What are investors doing in NYC with renters asking for reduction

Question

Curious what other investors are doing when tenants ask for rent reductions. Are you asking for proof? Or coming up with formulas?

Nicholas Mann · Answer

@Michael Dvorkin

My friends property management business had about 20 of 300 tenants state they couldn’t pay rent due to COVID restrictions. They informed them that rent was due but they would work out what they could to help resolve the issue going forward. During this time everyone needs to try and work together so I think maybe breaking down a payment plan over the next year lets say a tenant couldn’t afford 2 months at $2500 a month they either pay what they can now and the difference call it $4000 would be divided up over the next 10 or 12 months maybe adding $400 over 10 months. I’m sure as many people on the forum discussed if the tenants are good tenants and are having issues during this time I don’t see why we as landlords can’t try to come to a reasonable win win solution.

Marc Winter · Answer

We don't give what you would call 'concessions'. If a tenant tells us they are laid off, or waiting for their check, we let them know we are thankful for the info, and let them know to pay us when that is resolved.

What else can be done? We can't just forgive the rent (the owners we represent would not like that very much) and we cannot serve notice to pay or quit.

We show some empathy, let them know we understand, and remind them that the rent is due as soon as they are able. It's like the rest of life--must take it day-by-day. This too shall pass.

Side note: I'd like to believe that the kindness we all show each other during this Big Mess will continue for more than a New York minute after we are all opened up again.

(No, I'm not taking any bets on that, but I can dream, can't I?)

Paul Hansen · Answer

I know of a tenant in NYC who received a $250 concession per month from their landlord through the end of July. Probably as a gesture of good faith and also as a way to promote the tenant to continue paying rent. This landlord also allowed the tenant to revert to a month-to-month lease in case the tenant found themselves in a predicament that they could not continue living in New York or afford the apartment. This was after the tenant inquired about anything the landlord could do to support during this time.

Abel Curiel · Answer

Hey Michael,

Thanks for posting this question!

Most of my landlord clients have tenants on programs like Sec. 8 and City FHEPS so they haven't had any issues.

Curious to see what other responses you receive...

All the best,

Abel

What are investors doing in NYC with renters asking for reduction

4 Replies