So-anyone still paying rent?

General Landlording & Rental Properties
6yFollow

So-anyone still paying rent?

Meryl McElwain
Contractor · Chicago, IL · Member since 2017 · 102 posts · 181 votes

So I'm in Chicago. Two six flats. 8/12 tenants now not paying rent. I've been talking to other landlords and it's the same story. I have two buddies with 60 units between them. They're are mostly 1 bedrooms. Rent is under 1500 a unit which I think is contributing to it. 38/60 didn't pay July rent. Are we alone here or has everyone just stopped paying rent?

1Reply
175 views

Most Popular Reply

Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y

@Meryl McElwain it strikes me as a regional malaise.............some people are unfortunately being trained to believe that actions do not have consequences. Seems many big cities where irresponsible politicians and activists have been coaching and encouraging bad behavior, LL will have to mitigate risk in those areas with tighter screening.

10Reply
See this reply in the discussion

44 Replies

Jump to latestLatest
  • Todd Kelly
    Rental Property Investor · Redondo Beach, CA · Member since 2017 · 9 posts · 2 votes
    6y

    We’ve been really blessed and extremely lucky to get payments for March, April, May, June and now July from 5 of our 6 tenants. Our 6th tenant should be able to pay late this week, and then we’ll be at 100%. One of the tenants paid in cash, half on the 1st and the other half on the 15th, the other tenants handed me money orders or checks, and we had our 6th tenant pay weekly through Zelle so he wouldn’t get behind too far. I still hold my breath on the 1st of the month til all the rents are received, but I collect it personally and check to see how all the tenants are coping.

    0Reply
  • Jessica Jean
    Chicago · Member since 2019 · 2 posts · 2 votes
    6y

    @Meryl McElwain I've had my tenants in logan square and Ukranjan Village pay on time throughout the pandemic. Where are your properties located? Are they 1 or 2 bedroom units?

    1Reply
  • Meryl McElwain
    OP
    Contractor · Chicago, IL · Member since 2017 · 102 posts · 181 votes
    6y

    @Jessica Jean

    Logan Square or west bucktown. Are your tenants all still working or getting unemployment? That's what I'm kind of trying to figure out here. Federal unemployment is going to dry up on the 31st. I feel like my people are hoarding cash in anticipation of this. Which I can understand. But what Im thinking is once federal unemployment stops people will stop paying all around. They cant make it on state unemployment. So August or September will begin real serious deficiencies.

    I've asked. I've basically been told that. If were going to choose between rent and food it's going to be food. I have a tom of 1099s though.

    If unemployment drops to 800 month no one is going to choose to pay rent.

    1Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    6y

    @Meryl McElwain I am sorry to hear about all the issues you are having. So far, I haven't missed any payments out of the 58 apartments. My buildings are all near western suburbs in Berwyn, Lyons and Cicero. 

    0Reply
  • Meryl McElwain
    OP
    Contractor · Chicago, IL · Member since 2017 · 102 posts · 181 votes
    6y

    @John Warren

    What is the average rent on these?

    0Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    6y

    @Meryl McElwain most of my tenants are in the $900 to $1250 range. 

    0Reply
  • Mark Plesha
    Realtor · Highland, IN · Member since 2015 · 47 posts · 29 votes
    6y

    @Meryl McElwain Are they not paying anything at all, or have you had the conversation that rent is still due every month, but if they can pay a % right now then that is better than nothing. I think it would be helpful to sit down with them and explain that your mortgage is still due, the taxes and maintenance bills still need to be paid, etc. Maybe they can be put on a plan that when they become employed again they can start to make up for lost rent with an increase to the prior agreed upon rent. I'm sorry you have to deal with this, let me know if there is anything I can do.

    0Reply
  • Ryan Hayhurst
    Rental Property Investor · Oklahoma City, OK · Member since 2020 · 24 posts · 16 votes
    6y

    I only have one 11 unit MF in OKC. 10 units occupied with 1 under renovation. During the closing process, there was one tenant that didn’t pay for a month claim Covid hardship and left before I took over. That’s the 1 vacant unit once and it is now being renovated. The remaining 10 tenants I inherited paid on time in July.

    From what I have read and others have said this divide between high and low collection ‘% seems to be directly correlated to the local govt’s hostility towards landlords and the misconception that all landlords are “rich”. The more they vilify those that provide housing and tell their citizens it is ok to skip rent, the more the average person will think it’s ok and no negative consequences (which there will be). I’m in OK and we are a very pro landlord state and I have not heard many people skipping rent, collections remain relatively normal.

    In many ways unfortunately, it seems like it’s the big “blue” cities like in CA, Chicago, NYC, etc that are having the collection problems and generally speaking the smaller “red” cities seems to be doing better.

    0Reply
  • Christian Nachtrieb
    Rental Property Investor · Medford, MA · Member since 2016 · 288 posts · 171 votes
    6y

    Unique situation here in Boston.

    This isn't a humble brag or anything but just wanted to share for the sake of transparency so everyone can have a clear picture of various areas. Small time landlord, own two small condos in Dorchester, one's a 1 bedroom the other a 3 bedroom, so four tenants in total. All have paid me consistently since the pandemic / lockdown began. Not only that, the 1BR renter is living on the Cape to be away from the city and is STILL paying me the 1st of every month. 

    I know this isn't the norm, however I do have some inkling that this luck is at least partially due to my rigorous and patient screening process. They are great people, communicate well, and background checks & credit all came back excellent and clean. 

    1Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    6y

    Ankeny, Iowa. B class duplexes with rents between $1,150 and $1,500 a month. Zero problems. We did have numerous tenants actually buy houses and give notice this summer. But no problems at all renting them out again, with higher rents than I was getting from prior tenants. I wish I had another dozen of the 2 bed 1 baths at $1,000-1,150 a month. I could have rented them all within 2 weeks. 1 unit rented sight unseen by tenant. Posted the listing with pics, and they said; "we want to apply". 

    0Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    6y

    I'm curious what all these non-paying tenants are going to do once you evict them. And no, I don't believe everybody is choosing "food over rent". That's garbage. There has been more than enough government help to have most people pay their rent. In Illinois, unemployment insurance maxes at $471 per week. And if they qualified for a $1,500 a month unit, they should be making good enough money to get the max unemployment, or close to it. 

    Let's add everything up. Per week: $471 unemployment, $600 unemployment "bonus". One time stimulus of $1,200, plus $500 per child. Now, that is $1,071 per week, or $4,284 per month unemployment. There's been about 14 weeks of payouts since the beginning of April. That is $15k per person, almost $30k for a couple, plus the stimulus payment. 

    Yes, there are exceptions. But that is a huge percentage of tenants not paying rent. Well, the day of reckoning is on the horizon. Fire up that computer and write up those eviction notices. Those tenants that have not attempted to pay some rent, attempted to work out a deal with the landlord, attempted to work the system, should feel your wrath. 

    3Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    6y

    @Meryl McElwain - I am in Chicago in one building 5 of 7 tenants lost their job.  Not a single late payment.  My other building 3 of 5 lost their job, not a single late payment.  Nobody has had issues with the unemployment system.

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    0Reply
  • Meryl McElwain
    OP
    Contractor · Chicago, IL · Member since 2017 · 102 posts · 181 votes
    6y

    @Anthony Wick

    I do not get it. Does anyone have a nonpayment story or is it really just me?

    Even my attorney friends are like "let them tell you that they're all being paid because that's not what's happening in our offices.

    I have one colleague sitting with 432 evictions ready to file. 432. That's insane.

    0Reply
  • Eric M.
    Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Meryl McElwain:

    So I'm in Chicago. Two six flats. 8/12 tenants now not paying rent. I've been talking to other landlords and it's the same story. I have two buddies with 60 units between them. They're are mostly 1 bedrooms. Rent is under 1500 a unit which I think is contributing to it. 38/60 didn't pay July rent. Are we alone here or has everyone just stopped paying rent?

     Last i heard was something like 91% are paying rent.

    0Reply
  • Baris Yuksel
    Investor · Chicago · Member since 2019 · 20 posts · 19 votes
    6y

    @Meryl McElwain I am sorry about your collection issues. As a Chicago investor I am a little luckier so far, collections have been about 95% but the thing that bothers me is the ones not paying are very aware that not much can be done... so we expect that they will be living for free for a long time before anything can be done about it. I have an acquired tenant back in Oct 2019, she promised to be out by Nov.  I filed her eviction in Dec, she signed agreement to be out by May in court and she is still enjoying the unit. next status check in August. God knows when Sheriff will pay her a visit after that court. 

    Bad tenants are and will be definitely taking advantage of the corrupt Cook county legal system. 

    You mentioned someone with 432 evictions waiting to file. Do you mind sharing the location(s) for these tenants? I have tenants all over the city. 

    0Reply
    • Jenny W.
      Renter · Member since 2025 · 2 posts · 0 votes
      7mo
      Imagine feeling entitled to someone else's money. Maybe you should get a job and hobby that doesn't harm human beings. You don't need to own dozens of properties you don't live in.


      Quote from @Baris Yuksel:

      @Meryl McElwain I am sorry about your collection issues. As a Chicago investor I am a little luckier so far, collections have been about 95% but the thing that bothers me is the ones not paying are very aware that not much can be done... so we expect that they will be living for free for a long time before anything can be done about it. I have an acquired tenant back in Oct 2019, she promised to be out by Nov.  I filed her eviction in Dec, she signed agreement to be out by May in court and she is still enjoying the unit. next status check in August. God knows when Sheriff will pay her a visit after that court. 

      Bad tenants are and will be definitely taking advantage of the corrupt Cook county legal system. 

      You mentioned someone with 432 evictions waiting to file. Do you mind sharing the location(s) for these tenants? I have tenants all over the city. 


      0Reply
  • Robin Cox
    Rental Property Investor · Hamilton, OH · Member since 2016 · 31 posts · 30 votes
    6y

    Oh My God. Just... What?? We are 9/9 with none late at all. And added 2 new tenants to freshly rehabbed homes July 1. All SFR. Here in Ohio, especially Butler county, the courts DO NOT PLAY. We are in a C class area and we sent out a SlyDial when this first started to advise tenants to please call if their families have been financially affected by COVID. Not one call. Unless you count the 2 that called to thank me for my concern. All are apparently essential workers and Ohio was pretty good with unemployment from what I hear, not that any of my tenants needed it. Yes, the courts were closed but as soon as they open the evictions will fly and the only question the judge asks is, "did you pay your rent?" He will listen to their excuses and say, "eviction granted. You have 7 days to leave." And it costs $149. (I only know because of my only inherited tenant)

    @Meryl McElwain I cannot imagine what your business is going through!  I hope when this is over you all can get together and start a class-action lawsuit against... the city? state? who? The powers that be are destroying your business.  What will they do when they have hundreds of people living on the street because they pampered them then kicked them in the teeth?  UURRGGHHG!!!!!  This is terrible. 

    0Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    Georgia is a landlord friendly state but we've still had some payment issues. I eventually expect to get all the rents owed. We're current with everyone through May, some haven't paid the full amount yet for June and several haven't paid anything for July. Yesterday I presented a tenant's home with a 60 day notice to vacate. (termination of month to month) and all of a sudden I started receiving texts and phone calls after not hearing anything for months. For all I knew they left the state. Supposedly their phone broke and they couldn't view emails/texts, etc. Told them that's no excuse as they still have the banking information to make deposits, I had given them business cards, etc. This was a recently inherited tenant and they haven't completed their "training" yet but we're getting there now. Overall, this virus has impacted the timing of payments but I think we'll get through it fine. I feel bad for those in very tenant friendly states.

    0Reply
  • Mark Franklin
    Glen Burnie, MD · Member since 2020 · 12 posts · 8 votes
    6y

    I'm very fortunate that my only tenant is active duty military. For those who don't know, in addition to their salary, military personnel also get a tax free stipend for housing expenses. The amount varies depending on rank and marital status.

    When I was stationed at Fort Meade, MD, (where my tenant is) I was receiving just over $2,400 per month for housing expenses, tax free.

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