost your employment or seen a drastic reduction in paid time due to COVID-19?

Have you applied for unemployment?  If so when?

Have you explored other temporary employment opportunities?  If so where have you applied?

Have you reached out to friends or family to provide assistance?

Have you applied to the local government assistance programs?  If so what programs and when?

Michael Peters · Answer

Yes the questionnaire is meant to filter out the tire kickers.  Those that actually need the help shouldn't have any issue with providing some additional documentation to demonstrate how they were adversely affected.  I won't be offering any rent forgiveness.  Your cell phone bill or your car payment aren't going to be waived.  Someone that is able to demonstrate the need is real would have a rent prorated to the end of their lease to cover any missed payments.  Late fees would be forgiven once the remaining payments are made on time.  This would be the last option since there are plenty of opportunities out there right now for those willing to pursue them.

John Teachout · Answer

I guess if you're using the "questionnaire" as a means of vetting someone for rental assistance, then it's appropriate. At this point, we have no intention of paying anyone's rent for them. We'll waive late fees but they'll owe whatever rent came due during their stay. So far we've had one tenant pay rent so far. Any beats none, lol.

Michael Peters · Answer

I think we all could all draw a parallel to selecting a qualified applicant.  If someone has a sporadic employment or tenancy I'm sure any good landlord would dig deeper either into social media, their bank statements, verifying employment, inspecting the condition of their car, or even requesting a walk through of their current residence.  We're simply looking to protect our investment and ensure we select someone who will treat the property with respect.@John Teachout I totally agree that they are personal questions and some may find it uncomfortable to answer.  Losing a job is hurts there is no question about it.  Having to ask a family member for assistance or filing for unemployment doesn't feel good.

But as the agent of the owner I cannot in good conscience go to them and ask them to shoulder the financial burden in place of the tenant if I don't do my due diligence to ensure it is warranted.  Some people will need help and we'll do what we can to help weather the storm.  Others will simply try to take the the easy route and a few will try to take advantage of the situation.  As much as its uncomfortable for PM and Landlords our job is to separate out who truly needs the help and deserves it.  If you could only shoulder the burden of 1 of your 2 houses wouldn't you want to save it for the tenant that truly needs it and not just the one that asks first?  In the long run wouldn't asking the tough questions now both benefit the tenant and owner in the long run?

Christen G. · Answer

Thank you for providing your questions @michaelpeters. I like the concept because it's a plan I can send my PM (as a last resort) if the tenant is communicating. Every tenant's scenario is bound to be different and nuanced, so having the same set of screening questions helps level the playing field. As an owner with an outside PM - having this document/protocol in place avoids us having to 'shoot from the hip' if it happens. I heard someone else call it their "Life Interruption/Rent Assistance Request Form" - I liked that a lot.

John Teachout · Answer

My personal opinion is that this is getting into someone's business. You're not their financial coach and I also don't feel that a landlord/manager's job is to ensure that the tenant has explored a variety of aid avenues. I maybe would present some of those questions if someone says "I can't pay the rent". But other than that, I don't plan to guide anyone's financial decisions.

Should I use a Request for Rental Assistance Form?

Most Popular Reply