May Rent Coming Due - What Are You Gonna Do?

Question

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.

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.

John Underwood · Answer

I plan on sitting back and collecting 100% of rents again.

Account Closed · Answer

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).

Peter Tverdov · Answer

Haha come to Central NJ where the real cash flow is. Then I can help you.

Mark F. · Answer

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.

Peter Tverdov · Answer

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.

I would stick to that.

Theresa Harris · Answer

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.

Shawn Ackerman · Answer

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!!!

Satyam Mistry · Answer

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.

Jill F. · Answer

Account Closed How many tenants? Did they just get stimulus checks? What do your tenants do?

Alexandra Hansil · Answer

Would someone be able to share the letter they are sending to their tenants when they are late.  Tks!

May Rent Coming Due - What Are You Gonna Do?

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