Partnering with Residents in a Pandemic

Fundamental Principle

In times of crisis, our obligations stay the same, but choosing to work together lightens the load.

A quick note: This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

There’s no denying, it’s been a tough couple of weeks (or months, for those who live or have loved ones abroad). Many of us are worried about staying healthy, staying employed, or staying solvent - and it’s easy to think only of ourselves.

As we’ve contemplated our situation, we’ve felt grateful for stable employment and good health. That said, like many of you, we’ve worried about our family business, wondering how we can meet our obligations when residents may struggle with theirs.

When we launched our business in 2016, there was a lot we didn’t know - but our one core belief was that doing well must be paired with doing good. In times of stress, it’s our opportunity to follow through to the best of our ability - and we wanted to share our strategy to help others who may be feeling the same strain.

A few things you should know about us before you read on:

• We are not, we repeat, not legal/tax/financial advisors of any kind. Please familiarize yourself with your local laws, and follow them to a T.

• We’re a family company, and nearly every property we own is backed by a mortgage. We rely on steady income from our residents to maintain and upgrade these homes, and to meet our own financial obligations.

• We have tremendous respect for our residents, and believe that each wants to meet their obligations to us.

In recognition that the current pandemic may continue for several months, and significantly impact the economy and job market, we worked to develop a strategy for partnering with our tenants. With empathy, we’ve thought through how we might help, understanding the limitations imposed by our own obligations.

Our Resident Partners

We’ve thought through the many circumstances tenants may experience - and the good news is that we see plenty of opportunity to partner.

Scenario A: Residents who are able to maintain their existing employment, and able to keep working and paying their rent as usual.

How we’ll partner: All we can say here is “thank you”. Residents who consistently pay rent enable us to provide more support to those who may be impacted by the current pandemic. It also ensures we can continue to maintain their home in the standard they expect.

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Scenario B: Residents who experience temporary, but demonstrable hardship, whether through health crises, employment loss, or the need to support family and friends.

How we’ll partner: First, we’d ask that they let us know - right away - when they recognize there may be a challenge. This allows us to rally our team to support them, and there are several ways we’re committed to doing that.

1. Local organizations, such as churches, local governments, and non-profit groups can offer rental assistance to help residents through this unprecedented time. Our property managers are based locally, and experts in what resources may be available, and we’re happy to work with residents on identifying grants for which they may be eligible.
2. If a roommate or sublet can help cover the rent (or you need to help family members by providing them with a safe and stable place to live), we’re happy to modify existing contracts. Of course, all residents / subletters would need to be qualified by our Property Manager.
3. Some residents may be in a position where hours are reduced, or a temporary furlough has been put in place. If this is clearly a short-term issue, we’ll create a plan to help you find your footing over time.

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Scenario C: Residents who experience long-term hardship, and do not see a path on the horizon to regain their footing.

How We’ll Partner: We know this is an incredibly tough time, and we will always work with residents in this situation. That said, we have to continue meeting our mortgage payments for each property.

When residents proactively let us know they’re in this situation, we try to lessen their burden. Where demonstrable hardship exists, we’ll absolutely cancel the contract with no penalties for doing so.

Our hope is that residents can move in with family or friends while things stabilize, enabling them to avoid collections and longer-term impact to their credit and rental history. Where possible, we’ll help with that transition by paying for a moving truck - and assuming all efforts have been made to return the property in good condition - returning the full security deposit.

When Residents Fail to Partner

Our hope is that being human, and reaching out with care, will lead to great partnerships with our residents in this time. That said, we are preparing for residents who seek to evade, or profit from, these tough times.

Scenario A: Residents who fail to communicate, and won’t respond to property management.

How we respond: Unfortunately, there is only so much we can do to help residents who won’t reach out. As life returns to normal, we’ll have to begin eviction proceedings if residents are unable to make their payments and won’t work with us to develop a better plan. This is our definition of failure - as there is so much more we can do to help a communicative, solutions-oriented resident.

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Scenario B: Residents who don’t experience hardship, but seek to profit from measures taken in a time of crisis.

How we respond: This is of course an unacceptable exploitation. Should we discover a resident has not been impacted by the pandemic, but is unwilling to meet their obligations, we will hold them fully accountable as supported by local, state, and federal laws.

Our Longer Term Vision

We have big dreams for our family business, as do many of you. We hope to someday be equipped to fully support residents through a tough time, and meet our obligations while forgiving theirs.

In the meantime, we hope to offer some comfort - to our residents and to all of you - in providing a framework for how you might navigate this time with calm, patience, and empathy.

Stay safe, stay healthy, and stay human as we get through this together.