Updated almost 5 years ago on . Most recent reply
14 Million Tenants Behind on Rent
An ugly headline, an even uglier reality. Rental Debt is estimated at $25 Billion (Source: Stout, a global investment bank/advisor). Housing subsidies included in Covid Relief Legislation will not come near resolving the financial burden placed on property owners/landlords during this crisis - nor is the court system equipped to handle the eviction tsunami in the making. We all know it. We all get it.
What matters now - more than ever - is beyond getting our ducks together. It's all about getting those ducks moving to storm the beach. Here's a starter menu of actionable items for investors to do now - to ensure your place at the start of the pack:
1. Evict now for lease violations. Violations other than for non-payment of rent are not covered by the moratorium. Get in before the herd...
2. File a Small Claims Suit against tenants for back rent. Make sure they don't get the next new car, credit card, or phone until you get paid. There's nothing quite like an unpaid judgement on a credit bureau report to make that happen. And, for those tenants who have remained employed but refused to pay, the filing is alone is a great motivator.
3. Have a Deferred Rent Agreement completed with your tenants. These are available for free download online. This is a great solution for tenants who have been negatively impacted and intend to make it right with you asap.
4. Offset the Security Deposit for unpaid rent; make yourself whole. A dollar today is worth more than a dollar tomorrow. The tenants can repay the security deposit over time. It's important to always remember that security deposits are the property of the tenant until legally offset.
5. Require tenants to provide proof of their filings for assistance with the local Housing Authority. Subsidies are available so while you might not get back rent paid at this point, anything paid is something paid.
6. File for eviction. Have your Notice To Quit and all required notices served so that you have a place in line on day one. You can give notice of eviction...you just cannot physically evict until the moratorium is lifted.
Running a business is challenging in the best of times. And, it's time to be ready to act. Please add to this menu...
Best.