Any landlords forgiving rents during COVID?

Real Estate Agent · Cleveland, OH · Member since 2020 · 280 posts · 365 votes

I know that a lot of landlords are suffering right now. Much has been made of the struggles of tenants facing financial hardship and many landlords have been placed at the mercy of the now-exhausted small business relief funding or forced to renegotiate with their mortgage companies independently when rent payments have come up short. However, some landlords do own their properties outright. For those who are able, I'm wondering if anyone has decided to extend their own version of relief to tenants and forgive rents temporarily for those who are struggling. No judgement either way. Just curious. I know there are some incredibly generous people out there. Nice to hear about the good they are trying to do.

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Ray Johnson

Irvine, CA · Member since 2016 · 545 posts · 614 votes

@Erin Dorsey Robinson I'm not set-up as a Non-Profit organization, so I will not be donating to this particular tenant based charity.

All kidding aside; Since all but one of my properties are professionally managed, I have no idea as to how my tenants are doing financially, around the 15th of every month, I check all the bank accounts to see if the deposits are there from the PM, they were all there this month.

If any of my PM's were to email, or call asking about rent forgiveness, I would not be happy since a major component of their job is to collect the rent every month. My answer would be NO to a rent forgiveness.

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Kriston Johnson
Realtor · philadelphia · Member since 2018 · 4 posts · 14 votes
6y
I have not but considered it for 1 of my long term tenants but of course they are lacking communication right now. my plan was to cut the rent in half so atleast I can pay the mortgage without using my own cash. Also a good feeling to help people out in need but unfortunate they seem like they want to take the unresponsive route and might lead to their evection soon. goodluck.
13 Reply
Ray Johnson
Irvine, CA · Member since 2016 · 545 posts · 614 votes
6y
@Erin Dorsey Robinson I'm not set-up as a Non-Profit organization, so I will not be donating to this particular tenant based charity.
All kidding aside; Since all but one of my properties are professionally managed, I have no idea as to how my tenants are doing financially, around the 15th of every month, I check all the bank accounts to see if the deposits are there from the PM, they were all there this month.
If any of my PM's were to email, or call asking about rent forgiveness, I would not be happy since a major component of their job is to collect the rent every month. My answer would be NO to a rent forgiveness.
14 Reply
Johnny Kang
Investor · New York, NY · Member since 2014 · 279 posts · 224 votes
6y
@Erin Dorsey Robinson
Both my tenants lost their jobs. One moved back home to be with his family in Turkey. The other tenant moved temporarily to upstate NY where his family is (I'm in NYC), however is planning to come back when things are safer in NYC and wanted to keep his place in the mean time. We agreed on 1/2 of his regular rent.
Almost everyone I know told me not to do 50% off since they're getting unemployment, along with the extra $600/wk from the federal government. The way I see it is everyone's been impacted by this pandemic one way or another. He's been a great paying, long-term tenant who was never late and even offered to pay 1 month in advance before he went upstate; not to mention, everything is costing more, either due to price gouging, not being able to find things on sale and having to resort to buying whatever is on the shelves, or the manufacturers themselves having to charge more to the stores simply due to higher cost of production with people getting sick and the employers having to pay other workers over time, etc.
So if I can afford it and at the same time, somehow provide some relief in this stressful situation, I think a little generosity goes a long way.
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Raul R.
Rental Property Investor · New York City, NY · Member since 2017 · 493 posts · 386 votes
6y
@Erin Dorsey Robinson
With the extra Unemployment benefits and stimulus checks some of my tenants are making more money being unemployed than when they were working.. I’m concern what long lasting affect this will have w the economy but for now my tenants are fine I don’t plan in providing any discounts.. I’m considering not raising the rent this year that’s about it..
6 Reply
Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
6y
@Erin Dorsey Robinson
I don’t agree with forgiving the rent. Everyone was provided a stimulus check. April 1 rent was due when most had worked 2/3 of the month. There was no reason not to be paid some of the rent. I gave tenants extra time and was able to receive all of my rent. May 1 may require assistance but not forgiving the rent. I would accept a reduction in rent if necessary, but rent will need to be made up. We can work together.
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Erin Dorsey RobinsonPro Member
OP
Real Estate Agent · Cleveland, OH · Member since 2020 · 280 posts · 365 votes
6y
@Kriston Johnson that's a shame on their part. Communication is everything. They are about to miss out but it's admirable that you were willing.

@Johnny Kang I think when you are willing to be generous with people it comes back to you. Good for you. I wish more of these stories were being told. People need to hear about how we are still able to come together and support each other when things get rough. Everyone isn't out there trying to sell hand sanitizer for $50 a bottle.

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Erin Dorsey RobinsonPro Member
OP
Real Estate Agent · Cleveland, OH · Member since 2020 · 280 posts · 365 votes
6y
@Ray Johnson Lol! I hear you. I think property management companies definitely don't stay in business by calling property owners to plead the cases of the tenants. If you don't mind me asking, what kinds of properties do you own?
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Patrick M.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
6y
Rent is not a sin, so there is no need to forgive.
If you have a tenant who is struggling because of Covid-19 then by all means let them pay what they can and amortize the difference over the remaining months of the lease or when their unemployment kicks in.
I am currently doing my part by keeping my hardware store, Home Depot and shops active fulfilling my orders. I also employed a sheetrock contractor, painting company, cabinet designer and maker and siding contractor over the last 2 weeks when no one else would let them near their homes. Further, I have a new set of Speed Queens coming next week as a little gift to my tenants (and to me ;) )... Made in the USA.
Those are some of the wonderful things my rent goes to.
I have great tenants and I am a great landlord. Not collecting rent does not change that dynamic nor does that dynamic justify not collecting rent.
If it makes you feel good then I would suggest you change your occupation. I have a very fulfilling and meaningful W-2, it makes me feel very good to help people in my job.
But right now it feels really, really good to realize that all of that work that went into screening is paying off. Receiving that 100% rent makes me feel really, really good that I am still funding my children's current education and setting aside the 529 $ each month. And it is going to feel really, really good when I can jump on the first flight out for a trip with the family.
7 Reply
Corey Hawkinson
Rental Property Investor · Bloomington, MN · Member since 2019 · 404 posts · 542 votes
6y
@Erin Dorsey Robinson when this started I messaged my tenants (only 7 “doors”) to open the door for a conversation if they were impacted. So far, only 1 tenant was impacted. We agreed to cut the rent in half for April and discuss again going forward. She has been a tenant for 2 years and has been an ideal tenant. I will happily take $400 instead of $800 for a short period in this case.
5 Reply
John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
6y
We still have 4 tenants that have not paid rent. Two of them we will probably get eventually. The other two are inherited tenants of properties that we purchased during Covid. So we have never received rent from them. One of them "went dark" and I've had no responses from inquiries. They're on month to month and will be receiving notice to vacate if they don't pay it. (it's only $400.00 per month) I think tenants have seen enough misleading news reports to think they just don't have to pay during this event. Not here in Georgia. We're requiring all our tenants to pay rent but told some of them we wouldn't charge late fees. We did get two payments about 3 weeks into the month. This lack of rent income has put a big pinch on us as it's our primary income source. We've cut way back on expenditures and are making it.
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Erin Dorsey RobinsonPro Member
OP
Real Estate Agent · Cleveland, OH · Member since 2020 · 280 posts · 365 votes
6y
@Corey Hawkinson sounds very reasonable to me. I think taking care of people makes good business sense in a lot of cases.
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Erin Dorsey RobinsonPro Member
OP
Real Estate Agent · Cleveland, OH · Member since 2020 · 280 posts · 365 votes
6y
@John Teachout oh no. That's rough. I guess half is better than none but still very difficult to take a 50% pay cut. I wish you the best with collecting your rents and navigating this situation. Hopefully GA opening up will ease the pressure on everyone there.
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John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
6y
I'm wondering what everyone did with their stimulus payment? And large unemployment checks?
0 Reply
Erin Dorsey RobinsonPro Member
OP
Real Estate Agent · Cleveland, OH · Member since 2020 · 280 posts · 365 votes
6y
@John Teachout That would make for an interesting poll. I suspect that while the amounts are greater than normal, "large" is a relative term when it comes to the unemployment checks. Here in Ohio a lot of people are still waiting to get them and it's been ~6 weeks. So with the daycare facilities closed and people having to find ways to work to make ends meet I wouldn't be surprised if some of the money is going towards private childcare. My babysitter costs $15-20 per hour as opposed to $55/day for daycare so you can do the math. Everyone's situation is different though, so who's to say?

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2 Reply
Albert Hasson
Investor · Paradise Valley, AZ · Member since 2012 · 366 posts · 214 votes
6y
Just had one tenant, a flight attendant, ask for reduced rent for a couple months. We knocked $300 off of the rent ( normally $1200 monthly) for 2 months. Didn’t really think twice about it, it was the right thing to do.
5 Reply
Fernan Nava
Rental Property Investor · Barstow, CA · Member since 2015 · 131 posts · 102 votes
6y
Forgive me if I sound like a jackass, but what in the world does generosity has to do with business? If you want to help your tenant or someone else tenant or anybody else and you have the means then by all means do so if is the dictate of your character. Just keep in mind that to have the means to help someone you must have a productive business and giving away your product is not gonna do it.
0 Reply
Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y
Fwiw i have not recd my “stimulus” check.... and i know many others who also have not recd. so i would not automatically assume everyone got them
2 Reply
Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
6y
ALL of our tenants are still working & our big NNN commercial tenant text me that he has enough in reserves to take a sabbatical & will keep paying.
Then you have this one ....
0 Reply
Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
6y
When my local government feels generous enough to forgive my property taxes , water bill and front footage assessment , I may think about it .
0 Reply
John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
6y
When I go to the grocery store and they say, just pay for one of the loaves of bread and 2 of the bananas and we'll let the rest slide. And then I go to home depot and they say you have 6 sheets of plywood and 2 gallons of paint, just pay for 4 sheets and one gallon and we'll call it good.
Yeah, when that happens, then I'll tell my tenants they can just pay part of the rent.
2 Reply
Mitchlyn D.
Rental Property Investor · Jacksonville, FL · Member since 2015 · 343 posts · 142 votes
6y
@Erin Dorsey Robinson 7/8 Tenants made all there payment. Still waiting on the last tenant to get her unemployment. I just worked with each tenant on an individual basis.
3 Reply
Jon Collins
Investor · Saint Louis, MO · Member since 2015 · 108 posts · 31 votes
6y
Most Landlords can't afford to just say "hey, don't worry about". But I know there are some who can. Me however I am not in that position. I have only one tenant that has not paid. However she has not lost her job. She claims she lost her online bank card. Which to me makes no sense as far as her paying her rent. Practically every month she has some kind of excuse. Right now I'm just waiting for when I can evict her. I'm going to get the ball rolling when i can.
1 Reply
Ray Johnson
Irvine, CA · Member since 2016 · 545 posts · 614 votes
6y
@Erin Dorsey Robinson I own SFR's, and Condo's in Class A, and Class B neighborhoods in major metropolitan areas. Washington DC., Orange County, CA., and Los Angeles.
1 Reply
Amanda Sontag
Rental Property Investor · Kansas City, MO · Member since 2019 · 12 posts · 17 votes
6y
I've had one of my tenants since 2012 and he's been the perfect tenant the whole time, so when he called a week before April rent was due and said he couldn't make it, I cut both April & May rent in half, and said we can come up with a payment plan for June if necessary. He's a general contractor and while he's allowed to work, people have been cancelling jobs. He's been good to me for 8 years and I've made quite a bit of money from him, so giving him 1 month rent back is a pretty small way for me to reciprocate, but makes a huge difference to him. My other property is managed by a PM and the tenant has only been there since Oct 2019 so I'd expect a repayment plan be put in place if they fell behind. My thought is you can't evict in OR right now, so it doesn't make sense to be insensitive, adding stress to the tenant, and sour the relationship trying to get money they don't have.
6 Reply
Rob K.
Encinitas, CA · Member since 2011 · 192 posts · 252 votes
6y
I have some tenants where they all work in the restaurant industry, were laid off, and promptly filed but still have not received unemployment from an overwhelmed government system. I lowered their rent for the next three months so that they are effectively getting one free month of rent over this period.
2 Reply

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