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.
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.
@Tamar Hermes Those unemployment checks are bigger than people’s normal paychecks! Their stimulus checks are helping a bit also. I have one tenant that normally pays super late and even they paid yesterday, right on time.
Unemployment may really only be more than for lower income folks. Also, many many folks have not yet recd any unemployment nor the stimulus check - the wheels of govt turn slowly.
@John Collins - yes, it is harder to fill units on May, but it's easier than it was during April, as states reopen and we see an increase in new inquiries when compared to April. To your questions re our occupancy, they range from one property to another, but on average it's around 94%. We provide a 2-3% discount on rents only for early birds, and maintained new leases at 0% rent increases (not lower rents), and it seems to be working well for us.
I know people out there are calling for a big time recession, but here in OKC even with oil down, I'm just not seeing it. We've collected full rent for all of our 19 units around Oklahoma every month, even May. Our property management team is very responsive to our residents' needs.
Keep in mind this wasn't going to be an overnight recession. First there is a sell off in a stock market, then a surge back up, then a slow grind down as people realize things really aren't going to back to normal perfectly easy. Right now the stock market hasn't reflected reality at all, you are just slowly seeing companies ease into layoffs.
I always thought April, May, June... even July would be fine. The average worker will have some reserves and bail out money. It's Aug-Dec when we will see the height of housing issues for tenants and owners.
@John Collins
I believe you are right, Plus Tax Returns....I see New Layoff & New Bankruptcy filings news every day on WSJ...in the tune of 10-15% lay off...
I am thankful that I got 95% of the May rents but I will need to prepare for Aug onward!
Currently 4/5 after 5/5 in April - ALL are SFH in B areas around military last one my PM in Colorado usually sends after the 15th , so not to worried right now , just building my reserves in case future vacancy
I have 3 sfh, 2 paid on the 1st the third we were waiting on unemployment which was delayed in KY however they texted me today to let me know they got their backpay and paid, all 3 paid on the first last month. Well see how the future holds however I'm not too worried about it for now with businesses opening back up this month and unemployment making up most of peoples losses who aren't working.
collected 145 of 155 so far in may ,other 10 working with payment plans.but everytime i think going to get back to slightly normal the governor does something.boy i wish our governor (in wis) was not a democract.but at least most of our tenants are working,either from home or at place of work.i feel for anybody in the left wing states of ny,calf,michigan ,washington.remember these people when it comes time to vote.they seem to not care about your vote.that is were i think all of us landlords should get together and hire a national lobbyist for landlords.because in our state ,only thing helping us out is the realtors lobbyist is strong and they are helping us out,because they donot want to see prices come falling down.
I’ve collected 7 out of my 7 units. All paid before the 3rd of this month. So far so good. I’m in California and it seems as if things could start getting better. A lot of retail opened back up. The same with warehouses. I think a slow opening is better than no opening
So far, both April and May, for my property management company (and the units that I own) have not been too bad. Out of around 1200 units, we only have maybe 5-7 that are taking advantage of the no eviction policy. Everyone else is making an attempt, but we've also been educating and counseling a lot of tenants on what bills to pay and what to put off and where to get some assistance. We've also made more collection calls in the past 2 months than we have the entire previous year combined.
We are all paid up for May but for sure have 1 tenant who is going to struggle with June, July and August. He is an international student/educator. The school is not providing work over the summer and him nor his wife are, legally, allowed to perform any other work
In my state, there's an automatic 9 day grace period, and many tenants in my class C/D rentals take advantage of that. So, on the 11th, I have in almost all of my 32 rents! One tenant whose boyfriend had left was shocked when I offered her cash for keys - she says she'll pay in full tomorrow, and I think she will. Another one who had been weaseling toward paying mid month even before coronavirus hit, says she'll pay by mid month, and I think she will. After this is all over, we'll lower the boom on her to get her back to paying by the 10th of the month. And another sent us proof of a request to make a bank transfer today - we'll see if it has arrived by tomorrow. Again, this same tenant had been having shaky finances before coronavirus hit - had a utility shut off for non-payment this winter. So really, no missed rent from coronavirus-related issues, just a few who are shaky for other reasons, but whom I have every reason to expect will pay up. So it's nowhere near as bad as I thought it could be.
I am SO thankful that we managed to finish an eviction and get out a horrible non-paying tenant just a few days before the courts closed and the eviction moratorium was imposed. We would have lost 6-8 months rent at least on that tenant, had we not gotten her out in time. One thing I've learned in a decade of doing this is to NEVER delay the paperwork on an eviction for non-payment, not for any reason. Express sympathy, explain that it's just paperwork, just a technicality, that no consequences will ensue if they can pay the rent in a few days as they have just promised, but that you just have to file the paperwork, for good record-keeping. But FILE THE PAPERWORK at the earliest possible moment, and stay on top of it. There are so many LLs across the country who are crying now, because the person who hasn't paid rent since December or January, who they could have gotten out in February or early March, now will sit in the unit for free probably until next Fall.
And yes, I have 3 vacancies, which I could have filled easily, but I'm insisting on a two month security deposit plus first month's rent, no exceptions (since the governor's decree means that someone can essentially not pay rent for the next 3 months at least, and will probably be extended), and I won't touch anyone with a history of a LL having filed against them for any reason, no matter what their "explanation". I'd rather have the unit sit empty, than risk a new tenant who comes in and doesn't pay rent. With the courts closed, and with the governor's "free rent for all" decrees, I'm not taking any risks.
Very grateful, my tenants both paid earlier than usual. Our family owned property, all section 8 is at about 90% collection, but not really hurting us as the tenants portion ranges from about $30-300 and the rest is subsidized.
And the one tenant who had cried hardship, when I stunned her yesterday by offering cash for keys, paid up in full today. She was shocked to realize that if she didn't pay the rent, she'd have to LEAVE (eventually).