Let's discuss the Heroes Act - Are you worried?
Property Manager · Lakewood, OH · Member since 2015 · 250 posts · 258 votes
So, like many of you, I recently heard about and read some of the Heroes Act legislation.
It's fantastic that the government is attempting to help everyone, but, honestly, am I the only one that's worried about this?
If rent goes to zero for 12 months, I would still be responsible for
-Water bills in buildings that aren't separately metered
-All repairs; roof, furnace, water heaters, appliances
-Landscaping and other services
-Fuel to and from properties
-Equipment maintenance
-Taxes and insurance for properties that aren't mortgaged
-Any legal fees
-Property management software fees
Am I looking at this wrong?
This is the most complicated insanely written piece of garbage with respect to handling the housing situation ever written. There is nothing written to prevent people from freeloading. With the stimulus checks and the boosted unemployment, the tenants that had any rights of complaining that they don't have enough to pay the rent are making more money than they ever did in their lives. If they want tenants to have free rent then the government should pay the landlords directly for the rent No documentation required, rather than pretend that forbearance is the solution.
Forbearance doesn't pay for the plumbers to auger out paper towels being used as toilet paper. There needs to be language that clearly requires "Proof" that tenants are not receiving enough income from the stimulus checks and boosted unemployment with comparison to their original job. There must be documentation requirements. To say that tenants are at risk of losing their housing, while simultaneously saying that tenants can not be evicted for not paying rent is insane.
If they are going to let tenants live for free in buildings that are owned and maintained by real people and not the government then they need to take away the stimulus checks, and the boosted unemployment and tell tenants that they can have one or the other, but not free rent, AND stimulus checks and an extra 600 per week, my God!
When all is said and done, the tenants that have saved up money freeloading for a year should have to pay the back-owed rent as a lump sum or have the judge stop the pain cycle immediately and give the landlord his unit back. The administration of this bill will cost a fortune and take months to implement. I can't imagine how a 1000 unit apartment building could survive without rents. Stop the cranes.
I'm not sure how you would shift to month to month leases except for new leases or expiring leases. I think it would be tough for an attorney to argue that you just decided for no particular reason to end the lease and by the way the tenant is behind on the rent. My strategy has been to communicate to all tenants what the government is doing to assist them mentioning the 600 extra per week they are getting and the stimulus checks for them, their significant others and children. Helping them check on their getpayment status, asking if they need help applying for or resolving unemployment issues and delays, and recommending for some that they apply under the gig status or self employment status for the unemployment. So far being proactive has helped me collect ALL rents from all tenants and they have been pretty cheerful and cooperative for my assistance. Letting them know proactively from the beginning what the government is doing and all of its programs to provide for lots of assistance to tenants. No pressure, just helping the tenant understand how much the government is doing financially and even mentioning that the stimulus checks are going to people regardless of whether they lost their job or are still working. As long as they know that you are AWARE of all the assistance they are receiving they are less likely to pretend they aren't getting all of this extra money. The unemployment is retroactive for all the missed weeks during the delays. One of my tenants got a 3600 check making up for many weeks of delayed unemployment with the 600 per week extra. At this time any pressure put on a tenant in a negative way will result in a complete halt to them paying you rent. Tenants need that caring personal touch right now. They can screw you so easily right now if they are pressured or fearful. Also you might mention to your tenant(s) that are behind, that the other tenants have all thankfully paid, or that several other tenants are behind depending on the situation and how it will spin things in the right direction to motivate that tenant to pay. The direct approach doesn't work as well as figuring out the right indirect approach. I have 12 units, 16 years. Is anyone else employing similar strategies?