Are you receiving rents since lockdown?

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Property Manager · Salem, WI · Member since 2020 · 23 posts · 20 votes
6y

Our company in Wisconsin has had to make changes very quickly to keep everything operating smoothly and we have stayed on top of every new development which allowed us to be pro-active since this started. 

So far we've done very well. We've only had less than 6 tenants with whom we've had to work with due to loss of jobs or bank account issues. I think one of the reasons we've been successful with rent collection both in April and May has been because of our communication with our tenants. We have been keeping them informed every step of the way through this and provided them with resources should they need assistance. Our attitude wasn't "PAY OR ELSE" it was "HOW CAN WE HELP YOU TO AVOID HIGH RENT BALANCES WHEN THIS IS OVER".  

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  • Mark Sewell
    Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
    6y

    I am not a landlord, but I think the only thing you can do is appeal to peoples sense of decency.  Most folks will respond in kind.

    Plus I think renters aren't all short-sighted and/or stupid.  Some will try to get over in the short term, but most will understand that this situation isn't going to last forever and eventually the music will stop playing.  Then where you going to go?  

    I would imagine landlords that get through this are going to take a pretty dim view of anybody that didn't part with their previous landlords on good terms - at least to the extent that tenant screening rules will allow.

    0Reply
  • Quinton Quettan
    Member since 2020 · 1 post · 0 votes
    6y

    Yes I'm still receiving rents. I own 2 rental properties. One is section 8 rented and the other is rented to a guy who prepares taxes. Luckily he had already made most of his money before the shut down. GOD is good.

    0Reply
  • Rachel Moses
    Rental Property Investor · Owings Mills, MD · Member since 2016 · 8 posts · 9 votes
    6y

    I have 7 rentals and all of them have been making their rent payments. 

    0Reply
  • Robert Ryan
    Member since 2020 · 1 post · 0 votes
    6y

    Own one property in Upstate New York.  We are a lot better off up here, but I have had no problems with either of my tenants making rent.  Granted, I only own the one property, larger portfolio's may be running into more problems.  On another note, I closed on this property February 1st and was planning on purchasing two more this year.  Is it absolutely insane to even consider buying more property now? Do you guys think these 4 million home owners who have "suspended" their mortgage payments are going to pay back what they owe by the 12 month mark, or will a majority of these payments become delinquent? This would mean incredible opportunists to buy, which makes me want to hold off on buying now and just stack as much capital as possible for when the inevitable happens?

    What do you guys think?

    0Reply
  • Ramon Copeland
    Member since 2020 · 24 posts · 3 votes
    6y

    I would buy interest rates are low...I definitely think our economy will come back and people will always need housing 

    0Reply
  • Daniel Palma
    Rental Property Investor · Torrance, CA · Member since 2018 · 7 posts · 2 votes
    6y

    I have 5 rentals in Indianapolis and KC and all tenants paid in April, one paid on April 29th. May 4 of 5 have paid, in contact with PM to figure out what plan has been set up. Good luck to everyone. Stay healthy!

    0Reply
  • Dawn Peterson
    Member since 2020 · 9 posts · 3 votes
    6y

    I have rental in no they 

    0Reply
  • Brian Flannery
    Rental Property Investor · San Antonio, TX · Member since 2018 · 18 posts · 8 votes
    6y

    @Daman Gandhi 2 in Texas, paid every month. No issues

    0Reply
  • Guy Azta
    Investor · Los Angeles, CA · Member since 2016 · 89 posts · 73 votes
    6y

    Hi @Robert Ryan saw you were trying to get opinions about whether to buy or not. So mine is of course just an opinion and is no better or worse than the next guy's. There are probably 2 main scenarios you should consider fully. One is where the economy will rebound in the near future and things will return to some form of a new normal where in general tenants have jobs, there are enough of them and can support paying rent consistently. In such scenario, it is unlikely you will see the type of discounts we all saw past 2008, or at least you'll have to search hard for them. The other scenario is that the damage will happen later, once the government eases out of the stimulus and propping up everyone, but jobs are not coming back fully. That may not happen right away. This is just my opinion, but that can be the biggest risk. So if you will be in position to ride out a period of 1-2 years where the economy and jobs decline, there may be less tenants to choose from, it may be more challenging to fill in the units etc, then you're probably in the clear. It's a tough quandary and many people are trying to figure this one out. I've heard some people say that in real estate even if you buy a bad deal, with time you have a good chance of turning it around. The key here is that you need to be able to keep it. There may be nothing else more important than that.

    2Reply
  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    6y
    Originally posted by @Daniel Palma:

    I have 5 rentals in Indianapolis and KC and all tenants paid in April, one paid on April 29th. May 4 of 5 have paid, in contact with PM to figure out what plan has been set up. Good luck to everyone. Stay healthy!

    I have experienced the same in KC. It just depends on where you are based and the tenant quality.

    0Reply
  • Aigo Pyles
    Flipper/Rehabber · Memphis, TN · Member since 2020 · 758 posts · 285 votes
    6y

    I'm a turnkey provider in Memphis, TN. We are still getting rental applications and receiving rents. 

    0Reply
  • Thomas Greer
    Real Estate Consultant · Member since 2020 · 80 posts · 102 votes
    6y

    I have a lone tenant not paying. They actually failed to pay March (before any of this blew up)...so I guess they were just “lucky”. Still haven’t paid (May) and under eviction moratorium. 

    On a somber note, it’s frustrating For me but it must be hard for them. Difficult times to be renting and living month to month.  

    1Reply
  • Tyler Smith
    Knoxville, TN · Member since 2018 · 50 posts · 17 votes
    6y

    Bought my first turnkey property in January, tenant was unable to pay in April, May is currently up in the air

    0Reply
  • Al Lee
    Member since 2019 · 22 posts · 10 votes
    6y

    I purchased in Baton Rouge, LA in Jan 2020, tenant paid in April and PM said tenant will make May payment, however it will be delayed and split into two payments.  So far, I consider myself very lucky.

    0Reply
  • Sean McKee
    Rental Property Investor · Chicago, IL · Member since 2017 · 268 posts · 189 votes
    6y

    I’m in an area that was heavily impacted in terms of employment. My rentals are in a  Class C Area and a lot of my tenants work in the service industry or industries that were shut down.All but one of my tenants has either been laid off or had their hours cut. Amazingly rent collections have been better than I thought given the situation. I’ve collected about 80% of what I’m owed for April and May. Not sure what June will be like though.

    0Reply
  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    6y
    Originally posted by @Daman Gandhi:

    Are you receiving your rents since lockdown ? Any specific government advisories in your region?

    I would say that in general, rents are being paid by a majority of residents in most markets.  Remembering that each market is independent and I think price point of the home and rental price point absolutely factor into the rates at which rents are being collected, so far the worst case scenarios have not come to fruition.  

    We managed a little over 6,000 properties in seven cities and they are all performing relatively the same.  We have averaged collecting roughly 98% to 98.6% of billed rents each month in the first quarter 2020.  For April, the total in month was 96.1% and total for April final was 97.1%.  So, relatively little disruption that prevented rental payments in April.  

    So far in May, it is exactly the same.  We are a point or two behind where we would normally be each day and those that are having trouble paying are doing a really good job of communicating and working to stay in their properties.    

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    0Reply
  • Alexis GuiniPro Member
    Real Estate Broker · Doral, FL · Member since 2016 · 62 posts · 11 votes
    6y

    I am still receiving rents. My two tenants are paying with some delays but that was agreed. I told them that I will not be charging late fees (to help them out) but with the condition that it is going to be in two payments during the month and that they will let me know if they can't make one full payment before the 5th. To be honest.. they have been late a lot in the last couple of months so it is actually the same as "before pandemic".

    0Reply
  • Christopher Sineno
    Real Estate Consultant · OH · Member since 2018 · 24 posts · 27 votes
    6y

    For our portfolio in Dayton, Ohio -- we are above 95% for the month. We only a few residents who have developed a habit of late rent and non-existent commnications have been an issue prior to COVID. 

    Overall it hase been a rather good experience!

    1Reply
  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    6y

    Out of 850 under management in Memphis, through the 20th, we are 4.3% ahead of April and 1% ahead of the March rent collection before all of this started. Average rent is $932. Showings and tenant placements are up.

    901-848-9028
    0Reply
  • Brian Briscoe
    Real Estate Coach · Salt Lake City, UT · Member since 2017 · 272 posts · 414 votes
    6y

    We're still getting rent from tenants.  100% in March and April; All but $400 so far in May with a promise to pay the rest soon (that's puts the number at 98.5%).

    Where we've had some problems is in vacancies... as luck would have it, we had about 30% of our tenants at one property that had leases ending in March/April with many of them moving out.  New leases are usually quick to come by this time of year, but leasing activity has definitely slowed down for us.  Two new leases this week have gotten us back up to high-80s on occupancy, and we've had two consecutive weeks of increased leads, showings, and applications.  Hopefully, it's a minor blip on the radar, especially as South Carolina seems to be getting back on track economically.

    Of course, we've added appropriate concessions to new leases and tried to incentivize renewals, and those efforts are being rewarded...  We'll see what the next month brings. 

    1Reply
  • Brian Briscoe
    Real Estate Coach · Salt Lake City, UT · Member since 2017 · 272 posts · 414 votes
    6y

    @Cody L. @Ramon Copeland@Ramon Copeland

    South Carolina has freezed evictions through mid-July.  We've had no refusals to pay.  We provided a list of resources to our tenants and asked for proof of financial hardship for any missed rent.  We promised to work with anyone affected, and so far have made a few concessions (late payments without fees).  For those with truly temporary employment issues, we would consider letting a tenant pay a reduced amount one month if they sign a lease renewal at a slightly higher rate starting the following month.  We have a few more tools in our tool box, and a few large ones in the tool shed out back, but so far we haven't had to use them.  As mentioned in the previous post, all of our units (88 as of today) are in South Carolina, which is slowly opening back up their economy.   

    0Reply
  • Marlen Weber
    Specialist · Plano, TX · Member since 2020 · 2k+ posts · 861 votes
    6y

    @Daman Gandhi I think most folks have been receiving rent. Based on recent data that came out, rent collection for May 2020 is only down 1.5% from May 2019. For April 2020, rent was actually up 2%. Fingers crossed the positive trend continues. 

    0Reply
  • Account Closed
    Property Manager · Salem, WI · Member since 2020 · 23 posts · 20 votes
    6y

    Our company in Wisconsin has had to make changes very quickly to keep everything operating smoothly and we have stayed on top of every new development which allowed us to be pro-active since this started. 

    So far we've done very well. We've only had less than 6 tenants with whom we've had to work with due to loss of jobs or bank account issues. I think one of the reasons we've been successful with rent collection both in April and May has been because of our communication with our tenants. We have been keeping them informed every step of the way through this and provided them with resources should they need assistance. Our attitude wasn't "PAY OR ELSE" it was "HOW CAN WE HELP YOU TO AVOID HIGH RENT BALANCES WHEN THIS IS OVER".  

    6Reply
  • John Hovanec
    Flipper/Rehabber · Piedmont, SC · Member since 2018 · 119 posts · 50 votes
    6y

    @Brian Briscoe. I also invest in upstate South Carolina. What kind of list of resources did you provide for your tenants. I have one tenant that is having a hard time that I would like to help get back on his feet. If you wouldn’t mind sharing I would appreciate it. Thanks 

    2Reply
  • Account Closed
    Property Manager · Salem, WI · Member since 2020 · 23 posts · 20 votes
    6y

    Hi John, 

    I would encourage you to check the types of resources that are currently being offered to help people who have sustained job loss, etc. during Covid-19 at state, county and local levels within South Carolina. In Wisconsin, we were able to compile an extensive list for our tenants so that they had options to take advantage of for help with rent, food, utilities, etc.  Every state may offer different types of resources. We decided to do the research for the tenant as part of our proactive position during this pandemic. We also utilized our payment plan procedures where we take the balance they owe and spread it out into affordable payments by using a sliding scale based upon the amount of the balance to determine the length of the payment plan.  

    At the end of April we sent out a mass email to our tenants THANKING them for doing their best to make sure that rent was paid during these trying times.  Yes, we know it is their responsibility to pay rent but this situation is unprecedented and we feel that the tenant needs to know that WE understand what they're going through.  Our thank you email was well received and I believe it encouraged them in such a way that we also had excellent rent collection results this month (May).  

    I hope this helps you.  Unfortunately by being in a different state I am not able to give you an actual list of resources. Good luck, be safe and stay healthy!

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