Rental Property Investor · Little Village, Chicago · Member since 2018 · 19 posts · 1 vote
Hello! Seeking help!!
I’m a landlord in Chicago, I work in a hotel and was laid off due to the COVID coronavirus crisis. I also am receiving less and less of my rental payments. My gross income in 2019 of $80,000 doesn’t allow me to apply for the city’s mortgage grant which caps off at $70,600.
I had a tenant break their lease and move out, another tenant breaking their lease as they’re students and had rotations cancelled, and a tenant behind on rent, and another also moving out.
So now, I have no job, I’m still waiting for these unemployment checks to show up, so zero income, and will likely have zero rental income in the coming month, and already am receiving significantly reduced rental payments. Not to mention, I feel I would be in violation of my tenants safety by allowing their units to be viewed during the stay at home order.
Does anyone know of any local, state, federal, anything, assistance for someone in my shoes?
From my employer I’ve only made probably less than $3000 so far this year before I was laid off.
Real Estate Agent · Atlanta, GA · Member since 2015 · 359 posts · 158 votes
6y
I would contact your lenders right away and see if they would allow you to miss 2-3 payments. Then I would apply for unemployment. Then talk to your bank to see if you qualify for an SBA loan as your rental properties should be considered a business.
I don't know the rules in Chicago, but if the tenants moved out and it is empty I would contact local non-profits and churches and work with them to see if they can help people move in at a reduced rate and cover power bills for 3-5 months.
Your goal right now is to survive the next few months and get back on your feet around August and September. Spend some of this time to make a PLAN so you are better prepared in the future. Things to consider are how to build up reserves, how to get better tenants, are the properties you have now the right fit for you, why were you only making 1K/month for working Jan-March?
Real Estate Agent · Atlanta, GA · Member since 2015 · 359 posts · 158 votes
6y
I would contact your lenders right away and see if they would allow you to miss 2-3 payments. Then I would apply for unemployment. Then talk to your bank to see if you qualify for an SBA loan as your rental properties should be considered a business.
I don't know the rules in Chicago, but if the tenants moved out and it is empty I would contact local non-profits and churches and work with them to see if they can help people move in at a reduced rate and cover power bills for 3-5 months.
Your goal right now is to survive the next few months and get back on your feet around August and September. Spend some of this time to make a PLAN so you are better prepared in the future. Things to consider are how to build up reserves, how to get better tenants, are the properties you have now the right fit for you, why were you only making 1K/month for working Jan-March?
Homeowner · Chicago, IL · Member since 2019 · 5 posts · 3 votes
6y
You should be able to apply for a TEMPORARY Loan Freeze for at least 3 months and potentially extend it based on the situation then. Make sure to mention 'Temporary Freeze' to your lender and see what they have to offer considering your lay off and no rental income. Also, get everything in an email where it clearly mentions it will not affect your credit in any way. Good Luck!!
Rental Property Investor · Little Village, Chicago · Member since 2018 · 19 posts · 1 vote
6y
@Josh Bakhshi, @Jay Chitta, @Henry Lazerow thank you for the pointers. I know Chicago has been a tenant friendly city but I wasn’t sure if there was any assistance also being given to landlords directly affected by this. I will work with my reserves and look into temporarily freezing my mortgage payment.
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
6y
Originally posted by @Account Closed:
Hello! Seeking help!!
I’m a landlord in Chicago, I work in a hotel and was laid off due to the COVID coronavirus crisis. I also am receiving less and less of my rental payments. My gross income in 2019 of $80,000 doesn’t allow me to apply for the city’s mortgage grant which caps off at $70,600.
I had a tenant break their lease and move out, another tenant breaking their lease as they’re students and had rotations cancelled, and a tenant behind on rent, and another also moving out.
So now, I have no job, I’m still waiting for these unemployment checks to show up, so zero income, and will likely have zero rental income in the coming month, and already am receiving significantly reduced rental payments. Not to mention, I feel I would be in violation of my tenants safety by allowing their units to be viewed during the stay at home order.
Does anyone know of any local, state, federal, anything, assistance for someone in my shoes?
From my employer I’ve only made probably less than $3000 so far this year before I was laid off.
Any insight would be greatly appreciated.
You have the following choices- Do a video of the units & provide it to prospective tenants or ask your tenants to vacate for a showing. No one who appears to be sick should be allowed to enter the premises; When they enter they should wear masks and gloves.
Sunnyvale , CA · Member since 2017 · 373 posts · 362 votes
6y
@Anjali Khetarpal
On top of all suggestions regarding mortgage freezes, You may want to see how the CARES act can help with unemployment benefits particularly in the hotel industry.
I’m a landlord in Chicago, I work in a hotel and was laid off due to the COVID coronavirus crisis. I also am receiving less and less of my rental payments. My gross income in 2019 of $80,000 doesn’t allow me to apply for the city’s mortgage grant which caps off at $70,600.
I had a tenant break their lease and move out, another tenant breaking their lease as they’re students and had rotations cancelled, and a tenant behind on rent, and another also moving out.
So now, I have no job, I’m still waiting for these unemployment checks to show up, so zero income, and will likely have zero rental income in the coming month, and already am receiving significantly reduced rental payments. Not to mention, I feel I would be in violation of my tenants safety by allowing their units to be viewed during the stay at home order.
Does anyone know of any local, state, federal, anything, assistance for someone in my shoes?
From my employer I’ve only made probably less than $3000 so far this year before I was laid off.
Any insight would be greatly appreciated.
For what its worth, I showed and successfully rented( for $100 more than previous) one of my occupied units, while the current tenant was working from home.
I pre-screened the new tenant, to make sure she was serious and capable. Then I gave current tenant several days advanced notice, and let her know that we would wear N95 respirators and gloves during viewing. The new tenant appreciated the attention to detail, and the current tenant was very reasonable, since we did not touch anything and were being fast and safe about the showing.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
6y
@Account Closed like many others on this board, I feel bad for you in this situation. I personally plan to show apartments that I own in Berwyn that are occupied during this time. I will be using masks, gloves and booties to cover shoes and will ask potential tenants not to touch anything on the way through. I think there is a path to showing occupied units during this time.
Also, keep in mind that tenants may not be able to be evicted during this time, but rent is still due. If a qualified tenant is unable to pay rent we should obviously work out a solution for them to pay us rent in installments, etc. This pandemic doesn't mean that people get to just skip rent though. You should still treat this as a business and pursue back rent even if you do waive late fees or take other rational steps to show compassion.
HIGHLAND, MD · Member since 2011 · 160 posts · 141 votes
6y
@Anjali Khetarpal
You need to get your vacant apartments rerented immediately to slow the bleeding. File all the appropriate paperwork with regards to the previous tenants vacating early and document everything. Offer some incentive like 1/2 off 1st months rent to get some call activity and screen for someone with a safe job that has a low chance of getting laid off. Maybe try for a section 8 tenant. Get into those apartments and fix any issues yourself to keep costs down since you have time. Figure out another way to make money or get another job, even if temporarily until your old job starts up again.
Is it an option for you to move into one of your rentals to get out from where you live now? It’s extreme but it will hope only be for a short time.
Chicago, IL · Member since 2017 · 104 posts · 35 votes
6y
@Account Closed Are your rentals under an LLC or sole proprietorship? If so, you could apply for an SBA loan and use the money to cover your rents. I believe the loan will be treated as 'forgivable' under this circumstance. This is very unfortunate. Best of luck to you.
Investor · Chicago, IL · Member since 2013 · 129 posts · 68 votes
6y
@Account Closed So sorry to hear about your situation. When you contact lenders about mortgage deferment options, make sure to get clarity on the terms they can offer. In some scenarios any missed payments will be due all at once, while in others they may be spread out over time or, better yet, added the back end of your mortgage to extend the term.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
6y
@Jerry N. yes a lot has changed in the past two weeks! Unfortunately, we are not able to show occupied units currently. I am moving towards 360 interactive tours for my listings and for my rentals to combat this.
Chicago, IL · Member since 2020 · 59 posts · 19 votes
6y
@Jay Chitta -I was tempted to accept a forbearance offer from one of my lenders, but found out that while they cannot legally report you as late if you enter into a forbearance agreement, the gap payments will be a mark of forbearance on your credit history. But I am sure lenders will understand. In her case I would confidently take any offers.