Investor · Milwaukee, WI · Member since 2013 · 1k+ posts · 1k+ votes
With May coming due and the pandemic another month in and no end in sight, I wonder what other landlords are going to do this month? No pay no stay? Tally it up and evict later? Raise rents to cover losses? Grace? Blanket policy? Case by case? How are mortgage deferments going? Is anyone in an area without an eviction ban? Is anyone in an area with an eviction ban but not a foreclosure ban? Has anyone received an SBA loan or other assistance?
Last month was pretty interesting, but most rents got collected. I predict this month is going to be different.
I haven't decided yet. I guess I ought to make up my mind. All of my tenants are screwed.
Most places you can't evict them. I have one couple that I know is requesting help from the govt. If people have problems paying, I will work with them on a payment plan. I won't cancel rent and won't raise other people's rent to cover the loss.
Investor · Omaha, NE · Member since 2019 · 130 posts · 139 votes
6y
@Account Closed Certainly would not go for a grace period where no rent would be owed, but rather come up with a plan if the tenant reaches out to you about payment issues. Watch the video Brandon Turner has posted regarding rent collection during this pandemic as it offers great insight to the steps that you can take without panicking. For new tenants that are moving into vacant properties if their credit is not excellent I have collected rent for first month, last month, and security deposit which provides some additional security.
Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
6y
It will be interesting to see how May turns out. April wasn't too bad for rent collections. I think May will be slightly worse. We are waiving all late fees at our properties and working with tenants on payment plans. That being said, we are being stern when telling tenants that if they do not pay or consult with us, they will be filed for eviction once the courts open back up.
Rental Property Investor · Tampa, FL · Member since 2020 · 77 posts · 42 votes
6y
Also plan on collecting rent. out of 8 units, 4 of them are section 8, 2 of them work in healthcare, 1 works for nursing home and one gets disability. So their income does not change. Section 8 is a blessing during these times. And no issues with anyone yet. I'm really surprised more people do not go section 8. You charge the same rents, they are fearful of being kicked off so they pay on time and take care of the property. Anytime you do have an issue all you do is call their assigned hud agent. They immediately get a warning to pay or resolve the issue. There is a waiting list of about 3,000 families where I'm located. When they move out they have to or are supposed to leave the unit as they found it, move-in ready. You run the same background checks and vet them like you would any other tenant. So you can weed out those with a bad background. It's the sure way to go. I'm converting all of my units over to section 8
@Account Closed How many tenants? Did they just get stimulus checks? What do your tenants do?
I self-manage. I have few enough tenants to know their stories intimately. Their stories are not all the same, yet they are all the same. Very typical of anyone in America.
Our state has a 60 day freeze on evictions and foreclosures, expiring May 27th. Our governor has extended the shut-down to the end of May, schools are closed for the year. I will not be surprised to see the freeze extended considering our particular governor. Not sure if the state will provide any assistance, crickets so far. Of course we have unemployment and food stamps and a pretty good food bank system. Property tax, water utility and energy are not being deferred. I pay tax and water, tenants pay utilities (water bill follows the property owner in Milwaukee).
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
6y
@Account Closed We've been staying in contact with tenants all month of April. Supplying tenants with appropriate resources for money, food and other assistance. We are trying to be as much of a supports for our tenants who have lost their jobs or directly affected by Covid-19. We have alot of section 8 tenants so those are on auto-pilot. We expect more loses this month but will power through. Thanks for adding this post. All the best to you!!!
I plan on sitting back and collecting 100% of rents again.
This.
Some people on here claim self-managing from across the country is a bad idea and there are many on BP who self-manage from afar as I do getting 100% of rents because we accept only solid tenants in our rentals.
Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
6y
We collected about 95% in April here in Central NJ. We can't evict in NJ right now and Comrade Phil Murphy recently encouraged all tenants to use their deposit to cover rent. Guy just up and stuck his beak in private contracts. Oh and he told tenants to report landlords to the state if your landlord "gives you sh**", which could mean, hey buddy it's the 15th, can you pay your rent?
Anyhow, this is what we did in April and what we will do in May:
-We have waived late fees
-If there is financial hardship it must be proven (letter/email stating you lost your job, document that you filed for unemployment, proof of previous income to show it was paying your rent)
-Come up with a payment plan for the tenants
That has worked with most tenants. We manage a large student population and they have tried like hell to default (parents included). When I show empathy and ask for proof to help them, I never hear from them again.
Rental Property Investor · Northern NJ · Member since 2019 · 673 posts · 677 votes
6y
Ditto to @Peter T. (Btw why cant you be in North Jersey? Always enjoy your post). I'm in NJ and have one tenant paid up to June. Other tenant hasnt mentioned hardship yet. I waived late fees and need things in writing for hardship.
Not trying to sound callous but between stimulus check, state unemployment and federal unemployment, I'm going to need info as to why they cant pay if they are receiving over $3k a month in government assistance, not including one time $1200 pay out. Continued communication is key.
Ditto to @Peter T. (Btw why cant you be in North Jersey? Always enjoy your post). I'm in NJ and have one tenant paid up to June. Other tenant hasnt mentioned hardship yet. I waived late fees and need things in writing for hardship.
Not trying to sound callous but between stimulus check, state unemployment and federal unemployment, I'm going to need info as to why they cant pay if they are receiving over $3k a month in government assistance, not including one time $1200 pay out. Continued communication is key.
Haha come to Central NJ where the real cash flow is. Then I can help you.