Coronavirus and May Rents

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Though many of us have collected rents in April, now that May 1st is rolling around and a lot has happened in April (with stimulus checks, the SBA PPP program, EIDL, unemployment etc) and also all sorts of information being thrown around such as rent forgiveness, rent strikes etc. What do fellow investors anticipate for May rent collection. I have already had an inquiry saying can I not pay for May due to the pandemic with no explanation as to why?

@Carlos Lez you are spot on here. We actually saw one of our strongest months in terms of total collected in April. We typically are around 1% delinquent at end of month for that months rent charges (pet rent, rent, section 8, utilities, etc). We are on track for a VERY small increase this month and are anticipating a larger jump up in May. I would honestly be shocked if we finished May at + 5% delinquency. Our operations are run different to most and that should be taken into consideration as well.

I am mostly running class C properties. The May rent collection outlook is not looking good.

Originally posted by @Kenneth Mooney :

@Carlos Lez you are spot on here. We actually saw one of our strongest months in terms of total collected in April. We typically are around 1% delinquent at end of month for that months rent charges (pet rent, rent, section 8, utilities, etc). We are on track for a VERY small increase this month and are anticipating a larger jump up in May. I would honestly be shocked if we finished May at + 5% delinquency. Our operations are run different to most and that should be taken into consideration as well.

 

@Carlos Lez same here in regards to asset class. Ours is definitely looking worse than April.

It is important to note that a large portion of our jobs come from Military and Medical. We also have about 25% of our portfolio that is section 8.

That helps a lot. Mine on the contrary are mostly students or frontline workers like cashiers, store managers etc. Nearly every college in the country has gone online so in addition, everyone wants out the lease. Who knows if universities will even open for in person classes in the Fall. The government stimulus is not helping landlords in anyway. On the contrary there are bills all over the table for rent forgiveness. There is no mortgage forgiveness, and even it that happens, who covers the rest of the expenses?