No rent because of Corona, what to do?

Question

HI All!

As an out of investor wanted to get some perspective from your wisdom: I've got occupied SFH, and my Tenant is not paying:

I got 250$/1090$ for May

and 150$/1090$ for June.

My Tenant got fired on April 27th (corona...).

She said she entitled for unemployment fee (*pic attached), but she is waiting to get it. Does it make sense that she wait almost 2 months for it?

The PM and thought about some payment plan, but kind of wait until she'll get the money. It is taking more time than we thought. I am asking myself how long should I wait? I want to be considerate, but I also need this rent.

What would you do?

So far The tenant got in in December in paid each month until May (with one time having 2 days delay).

unemployment entitlement(tenant didn't get the money yet):

Thank you very much for your help and advice!

Allen Tracy · Answer

I got my unemployment within three weeks of filing. Looks like they filed on April 16th and tried claiming weeks before their actual termination date of April 27th so that would be why there are weeks that were not paid. Then it looks like they've actually been paid three different payments for May. Good luck!

Jacob Sampson · Answer

It certainly can take the government longer than it should to do just about anything. I would think she would get the check soon.

I start getting very worried once my tenants are more than 1 month behind. I would give a 3 day pay or quit notice to get the process started. You can delay movng forward with it but at least she will be more motivated to get this resolved.

That being said, this is what cash reserves are for.

Matthew Irish-Jones · Answer

@Idan Narotzki it really depends on your state regulations. If you are in my state there is pretty much nothing you can do but, explain the consequences of not paying once restrictions are lifted, and ask nicely for payment. It drives us all nuts but, its the reality we are living in.

Mathias Simmons · Answer

I'm not an unemployment expert and I'm sure there are various factors that go into when people get paid, but 2 months seems like a very long time compared to the people that I know personally who are on unemployment during this time. I've been told from a couple of different people that they started getting paid pretty quickly. I'd dig into that a little more because her experience isn't lining up with what I've seen personally.

If you have the time, you may need to step in and help them navigate the process so you can get paid. I know it's not your job, but your success relies on it so it may not be a bad idea to help where you can. You may also need to remind them on the importance of paying rent during this time, that their rent is still due (and potentially collecting interest depending on where the property is and what's in your lease), and trying to motivate them to start paying you back now. I think that has a better chance of working for you than waiting on a check from the government. This may be one of those situations where you're trying to get blood out of a stone. But the fact that she only paid a quarter of her rent less than a week after she was let go says to me that paying rent is either extremely low on her priority list or that she is irresponsible with her finances. Either way, it doesn't exactly give me confidence that a payment plan would work out.

No rent because of Corona, what to do?

No rent because of Corona, what to do?

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