May 1 and rents are in! What is your experience?

General Landlording & Rental Properties
6yFollow

May 1 and rents are in! What is your experience?

Tamar HermesPro Member
Real Estate Coach · Austin, TX · Member since 2019 · 84 posts · 28 votes

It's May 1, and I wasn't sure exactly how the rents would all shakedown. All of my passive investments, Airbnb and multifamily, are hanging in very well.  All my other tenants paid.  I do have one that is out of work and decided to move next month. It worked out because I was planning to sell that property anyway.  Thank goodness I have honorable tenants. This property is in Los Angeles, a big pro-tenant haven.  Had they decided to stay, I could not have done much about it.

What have you all been experiencing?

Podcast Guest on Show Is Financial Fear Stopping You from Living the Life You Dream Of?
10Reply
552 views

Most Popular Reply

Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
6y
Originally posted by @John Teachout:
Originally posted by @Jim K.:

I haven't received a cent in rent yet. I anticipate I'll get most it of this coming week.

 How were your April rents? Did you get all of those?

Yes, by -- I think -- the 9th, John. May not be as fortunate this month. We'll see how this month goes, and after all, this is why we laid in hard reserves.

Gonna take a lot more than COVID-19 and tenants in genuine financial distress to put us on our knees.

7Reply
See this reply in the discussion

146 Replies

Jump to latestLatest
  • Daniel McNulty
    Financial Advisor · Indianapolis, IN · Member since 2018 · 294 posts · 165 votes
    6y

    100% payment for the month of May. I cannot stress the importance of a thoughtful financial screening of your tenants. A few simple rules of thumb can save you from lots of headaches. 

    1Reply
  • Roberto Michienzi
    Member since 2019 · 4 posts · 0 votes
    6y

    @Jim K. Please keep us posted

    0Reply
  • Roberto Michienzi
    Member since 2019 · 4 posts · 0 votes
    6y

    @Theresa Harris Please update your profile Teresa so we know what part of the US your experience is coming from

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y
    Originally posted by @Roberto Michienzi:

    @Theresa Harris Please update your profile Teresa so we know what part of the US your experience is coming from

     I'm in Canada.

    0Reply
  • Julie MarquezPro Member
    Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
    6y

    @Tamar Hermes I have 19 units in Skagit County, mostly apartments and some houses. This has been our best month in a long time. I checked the drop box on Sunday morning and everyone's rent was in there. 

    I personally reached out to everyone in March just to check in and open communication, in April I had two pandemic related inquiries and they ended up paying, and now everyone seems fine for May.

    1Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    Just this morning, (May 4th) I received the last of April's rent. Whew!! I was really concerned. Some of the people that paid the April rent late, paid May rent with it. So we've received 6 May payments so far and have 8 unpaid but some pay at different times so May will be another nail biter regarding who pays and when. We're not charging anyone late fees for April/May.

    0Reply
  • Owen DashnerPro Member
    Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
    6y

    About 30% of my 120 units are late as of today, plus several partial pays.

    0Reply
  • Tiffany Drahonovsky
    Investor Friendly Agent · Milwaukee, WI · Member since 2019 · 55 posts · 37 votes
    6y

    I have one unit and last month I reached out on 4/4 to inform tenant that late fees would be assessed if rent was not received by midnight on 4/5. There were some claims of covid, but she came up with the rent to not have to pay late fees. Now, I learned late fees are also a moratorium. 

    My issue is she is on disability income and also this month, many people have also been paid that stimulus. I texted tenant today and stated that I would be driving by the property tomorrow and was happy to pick up the rent. Also informed her that since she has not communicated to me prior to 5/1 any inability to pay rent, related to COVID, that I would need that validated in writing if that is the case... but believed she was well as her income is SSID and she's likely to have received her stimulus this month. 

    I am hoping the proactive reach out and request for documentation allows rent to be collected tomorrow. 

    0Reply
  • Abraham C.
    Rental Property Investor · Los Angeles, CA · Member since 2018 · 3 posts · 1 vote
    6y

    I received payment installments for April. For the month of May looks to be the same. About 80% of the rent but anticipate they will pay the full amount this month. Not sure if the tenant is still working or might have lost their job. 

    0Reply
  • Daniel Haberkost
    Rental Property Investor · Colorado Springs, CO · Member since 2018 · 682 posts · 729 votes
    6y

    @Tamar Hermes 6/6 tenants paid- one hadn't paid April but managed to pay Apri/May and late fees so that was positive. I believe he was able to get unemployment going, with all of the government they really shouldn't have an issue. 

    0Reply
  • Victor Martinez
    Rental Property Investor · Bronx, NY · Member since 2019 · 1 post · 0 votes
    6y

    collected 100% for this month

    0Reply
  • Linda Garcia
    Real Estate Professional · Snohomish, WA · Member since 2016 · 13 posts · 2 votes
    6y

    @Tamar Hermes 99% even though I said “any time this month”!

    0Reply
  • Shannon M Kraft
    Rental Property Investor · Charlotte, NC · Member since 2019 · 4 posts · 1 vote
    6y

    Direct deposit for Section 8 came in like clockwork.  Expecting AirBNB to pay out less than 100% but still positive cashflow.

    0Reply
  • Chuck Kohout
    Hackensack, NJ · Member since 2020 · 18 posts · 5 votes
    6y

    @Tamar Hermes

    I’m at 65% but I’m in North Jersey.

    Everybody I know with a networking group tells me everybody’s paying on time then quietly tells me they’re going Under off the record. So I’d say we’re doing pretty good 👍

    0Reply
  • Maya Roberts
    Rental Property Investor · Sunnyvale, CA · Member since 2019 · 60 posts · 40 votes
    6y

    All rents are in!  Phew.

    Although we took a proactive approach by calling our tenants.  Not just before rent was due but throughout March and April to see how they are doing. 

    Luckily we have good tenants although we were only concerned with one rental since they work in the restaurant industry.  In fact, their store isn't far from us so we have been ordering take-out weekly from them.  She's a manager there which prevented her from being let go like a lot of the other staff.

    0Reply
  • Kirsten M.
    Realtor · Albuquerque, NM · Member since 2017 · 121 posts · 68 votes
    6y

    I received all 8 payments in April. I'm still waiting on 1 tenant to pay for May, but I'm hopeful.

    0Reply
  • Jingru Sui
    Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes
    6y

    My own properties are ok. all paid. 1/2 that I manage for my friend paid. The other one always late even before COVID do I assume will be late again this month. 24/36 multifamily units that I manage are paid online so far, I think most of the rest will send check which I will go to the office and check this Thursday. Overall better than I think!  

    I have a question tho. What do you do with the people that stop paying even before COVID. you'd be sure they will take advantage to not pay during COVID as well. Anything we can do with those tenant??

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    6y
    Originally posted by @Shannon M Kraft:

    Direct deposit for Section 8 came in like clockwork.  Expecting AirBNB to pay out less than 100% but still positive cashflow.

    Where is your AirBnB located? Who are you renting to?

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    0Reply
  • Shannon M Kraft
    Rental Property Investor · Charlotte, NC · Member since 2019 · 4 posts · 1 vote
    6y

    @mindy Jensen

    AirBNB is in Charlotte, NC. Usually a big travel spot. I reduced prices slightly and marketed to longer term short term stays (really close to medical facilities).

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    6y
    Originally posted by @Jingru Sui:

    My own properties are ok. all paid. 1/2 that I manage for my friend paid. The other one always late even before COVID do I assume will be late again this month. 24/36 multifamily units that I manage are paid online so far, I think most of the rest will send check which I will go to the office and check this Thursday. Overall better than I think!  

    I have a question tho. What do you do with the people that stop paying even before COVID. you'd be sure they will take advantage to not pay during COVID as well. Anything we can do with those tenant??

    If they had not been paying before COVID eviction moratoriums, you should have filed all the paperwork in accordance with your state's landlord tenant laws, giving them the pay or quit notice, and filing for eviction if they do not pay.

    The courts will be overwhelmed with evictions once they reopen, something I do not believe tenants who have the ability to pay are considering. 

    While I do not have a crystal ball, I do believe the courts will look more leniently on those who lost their jobs, and be more strict with those who were not paying before this all went down. Documentation is your friend here. Document EVERYTHING.

    Will you recover the lost rent? Probably not. 

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    1Reply
  • Jingru Sui
    Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes
    6y
    Originally posted by @Mindy Jensen:
    Originally posted by @Jingru Sui:

    My own properties are ok. all paid. 1/2 that I manage for my friend paid. The other one always late even before COVID do I assume will be late again this month. 24/36 multifamily units that I manage are paid online so far, I think most of the rest will send check which I will go to the office and check this Thursday. Overall better than I think!  

    I have a question tho. What do you do with the people that stop paying even before COVID. you'd be sure they will take advantage to not pay during COVID as well. Anything we can do with those tenant??

    If they had not been paying before COVID eviction moratoriums, you should have filed all the paperwork in accordance with your state's landlord tenant laws, giving them the pay or quit notice, and filing for eviction if they do not pay.

    The courts will be overwhelmed with evictions once they reopen, something I do not believe tenants who have the ability to pay are considering. 

    While I do not have a crystal ball, I do believe the courts will look more leniently on those who lost their jobs, and be more strict with those who were not paying before this all went down. Documentation is your friend here. Document EVERYTHING.

    Will you recover the lost rent? Probably not. 

    Thanks Mindy! 

    1Reply
  • Matthew B.
    Investor · Howey in the Hills, FL · Member since 2013 · 376 posts · 114 votes
    6y

    100% rents collected, even from the tenants in the service industries. I love my tenants!

    0Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y
    Originally posted by @Jingru Sui:

    My own properties are ok. all paid. 1/2 that I manage for my friend paid. The other one always late even before COVID do I assume will be late again this month. 24/36 multifamily units that I manage are paid online so far, I think most of the rest will send check which I will go to the office and check this Thursday. Overall better than I think!  

    I have a question tho. What do you do with the people that stop paying even before COVID. you'd be sure they will take advantage to not pay during COVID as well. Anything we can do with those tenant??

    If these properties in question are in Georgia, proceed as usual. The state of Georgia has not stopped evictions or any other landlord actions against tenants. Some courts may be closed but many places allow filing evictions online which is what I would do after having a conversation with the tenant (via letter) indicating that there are no free rides during the covid event and if they don't make arrangements to pay, they'll be evicted and a judgement will be sought in court which will follow them forever until they pay it.

    1Reply
  • Jennifer T.Pro Member
    Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
    6y

    I have 6 tenants, though one is on financial assistance with a charity (not S8).  All of April rent was paid, except for a trailing $50 short from one tenant which isn't unusual for her.  She was the first person I was expecting to use COVID-19 as an excuse, so I'm glad it's just the 50 bucks.

    Felt good going into May and then ((screeching brakes)).  You all might enjoy this story.  While I normally don't pick up rent, just during the "Stay At Home" order, I've made an exception on that for one tenant that does not have a car.  She usually has her rent on Sat.  I texted her Fri. and offered to come pick it up like I did last month.  But now she tells me she doesn't have the money because she lost her job.  Nothing.  Not even a partial payment.  And no notice whatsoever before I got in touch with her.

    I tell her that I can work with her, but we need to come up with a plan so I'm going to ask her some questions.  Despite "supposedly" losing her job which I can only guess "supposedly" happened at least two weeks ago...she STILL hadn't filed for unemployment.  Because she doesn't know "where to go or how to do that".  I actually texted her back the web address.  Oh, you know, that I found in a 20-second Google search.  That's a lot of "fishy" going on.

    The next day, I posted a Pay or Quit notice that gave her until May 17th.  The "Stay At Home" order in our state expires on 5/16.  So I assume the first day evictions can be filed will be 5/18.  Hopefully, maybe not, but that's what I was going with when I chose that date.

    I followed up with an e-mail that, while normally Pay or Quit notices are only 5 days, I was extending her some extra time to get rolling on filing for unemployment.  I also told her I could be even more flexible than 5/18, but we have to have a plan in place.

    She texted me back that, since I wasn't being considerate of the pandemic, I could pick up the rent on Monday.  LMAO.  And I picked it up earlier today, paid in full.  How wonderful she had a magical visit from her fairy godmother over the weekend, so that she could go from paying $0 of her rent to paying it in full.

    NOW I am 100% for the tenants that have their rent due on the 1st.  I also have three who have their rent due on the 15th so, we'll see, but I'm only a little worried about one of them.

    0Reply
  • Joe Moore
    Rental Property Investor · Los Angeles, CA · Member since 2010 · 804 posts · 230 votes
    6y

    Business as usual, except some are paying earlier than usual.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free