Rental Property Investor · Ottawa, ON · Member since 2019 · 68 posts · 225 votes
Hey guys!
We have 12 units and the quarterly water/sewer bill is due this month. The tenants are responsible for that but the city only sends the bill to the owner so we usually send them a copy by email and the tenants send e-transfers. We’re debating offering to pay it for this one time due to the circumstances (obviously we would make this clear in an email). We’re hoping they’ll be grateful and it’ll help us collect 100% of the rents for May. We would use our stimulus check to cover the expense. What are some of your thoughts on this?
@Natalie Cloutier to me it is great that you want to do something nice but I'd rather collect the money for the water bill and donate your stimulus check to Feeding America or some other charity. Some or possibly even many of your tenants may be doing okay and not need the extra help, but the people going to the food bank almost certainly do. In my opinion you want to maximize the amount of good the money you're willing to spend will do.
@Natalie Cloutier to me it is great that you want to do something nice but I'd rather collect the money for the water bill and donate your stimulus check to Feeding America or some other charity. Some or possibly even many of your tenants may be doing okay and not need the extra help, but the people going to the food bank almost certainly do. In my opinion you want to maximize the amount of good the money you're willing to spend will do.
My personal belief is that this is going to get much worse over the next few months and perhaps using the funds on a case by case basis (as people become sick or unemployed) and truly can't pay may benefit all parties best.
We have 12 units and the quarterly water/sewer bill is due this month. The tenants are responsible for that but the city only sends the bill to the owner so we usually send them a copy by email and the tenants send e-transfers. We’re debating offering to pay it for this one time due to the circumstances (obviously we would make this clear in an email). We’re hoping they’ll be grateful and it’ll help us collect 100% of the rents for May. We would use our stimulus check to cover the expense. What are some of your thoughts on this?
Kindly share your opinions :)
Thanks
oh look my LL has so much money they are paying my h2o bill. Maybe he doesn't need the rent.
i would get as much money now & if things get worse then be generous
@Kirk R. Lol I believe you made a similar comment on my last post and my tenants ended up reacting the exact opposite way :) They were grateful and we collected every single one of our rents. We have B and A class tenants, we keep it professional and respectful and we never have issues like this. We definitely considered this but we’re not too worried :) thanks for your input though
@Kirk R. Lol I believe you made a similar comment on my last post and my tenants ended up reacting the exact opposite way :) They were grateful and we collected every single one of our rents. We have B and A class tenants, we keep it professional and respectful and we never have issues like this. We definitely considered this but we’re not too worried :) thanks for your input though
I agree with @Kirk . The problem is that it does send a message. You would like for that message to say that you are a kind person. But, it can be taken differently by a tenant. It can be seen as condescending, even. But, it definitely says that you aren't hurting for money, and it sets a precedent that you don't necessarily expect them to have to pay you what they owe you.
I rented 25 units in a 26 unit building for many years and I lived on site. 98% of them paid every month and never asked for favors. There will always be that 2% who makes as much or more than everyone else, and yet expects to be treated differently.
During the 2008 crash, the tenants that I had who couldn't pay their rent gave me notice to move out and didn't leave owing us money. But, I agree that there is no need to offer a break before it's needed or even requested. And if you have multiple units, notice that some tenants will always make their rent/home expenses a priority no matter what. They'll buy used vehicles instead of new ones, cook at home, etc., etc.
The 2% who were a problem for me were gone by the time the crash happened - they were inherited tenants who I ended up getting rid of because they actually prioritized tattoos and vacations over paying their rent. I could tell you stories.
But, you prioritize your mortgages right? You don't expect your mortgage lender or your county tax assessor to offer you breaks. This is the grown-up world. For tenants who aren't able to pay their rents, it's time to give notice and go move back in with family, if necessary. That's what I'd do. Wouldn't you? Even low income people will do this rather than have their credit trashed or have an eviction on their report.
Anyway, I think you're a kind person, but this is not a good idea, in my opinion.
@Natalie Cloutier It is up to you. You know what your tenants are like and you need to do what you feel comfortable with. Are most of them out of work or are they still working?
From past experience, most tenants will not appreciate you doing this and will think you have the money anyway to pay it. Sets a precedent moving forward that in the future you will pay bills for them when things get tough.