Are You Nervous About Collecting Rent This Month

General Landlording & Rental Properties
6yFollow

Are You Nervous About Collecting Rent This Month

Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes

Last month (March) most people worked most of the month so when April 1st rent came due rent should have been collected for the most part.  This month at least in my state people have been unemployed/furloughed for all of April.  I’ve already collected from a few tenants early. How do think rent collection will be this month?

0Reply
24 views

Most Popular Reply

Patrick M.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
6y

I am not nervous about May. I am petrified of November and December.

There is a constant drum beat of disregard to the rental contract. The idea that people should not pay rent. That landlords can absorb the loss... 

The bottom is going to fall out of this economy. Right now we are all operating on the assumption that we turned the switch off and we will turn it back on... and maybe it will be slow going, but it will start up again. I don't believe that and it will be compounded when government cant continue to print money to solve all of the problems.

This winter is going to be a b****!

4Reply
See this reply in the discussion

14 Replies

Jump to latestLatest
  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    Hey Ken,

    I was like you - thinking May 1st would be worse for tenants - but we've stayed in communication with them over the past few weeks and as of this morning, we have collected over 80% of rent. 

    We have about 5% of tenants who are on a payment plan, and are paying as agreed. 

    [email protected]832-770-7090
    1Reply
  • Todd SnyderPro Member
    Rental Property Investor · Wooster, OH · Member since 2018 · 44 posts · 18 votes
    6y

    We have plans in place if someone struggles to pay rent. We also have a healthy cash reserve for each property just in case. I'm sure most will use their stimulus checks for rent this month.

    1Reply
  • Patrick M.
    Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    I am not nervous about May. I am petrified of November and December.

    There is a constant drum beat of disregard to the rental contract. The idea that people should not pay rent. That landlords can absorb the loss... 

    The bottom is going to fall out of this economy. Right now we are all operating on the assumption that we turned the switch off and we will turn it back on... and maybe it will be slow going, but it will start up again. I don't believe that and it will be compounded when government cant continue to print money to solve all of the problems.

    This winter is going to be a b****!

    4Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    There are things in the world you have no control over, tenants are one of those things.  If you've stayed in communication, you should have some idea if they are having problems or not.  They've had time to get their ducks in a row and apply for, and in some instance get, assistance if they need it.  You've also had time to plan what happens if you don't get May's rent.  This is going to be a problem for several months.

    So far only one of my tenants has contacted me to say they are applying for assistance.

    2Reply
  • Kenneth GarrettPro Member
    OP
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Cameron Tope

    @Todd Snyder

    That great I’m glad things are going well.  I was able to collect 100% last month.  Some were late, but I got paid.  I have a healthy reserve so things should be ok.  Looks like our government leaders are loosing the strings on people going back to work.  Let’s keep our fingers crossed it goes well.

    @Patrick M.

    I hear you.  The no eviction laws are not helping anyone either.  Tenants should pay something if there collecting unemployment.  Just to stiff the landlord is BS.

    0Reply
  • Kenneth GarrettPro Member
    OP
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Theresa Harris

    I agree none of us could have predicted this.   Being prepared with reserves is critical.  How many BP posts have there been about reserves: 3, 6 months or more.  Communicating with tenants is critical.  

    1Reply
  • Patrick M.
    Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    @Kenneth Garrett it is. And it is going to get louder and louder as the election cycle begins and the whores start looking for votes.

    I am hoarding cash and getting ready for 100% no rent in November. Not vacancy- But "no rent." I have screened my tenants, but I am worried about this new, popular sentiment which is being fomented from government and the media.

    This fall is going to be a mother! We are going to lose a lot of comrades.

    1Reply
  • Corey Hawkinson
    Rental Property Investor · Bloomington, MN · Member since 2019 · 404 posts · 542 votes
    6y

    @Kenneth Garrett I guess I’m lucky. I have 7 “doors” and I expect to collect $1,250 more in May compared to April. It’ll be a combination of one tenant who was able to find employment after being laid off (we had given her a discount in April) and we were also able to find another tenant for a property that we rent out per bedroom. I’d love to offer advice, but I was also just lucky to some degree. I did communicate and I have found good tenants though.

    1Reply
  • Kenneth GarrettPro Member
    OP
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Patrick M.

    No doubt some of the small landlords may get crushed through this.  There was no help for the small LL.

    0Reply
  • Kenneth GarrettPro Member
    OP
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Corey Hawkinson

    I’m glad you are doing well.  This is definitely a time when your screening process will bring benefits to you.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    Most layoffs occurred in March or very early April. Everyone should have started receiving unemployment by now, along with their stimulus check. This means they have no excuse now and I'm back to business as normal.

    Unemployment increased $600 per week.

    Stimulus check is $1,200 per adult and $500 per child.

    Consider a family of four with both adults working minimum wage jobs. The EXTRA unemployment would add $4,800 ($600 per week per adult) and they get $3,300 for stimulus ($1,200 x 2 adults and $500 x 2 kids). Just the extra earned from these two programs is 1.5x more than the average middle-income earner would normally earn. For tenants making $40,000 a year, this is like winning the lottery.

    I'm not forgiving late fees or waiving notices and evictions unless the tenant can prove hardship.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    3Reply
  • Patrick M.
    Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    WSJ- Rent is Due Today, but Many Tenants Can’t—or Won’t—Pay

    About 40 states have enacted a full or partial statewide moratorium on evictions, according to Emily Benfer, director of Columbia Law School’s Health Justice Advocacy Clinic. In two states—Idaho and Kansas—the moratoria are set to expire May 1, and another 10 statewide moratoria are set to expire by the end of May, she said.

    Some Democrats in the House of Representatives, as well as in state and local legislatures, have called for “canceling rent” in solidarity with the rent strike movement.

    “We need to make sure that we’re taking very clear federal action to suspend both mortgage and rent payments in this time,” New York Rep. Alexandria Ocasio-Cortez said during a live event on Facebook this week.

    0Reply
  • Kenneth GarrettPro Member
    OP
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Nathan Gesner

    Good points.  It seems most tenants who were laid off or furloughed are collecting unemployment and in some cases are making more with the stimulus money.  I like your approach.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y
    Originally posted by @Patrick M.:

    WSJ- Rent is Due Today, but Many Tenants Can’t—or Won’t—Pay
    About 40 states have enacted a full or partial statewide moratorium on evictions, according to Emily Benfer, director of Columbia Law School’s Health Justice Advocacy Clinic. In two states—Idaho and Kansas—the moratoria are set to expire May 1, and another 10 statewide moratoria are set to expire by the end of May, she said.

    Some Democrats in the House of Representatives, as well as in state and local legislatures, have called for “canceling rent” in solidarity with the rent strike movement.

    “We need to make sure that we’re taking very clear federal action to suspend both mortgage and rent payments in this time,” New York Rep. Alexandria Ocasio-Cortez said during a live event on Facebook this week.

    A moratorium on evictions doesn't mean rent is not owed; it simply delays the eviction. The tenant will eventually have to pay and they can still accrue late fees or other penalties.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free