I am offering my tenants a Covid-19 RENT DISCOUNT

Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes

Fellow investors and landlords,

I have decided to offer my tenants a small discount for paying their rent on time, in light of the current situation. Its not because I think it will be a huge deal, mainly to thank them for being with me and to help them at least a little during this crazy time.

The following is the beginning part of the email I just sent out to all my tenants (for the properties that I self manage):

Tenant's name,

Effective now, I will be offering the following credits:

Rent submitted 5 days early (by the 26th of the prior month) - 10% DISCOUNT

Rent submitted on time (by the 1st of the month rent is due) - 5% DISCOUNT

I will be waiving late fees. Keep in mind that rent is still due.
-----------

And then there is a few more short paragraphs about thanking them for their communication, other perks I am giving them, and list of suggestions they can use to pay rent if they are having trouble.

Thoughts on this? Am I crazy? Am I being premature here?

Would love to know the communities thoughts on this. What are you doing personally for your rentals and tenants? How worried are you about this situation and how it will affect your portfolio?

Thanks, -Andrey

12 Reply

128 views

Most Popular Reply

Nathan GesnerBusiness Member

Moderator

Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Nice gesture. I disagree with it because your tenants are almost guaranteed to make as much money in April as they did in January. Government handouts are actually increasing income for people at middle income and lower. So you're just adding more handouts to people that probably aren't suffering as badly as the news indictates.

just my opinion. You're doing what you think is right and trying to help people. Well done.

The DIY Landlord Book4.7243 Reviews

Website View Page

21 Reply

See this reply in the discussion

61 Replies

Jump to latestLatest

Sort by

Jacob Fafard
Member since 2019 · 12 posts · 8 votes
6y
So this coming from a tenant(aspiring soon to be real estate investor). I think it's a nice gesture. I understand some people are not prepared for something like this. That being said as an investor, it is not your responsibility for the tenants financial literacy.
I think offering any aid in this way in compassionate and a kind gesture.
6 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
Nice gesture. I disagree with it because your tenants are almost guaranteed to make as much money in April as they did in January. Government handouts are actually increasing income for people at middle income and lower. So you're just adding more handouts to people that probably aren't suffering as badly as the news indictates.
just my opinion. You're doing what you think is right and trying to help people. Well done.
The DIY Landlord Book4.7243 Reviews
Website View Page
21 Reply
Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
6y
@Andrey Y.
You definitely have compassion during this unpredictable time. I went a different route. I felt if I offered it they would take it even if they didn’t need it. So I took the approach that rent is due this month and if they need assistance they will request it. I’ve been contacted by a couple of tenants and here is what they asked for;
1. Need an extra week to pay rent. No problem, they been a great tenant for two years.
2. Hours got cut, I might be short this month, a couple hundred dollars, but I’m trying to work it out. We’ll see if they need help.
All other tenants are good to go.
I feel free May 1 will be more of an issue if people are not back to work. Executive order was instituted on March 21. They were working most of the month of March. Should be good for the most part at least this month.
5 Reply
Patrick M.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
6y
I would not expect my tenants to put in a days work and only receive 90% of their pay.
Every dollar I receive is money that will be contributed to the allocation of resources for my buildings.
I refuse to signal to my tenants that I am profiting to such a degree that 10% is something I can do without. Additionally, I believe it shows fear about receiving your rent in a timely fashion and not so much an altruistic gesture since it is tied to dates.
If this continues and your tenant not able to pay rent, when you work out a payment plan the tenant will want to know why the discounted rent is no t the ceiling- since you don't need the 10%.
My units are now lived in 24/7. They have become homes and offices. I cover heat and water which will now be higher. If a tenant can't pay full rent then I will happily work with them- but I need every penny of rent and I will never signal otherwise.
I would suggest to any of the hobbyist- do this: Collect full rent and when we come out of this, if you so desire, then rebate the rent... (yeah- doesn't make much sense, right)
Due to the new bailout, unemployment benefits will soon make it more profitable for some out of work then if they were working. And then there is the $1200 (I won't be getting a check)
Besides you signal to the progressive public that rents are too high.

10 Reply
Michael Ablan
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Andrey Y. - I did something similar. I offered a 10% discount if they prepaid May, June or Julys rent. My thought process was to lock in rent while things are still kinda good, rather than risk it if things really start falling apart. Gotta lock in them tax returns while we can haha
I've had 4 tenants take advantage of it so far
6 Reply
Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
6y
It's definitely not the policy we are doing. I kind of think telling people up front; "no late fees", is the wrong way to go. As a matter of fact, for those that want to take advantage, there is zero incentive to pay rent now. You can't evict, and you just told them there will be no fees.
I already posted we did not notify tenants of anything. And we received all rents for April already, with no discussion or requests from tenants. And with the stimulus package, there should not be any late rent payments until at least August, when unemployment may either run out or be reduced. We would work with tenants if they truly need assistance, but we aren't encouraging them to ask either.
5 Reply
Andrey Y.
OP
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
6y
Originally posted by @Anthony Wick:
It's definitely not the policy we are doing. I kind of think telling people up front; "no late fees", is the wrong way to go. As a matter of fact, for those that want to take advantage, there is zero incentive to pay rent now. You can't evict, and you just told them there will be no fees.
I already posted we did not notify tenants of anything. And we received all rents for April already, with no discussion or requests from tenants. And with the stimulus package, there should not be any late rent payments until at least August, when unemployment may either run out or be reduced. We would work with tenants if they truly need assistance, but we aren't encouraging them to ask either.

If someone wants to take advantage, they will anyway. They know they can't get evicted. I have no idea what me saying "no late fees" would bring into someone's head that they will take advantage. Rent is still due.
0 Reply
Andrey Y.
OP
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
6y
Originally posted by @Patrick M.:
I would not expect my tenants to put in a days work and only receive 90% of their pay.
Every dollar I receive is money that will be contributed to the allocation of resources for my buildings.
I refuse to signal to my tenants that I am profiting to such a degree that 10% is something I can do without. Additionally, I believe it shows fear about receiving your rent in a timely fashion and not so much an altruistic gesture since it is tied to dates.
If this continues and your tenant not able to pay rent, when you work out a payment plan the tenant will want to know why the discounted rent is no t the ceiling- since you don't need the 10%.
My units are now lived in 24/7. They have become homes and offices. I cover heat and water which will now be higher. If a tenant can't pay full rent then I will happily work with them- but I need every penny of rent and I will never signal otherwise.
I would suggest to any of the hobbyist- do this: Collect full rent and when we come out of this, if you so desire, then rebate the rent... (yeah- doesn't make much sense, right)
Due to the new bailout, unemployment benefits will soon make it more profitable for some out of work then if they were working. And then there is the $1200 (I won't be getting a check)
Besides you signal to the progressive public that rents are too high.

I disagree. It just shows a good gesture. I honestly didn't think most of the folks on here would be such ruthless landlords to be honest. Usually that's me, but guess I've softened up a bit.
I think making the policy temporary isn't signaling anything to them. It's encouraging them to pay rent on time or early. If someone doesn't want to pay rent, they won't anyway regardless if I offer a small discount.
2 Reply
Andrey Y.
OP
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
6y
Originally posted by @Michael Ablan:
@Andrey Y. - I did something similar. I offered a 10% discount if they prepaid May, June or Julys rent. My thought process was to lock in rent while things are still kinda good, rather than risk it if things really start falling apart. Gotta lock in them tax returns while we can haha
I've had 4 tenants take advantage of it so far

Yup, this was my thought as well. I had already spoken to my tenants ahead of time and two of them were layed off 3 weeks ago. One of them already paid. The other is a bartender and I honestly expect her to make partial payments for 1-2 months. The other lady hasn't said anything about losing her job to me but I pushed up her lease which gave her a free 5-6 days essentially.
0 Reply
Andrey Y.
OP
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
6y
Originally posted by @Nathan Gesner:
Nice gesture. I disagree with it because your tenants are almost guaranteed to make as much money in April as they did in January. Government handouts are actually increasing income for people at middle income and lower. So you're just adding more handouts to people that probably aren't suffering as badly as the news indictates.
just my opinion. You're doing what you think is right and trying to help people. Well done.

With the amount of people unemployed and applying for unemployment, I honestly think it will take 1-2 months for most people to get a check, if they even make it through the queues and they funds don't run out. I don't think the extra $600 is unlimited I think there is a fixed $$ allocated to that. Once it's gone, it's gone.
0 Reply
Amy Aziz
Specialist · Los Angeles, CA · Member since 2019 · 587 posts · 269 votes
6y
@Andrey Y. I think its a fair and nice gesture!
0 Reply
Patrick M.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
6y
@Andrey Y.
"I honestly didn't think most of the folks on here would be such ruthless landlords to be honest."
You do us all a disservice when you say such things. There is absolutely nothing ruthless about collecting the full rent due.
You wish to pat yourself on the back- go ahead. Every landlord who goes onto social media or the news and talks about reducing and forgiving rent feeds the flames of "rent reformists" who believe landlords are making way too much.
I was in the hardware store yesterday listening to a restaurant owner bragging about the killing he made in March and looking forward to April's lockdown. He significantly reduced his staff and overhead and his landlord agreed to significantly reduce his rent.
Don't assume everyone is struggling yet.
And don't assume this will be done in 2 months! That 10% may come in handy.
6 Reply
Andrey Y.
OP
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
6y
Originally posted by @Patrick M.:
@Andrey Y.
"I honestly didn't think most of the folks on here would be such ruthless landlords to be honest."
You do us all a disservice when you say such things. There is absolutely nothing ruthless about collecting the full rent due.
You wish to pat yourself on the back- go ahead. Every landlord who goes onto social media or the news and talks about reducing and forgiving rent feeds the flames of "rent reformists" who believe landlords are making way too much.
I was in the hardware store yesterday listening to a restaurant owner bragging about the killing he made in March and looking forward to April's lockdown. He significantly reduced his staff and overhead and his landlord agreed to significantly reduce his rent.
Don't assume everyone is struggling yet.
And don't assume this will be done in 2 months! That 10% may come in handy.

So far, I haven't patted myself on the back yet. Only some other posters did.
NOT offering a discount is not ruthless, the reaction to what I am doing from some landlords here is. If you can't afford a 5% or 10% discount in rent, YOU have a terrible business model or don't have adequate reserves. Likely both.
Its your own fault that you decided to invest in a market where 5% in "cash flow$ will make a substantial difference to your well being.
See my recent thread
https://www.biggerpockets.com/...
It is very pertinent to what we are discussing. If you had invested in a PROFITABLE market, not to be confused with a cash faux market, you wouldn't be in a situation where 5% or 10% rent discount will make an appreciable difference to your bottom line.
You fell for the cash flow shpeil, decided to take one management-intensive assets ie. "cash flow" markets whose property values don't even keep up with inflation.
I have been profitably managing my rentals from 6000+ miles away for 4 years now, because I target a specific class of tenants and profitable markets. If you have to invest your own time, sweat, and energy to "cash flow", are you an investor or something else? Don't confuse cash flow with profit.
3 Reply
Josh Bakhshi
Real Estate Agent · Atlanta, GA · Member since 2015 · 359 posts · 158 votes
6y
Andrey,
I understand where you are coming from. I agree with you that we should work with our tenants. There are some that I worked out payment plans for and others I didn't. Main reason for my decision has to be what the history with each tenant was prior to this.
That being said, I do think it is premature to offer discounts before they ask you for it. Just a little business advise.
Another suggestion would be not to call names like "ruthless landlords". This is not the place for that.
1 Reply
Patrick M.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
6y
You are so naive.

You use the term "afford" Very loosely and it is just that which sets up problems. If you continue to broadcast it to your tenants and the world that 10% is something you can easily afford doing without then you set bad precedent.
Every dollar I have set for rent and collect for rent is accounted for in my business. It has nothing to do with "cash flow."
As a business I must prepare for the worst- and the worst is a tenant who paid his April rent not paying his May rent. I would prefer to have my full April rent in that event.
5 Reply
David Jay
Investor · Reno, NV · Member since 2015 · 69 posts · 48 votes
6y
Hey here's what I did. Two weeks ago I told all of my tenants that there rent was discounted 20% in April. I have 13 houses. Five I manage myself, and eight in a neighboring city are managed by a property manager. Of the ones I self manage I've collected five of five rents already. We'll see how my property manager does. Did I leave some money on the table, perhaps. But my friend who was not proactive was just told that none of his tenants were paying since they were awaiting benefits etc.....and would pay later when they were received. Our state is currently under a no eviction and no late fee order so he'll just have to wait. Now of course, my discount is only applicable if they pay on time, otherwise they owe full rent. I'll consider other arrangements if they've documented and explained their situation, it needs to be more than I'll pay later. Our governor just extended stay at home another 30 days and tomorrow I will let them know the discount applies to May also. It doesn't leave much profit, but it pays all the bills. My monthly nut is five figures so I can hold on a whole lot longer with that covered every month. I think now is the time to be thoughtful and kind. If I put a couple hundred in someone's pocket who didn't need it I'd hope they'd share it with someone who did. Frankly, if I get through this with my loved ones and myself alive and the only hit I take is financial I'd feel blessed.
3 Reply
Llewelyn A.
Investor / Broker · Brooklyn, NY · Member since 2016 · 665 posts · 1k+ votes
6y
The advantage us Landlords have is that we get to investigate and know the tenants financially while they do NOT know our financials.

90% of my tenants are doing well and I would say quite well. They would probably qualify for the to 10% of Earners.

10% are NOT and I know who they are.

If one of the 10% who are not wealthy are struggling because they lost their jobs in the Gig economy where Tips are probably the bulk of their earnings, I will give them a rent rebate of about 10% to 20% of their portion of the rent (most of these non-wealthy tenants have roommates in their apts).

I do NOT lower their rent. I give them a gift of money AFTER they pay their rent to help with their struggles.

3 of my tenants are giving birth within the next 2 months. They did not even ask for a handout, but I want to give them a gift of money just to help them considering how overwhelmed our NYC hospitals are AND how scared they are to give birth here.

In a time of crisis, not every Landlord has the means to help.

BUT, if I have that means, I will help the ones who are struggling since I can verify that they happen to be struggling during this time.

I don't see my tenants as only tenants. I see them as residents and neighbors. In fact, I see them as family.

While I don't share the same ideology as the Progressive Left that wants to give free rent to EVERY tenant, I firmly believe that if there is free rent to be given, it should only be given through a Means Test where it is verified that the tenant is actually struggling.

I am in the best position to determine that. Therefore I help those that I know need it most.
Also, I see great benefits to Landlording this way.
If tenants hate your guts, it is most likely the tenant will be looking for anything that you do wrong to sue you.
If tenants love you, they will stick up for you and support you in case others try to sue you, for instance, a person who supposedly slips on your property. I expect my tenants to support me with an affidavit testifying on my behalf. And I'm sure they will from experience.
I don't look at these gifts or treating the tenants well as giving them some advantage. I look at it as extra liability protection.
I also look at it as a job where I love the people I work with. After all, what's the point of being a Landlord if you don't like the job?
4 Reply
David Jay
Investor · Reno, NV · Member since 2015 · 69 posts · 48 votes
6y
Hey here's what I did. Two weeks ago I told all of my tenants that there rent was discounted 20% in April. I have 13 houses. Five I manage myself, and eight in a neighboring city are managed by a property manager. Of the ones I self manage I've collected five of five rents already. We'll see how my property manager does. Did I leave some money on the table, perhaps. But my friend who was not proactive was just told that none of his tenants were paying since they were awaiting benefits etc.....and would pay later when they were received. Our state is currently under a no eviction and no late fee order so he'll just have to wait. Now of course, my discount is only applicable if they pay on time, otherwise they owe full rent. I'll consider other arrangements if they've documented and explained their situation, it needs to be more than I'll pay later. Our governor just extended stay at home another 30 days and tomorrow I will let them know the discount applies to May also. It doesn't leave much profit, but it pays all the bills. My monthly nut is five figures so I can hold on a whole lot longer with that covered every month. I think now is the time to be thoughtful and kind. If I put a couple hundred in someone's pocket who didn't need it I'd hope they'd share it with someone who did. Frankly, if I get through this with my loved ones and myself alive and the only hit I take is financial I'd feel blessed.
0 Reply
E.S. Burrell
Rental Property Investor · MI · Member since 2019 · 192 posts · 205 votes
6y
@Patrick M.
Wow!! Thank you for that reply.... spot on and made me think.
1 Reply
E.S. Burrell
Rental Property Investor · MI · Member since 2019 · 192 posts · 205 votes
6y
@Andrey Y.
Hi Andrey,
Please don’t ask us our thoughts on this and then call us ruthless when we disagree with you. You did ask? Right? You have to be open to others opinions and how we run our business. Thanks
4 Reply
Andrey Y.
OP
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
6y
Originally posted by @David Jay:
Hey here's what I did. Two weeks ago I told all of my tenants that there rent was discounted 20% in April. I have 13 houses. Five I manage myself, and eight in a neighboring city are managed by a property manager. Of the ones I self manage I've collected five of five rents already. We'll see how my property manager does. Did I leave some money on the table, perhaps. But my friend who was not proactive was just told that none of his tenants were paying since they were awaiting benefits etc.....and would pay later when they were received. Our state is currently under a no eviction and no late fee order so he'll just have to wait. Now of course, my discount is only applicable if they pay on time, otherwise they owe full rent. I'll consider other arrangements if they've documented and explained their situation, it needs to be more than I'll pay later. Our governor just extended stay at home another 30 days and tomorrow I will let them know the discount applies to May also. It doesn't leave much profit, but it pays all the bills. My monthly nut is five figures so I can hold on a whole lot longer with that covered every month. I think now is the time to be thoughtful and kind. If I put a couple hundred in someone's pocket who didn't need it I'd hope they'd share it with someone who did. Frankly, if I get through this with my loved ones and myself alive and the only hit I take is financial I'd feel blessed.

Good on you for being proactive. A lot of folks will tell you that you are a fool and its a bad business decision lol
I wonder where in life and business you have to be that you cannot provide a little compassion and help to someone who probably needs it more than you.
1 Reply
Andrey Y.
OP
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
6y
Originally posted by @E.S. Burrell:
@Andrey Y.
Hi Andrey,
Please don’t ask us our thoughts on this and then call us ruthless when we disagree with you. You did ask? Right? You have to be open to others opinions and how we run our business. Thanks

You're mistaken. I myself am definitely a firm, business-minded, and calculating type of individual when it comes to managing rentals. But I think most of the reasons given for sound like justifications for choosing a subpar asset class with subpar tenants, and they want to justify to themselves why they would never do such a thing as to help a tenant out a little (and I know the reason why which is below).

Really, it was a mistake to offer a small discount for paying on time?? OK, if you are that reliant on "cash flow" that 5% will make a a big difference at a time like this, you aren't an investor. You are a ruthless landlord (no shame in that) who chose the wrong asset class and tenant profile, and trying to bemoan someone for doing something a little nice thing for their tenants.

You are perfectly in your right to not offer discounts. But a lot of landlords, myself and others on this thread, have done so. Bad idea? Choosing a non-profitable market where you have to chase down every $100.. now THAT was a bad idea.

@Jay Hinrichs
Thoughts on this thread Jay? I can see why you got out of landlording ;) you and I are too nice given what some people are saying in this thread!
1 Reply
Andrey Y.
OP
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
6y
Originally posted by @Llewelyn A.:
The advantage us Landlords have is that we get to investigate and know the tenants financially while they do NOT know our financials.

90% of my tenants are doing well and I would say quite well. They would probably qualify for the to 10% of Earners.

10% are NOT and I know who they are.

If one of the 10% who are not wealthy are struggling because they lost their jobs in the Gig economy where Tips are probably the bulk of their earnings, I will give them a rent rebate of about 10% to 20% of their portion of the rent (most of these non-wealthy tenants have roommates in their apts).

I do NOT lower their rent. I give them a gift of money AFTER they pay their rent to help with their struggles.

3 of my tenants are giving birth within the next 2 months. They did not even ask for a handout, but I want to give them a gift of money just to help them considering how overwhelmed our NYC hospitals are AND how scared they are to give birth here.

In a time of crisis, not every Landlord has the means to help.

BUT, if I have that means, I will help the ones who are struggling since I can verify that they happen to be struggling during this time.

I don't see my tenants as only tenants. I see them as residents and neighbors. In fact, I see them as family.

While I don't share the same ideology as the Progressive Left that wants to give free rent to EVERY tenant, I firmly believe that if there is free rent to be given, it should only be given through a Means Test where it is verified that the tenant is actually struggling.

I am in the best position to determine that. Therefore I help those that I know need it most.
Also, I see great benefits to Landlording this way.
If tenants hate your guts, it is most likely the tenant will be looking for anything that you do wrong to sue you.
If tenants love you, they will stick up for you and support you in case others try to sue you, for instance, a person who supposedly slips on your property. I expect my tenants to support me with an affidavit testifying on my behalf. And I'm sure they will from experience.
I don't look at these gifts or treating the tenants well as giving them some advantage. I look at it as extra liability protection.
I also look at it as a job where I love the people I work with. After all, what's the point of being a Landlord if you don't like the job?

Which is exactly what I did, too. I gave them a discount AFTER they paid early or on time. Rewarding good behavior.
And I just realized what I did looks great in court. If it ever comes to eviction, I will just print out that email and say "here I did this as a token of thanks, even though I didn't have to, and they still chose to skip rent"
1 Reply
Patrick M.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
6y
3 months ago I could not have imagined that a national movement for a rent strike would take hold in the minds of tenants and the national public, fueled by the press and landlords who have taken to the airwaves to gain the admiration they lack at home. That through no fault of their own, landlords; not credit cards, not obscene car payments, would be targeted as fair game to be stiffed, was not even on Bernie's platform.

I have always maintained in my posts and in my professional life that I do not need to "be loved" by my tenants. My tenants appreciate me and I am the best landlord, hands down. I fulfill every aspect of my lease terms and when there is an issue I address it immediately. I appreciate that my tenants fulfill their requirements. As I have often said, I am so very grateful for my buildings and the financial opportunities they give me.

I am not a king- I am not some benevolent sovereign who looks down upon his subjects and decides that I shall bestow onto them some gift and trumpet it from the hilltops so that all shall know of my goodness.

I am not in need of love- I have family, and as such I know the strength of that bond and the unconditional love that goes with it. I would never in a million years look at my best tenant as family nor would I seek to love them or be loved by them.

What I find hypocritical and unprofessional is that under the surface of all of this benevolence is some sort of a cockamamie business model. "If I do this then I can secure my rent earlier." "If I do this then I shall be loved! And they shall always treat me as the benevolent sovereign that I fancy myself." "If I do this then they shall testify on my behalf." (really?)

I must keep my buildings. I must keep my buildings up to the high standards I set for them, forget about government standards. As such, in these unprecedented times, my responsibility to my tenants is to provide them the shelter and services outlined in my lease.

"I feel like the 2008 financial crisis was just a dry run for this,” said Kenneth S. Rogoff, a Harvard economist and co-author of a history of financial crises, “This Time Is Different: Eight Centuries of Financial Folly.”

“This is already shaping up as the deepest dive on record for the global economy for over 100 years,” he said. “Everything depends on how long it lasts, but if this goes on for a long time, it’s certainly going to be the mother of all financial crises.”

I prepare for the worst and hope for the best. As such, my "cash flow" will not be squandered on rebates or gifts that make me feel good. Instead it will be held to be used in the event this drags out... In the event that there is no or partial rent coming in the months ahead... In the event there is a likely moratorium on evictions for a year or more, be it by executive order or by activist court.

10% of my rents is +$1400, that money can go a long way if your back is against the wall 6 months or a year from now. The love of your tenants will not pay a mortgage. I suppose having a tenant testify on your behalf holds some value, but my tenants are vetted, law abiding citizens and would testify to the truth when subpoenaed or presented with an affidavit anyway... so not really sure of that whole bribery scheme.

I stand ready willing and able to assist my tenants during this national emergency when they require assistance.

I will not compromise my business or my buildings during this crisis. Whether it last 3 months or 24 months.

6 Reply
E.S. Burrell
Rental Property Investor · MI · Member since 2019 · 192 posts · 205 votes
6y
Originally posted by @Andrey Y.:
Originally posted by @E.S. Burrell:
@Andrey Y.
Hi Andrey,
Please don’t ask us our thoughts on this and then call us ruthless when we disagree with you. You did ask? Right? You have to be open to others opinions and how we run our business. Thanks

You're mistaken. I myself am definitely a firm, business-minded, and calculating type of individual when it comes to managing rentals. But I think most of the reasons given for sound like justifications for choosing a subpar asset class with subpar tenants, and they want to justify to themselves why they would never do such a thing as to help a tenant out a little (and I know the reason why which is below).

Really, it was a mistake to offer a small discount for paying on time?? OK, if you are that reliant on "cash flow" that 5% will make a a big difference at a time like this, you aren't an investor. You are a ruthless landlord (no shame in that) who chose the wrong asset class and tenant profile, and trying to bemoan someone for doing something a little nice thing for their tenants.

You are perfectly in your right to not offer discounts. But a lot of landlords, myself and others on this thread, have done so. Bad idea? Choosing a non-profitable market where you have to chase down every $100.. now THAT was a bad idea.

@Jay Hinrichs
Thoughts on this thread Jay? I can see why you got out of landlording ;) you and I are too nice given what some people are saying in this thread!

No.....you’re missing the point, you asked us our opinion. You received opinions. Actually you received a lot of praise. But no one who disagreed with you disrespected you by calling you out of your name. That’s all I’m saying. Run your business how you want and be happy with your decision. But let us do the same. Thank you
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.