All Forum Posts by: Heather Frusco

@Heather Frusco I'm not sure I understand the last part. Did you mean the LL and the tenant *can't* afford it? Regardless the federal government is sending cash payments to most Americans so in the absence of a loan or gift from a private acquaintance the government is stepping in for the average American. I cannot predict how long this will last and certainly don't claim to have all the answers but hypothetically if a loved one or friend of mine needed help with rent or to cover their costs of their rental property in this current situation yes I would help them. I have very finite resources so I can't fly around neighborhoods dropping cash on people but from a broader perspective I think that collective solidarity is a better path forward here than business as usual. I understand I probably come across a bit utopian but I truly believe these are unprecedented times and we should avoid the impulse to turn inward.

Robert, I'm sorry I think you read it before I edited it... no for sure... agreed. Everyone has finite resources, it is just wrong to assume that LL's have endless resources or that their resources are a 'free for all'... we help who we can, when we can... and who we help is completely ours to determine. I think some just believe that LL's should help out no matter as a blanket statement and believe that they have a right to the LL's resources, if any. A business any business which offers their customers (tenants) options to make their payment IS trying to help in as much as they can... heck it may not be as much as some may like... but that's akin to receiving a gift, being ungrateful for it and saying there should be more - failing to realize that no one had to give you a gift in the first place. Same applies here, most LL's are offering payment options, repayment options, waiving fees, etc... but there are still those which want 'more' they would like 'free' - just not possible.

3 Votes

Originally posted by @John Clark:

"John, don't really know what you're talking about..."

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Sure you do Heather, you said tenants who didn't pay rent are thieves in your original post. I pointed out that Cheesecake Factory has made a deliberate decision to not pay rent. So per you, it's a den of thieves. Are you going to boycott it? Are you going to label it a den of thieves? Stop getting the vapors and answer the questions.

John, I think you may have your posts confused... never said that... please review your posts.

0 Votes

Originally posted by @John Clark:

"If you say so John. Silly us for giving tenants the option to make ends meet by allowing them to pay with a credit card and absorbing the processing fees. "

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And if they refuse, Heather, you call them thieves. Now stop singing and dancing and evading the question. Are you going to boycott Cheesecake Factory for being a den of thieves? If not, why not? Its CEO made a deliberate decision to not pay rent.

John, don't really know what you're talking about... but there is no Cheesecake Factory where I am... way overrated. And again, CC is an option that Tenants fortunate enough have available during an emergency or you can certainly try to seek financial assistance from the govt. or you can seek a personal loan or you can ask family and friends for assistance or you can downsize all together. Hope that helps.

0 Votes

Originally posted by @Robert M.:

@Heather Frusco It is obviously your prerogative to means test your tenants to determine if they need help. However you initially began this thread to discuss rent/evictions in the context of covid 19 yet you seem to be approaching it from a largely business as usual perspective. The Senate just unanimously passed a relief package to give straight cash payments to a giant swath of Americans. This is a crisis that will probably end up without parallel in our lifetimes and in my opinion we ALL need help. This shouldn't be landlord vs tenants or relief to only the most downtrodden. My only concern with your initial post is it is encouraging landlords on this website to turn towards free market ideals in a time that desperately needs communal effort to help everyone. For some reason in America communal solidarity is avoided at all costs. If a landlord truly needs a monthly rent payment immediately to stay afloat I would hope someone would help them whether it be a wealthy friend, family member or the government. If a landlord is in a position to take a hit to their bottom line for a few months to help someone else, I hope they would do everything they can to help them too.

This whole argument is also assuming that there is a pool of renters waiting to take evictees place, which I am not so sure about, so we it might be a moot point anyway.

Robert, I follow your level headed approach. Let's just for arguments sake say... that a LL is not able to afford to keep a Tenant in the unit because the same LL 'floated' the Tenant for a few month's using up reserves. Maintenance comes due, the furnace just gave out and the Tenant obviously needs heat/cooling... you mention that "If a landlord truly needs a monthly rent payment immediately to stay afloat I would hope someone would help them whether it be a wealthy friend, family member or the government.' -- Wouldn't the same apply if a tenant needed help making their payment or is that an option only available to LL's?... but, let just for arguments sake keep going with your open-ended recommendation... the LL cant afford it (could have if they didn't use up reserves), the Tenant cant afford it... who exactly should they turn to for assistance, can they both turn to you for it?

2 Votes

Originally posted by @John Clark:

"you should beware what you wish for. Those are commercial leases and like most commercial leases... when the business makes more they pay more in rent in ADDITION to that the landlord in most commercial leases can take possession of all the businesses assets --"

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Wrong. Most commercial leases are for flat, fixed amounts and the only time you'll see a participation rent is when the business is new and the tenant needs to get established in his cash flow. If the landlord likes the tenant's business, he might agree to a participation rent. You and I both know that Cheesecake Factory and other established businesses aren't doing participation leases.

As for assets, landlords in commercial leases often provide that fixtures become landlord property at the conclusion of the lease. That is common. Other assets? rarely. Usually a judgment levy. Perchance you are thinking of possessory liens?

You called non-paying tenants thieves, @Heather Frusco , and if Cheesecake Factory DELIBERATELY isn't paying rent, then it is, per you, a den of thieves. Are you going to boycott it?

If you say so John. Silly us for giving tenants the option to make ends meet by allowing them to pay with a credit card and absorbing the processing fees.

1 Vote

Originally posted by @Account Closed:

Heather, here's an idea. Pay their rent, use your reserves. And if you run out, take out a credit card. If you can't do that, take out a loan! I heard interest rates are dropping.

You might not consider your renters lower class, hell they might all be able to float without your "help". But I gaurentee you most of the slime on here is chomping at the bit to evict at whim. You just reinforce their fever dreams by posting this garbage. You people aren't investors, your middle men. The market doesn't need you anymore, and it will abandon and destroy your business at a whim if it serves the fed.

Cory, if it comes to that we will but unlikely if we plan accordingly now just as I have mentioned in this post... how a LL's reserves are used are not dictated by the tenant, they are dictated by how the LL wants to deploy them... if at all. Why? because it's their reserves their rules, when we say 'reserves' lets be honest it $ that LL's have saved up forgoing to buy the latest and greatest and even avoiding to splurge on their own kids... so the LL's reserves from sacrifice, their rules on how or if they will use it and if the do use it... consider it a courtesy. A credit card is an option for you... if you don't want to use it... then don't that is your decision but don't say you didn't have any options. As far as your comment of: 'the market doesn't need you anymore, yata, yata, yata' ... you need to come back to reality and look around you... no really, take a pause and a good look around... when is the last time you have seen a rental home offered by the government for you to rent? ... take your time... the simple truth and whether you choose to believe it, is that the government depends 99.9% on the private sector for housing, heck the furthest they will go to providing you with housing is offering to pay your rent and most of the time only partially (section 8). Guess who comes to the rescue for young Americans which can't afford a home or don't want to own a home and would like to stay mobile?... yep, private landlords, the alternative option would homelessness.... so you're welcome... silly LL's taking on all that risk that even the govt. isn't willing to take on and then just asking you to make your payment as agreed.

4 Votes

@Mary M. I'm sorry I'm trying to follow your thought pattern which I don't agree with but respected until you mentioned... "i too live off my rentals, which are paid in full" and you then go on to say you will do ANYTHING to help out... "i will share the pain.... ie if they are short 500 i will eat 250 and then they can pay the balance over time" ... So to recap: Your rentals are paid IN FULL, you will SHARE the PAIN but are only willing to forgive $250 in rent?!?!? ....... Why not forgive it all, why not forgive 100% of the rent until the tenant is employed again (1,2 or maybe even 3+ months later)?

4 Votes

Originally posted by @Dan H.:

Originally posted by @Greg M.:

Originally posted by @Mary M.:

Howabout the idea that everyone should share in the pain equally??

Well Comrade Mary, sharing the pain equally would reward those who failed to prepare/sacrifice and punish those that did prepare/sacrifice.

I sacrificed to buy a unit. I pay to keep it in habitable condition. I sacrificed to build up reserves so that a rent interruption or major capital expense will not affect my ability to maintain ownership of the unit (and therefore allow you to continue to live there) or its habitability. The fact that you as a renter did not sacrifice and save and now are in pain is not a reason to try and have me share your pain.

Renting is a business transaction. We rent a place for market price. Pretty simple. Now if a landlord is going to share in the pain during bad times, shouldn't they also share in the reward when times are good? Right, Comrade, we want equality! So if I as a landlord should take 50% of the market rent for the next 3 months because times are bad for you, shouldn't I be entitled to more when times are good for you?

I'm sure you are aware of the Fight For $15 movement. A lot of people here went from $12/hr to $15/hr. Should I as a landlord get a 25% bump in rent because the tenant got a 25% raise? Seems fair to share in the good times...

>A lot of people here went from $12/hr to $15/hr. Should I as a landlord get a 25% bump in rent because the tenant got a 25% raise? Seems fair to share in the good times...

If you are charging market rent, you already are sharing in the good times plus quite a bit (you had a greater share of the good times than those who are earning minimum wage). The average rent has increased much faster than minimum wage and average wage for virtually any long term time span in Los Angeles. The amount of household income going towards rent is near the all time high and this includes going back to when most households were single earner families. This implies not only has rent gone up faster than wages, but it has gone up enough faster than wages that it has been able to overcome the increase in average number of wage earners per family.

In my market (San Diego), average rent has increased almost $500 over the previous 3 years. Your comment seems to imply that low end workers should somehow be able to continue to pay for rent post increase on the same minimum salary that was in place when rent was $500/month less.

Dan, no need to backpedal out of it now... you personally... should the landlord then raise rent on you personally, when you get a bonus or get a pay raise at your job? -- Greg, makes a great point for all those looking for LL's to 'share' in the bad times, if that's the case should a Tenant then also 'share' with the LL in the good times. Looking forward to the answer.

0 Votes

Originally posted by @Account Closed:

Wow. Almost all of you are truly, undeniably, souless. The literal bottom of the barrel "investors". Look at how you scramble and justify you gutting of the already downtrodden lower class. At the single whisper of lost profits you rush to clamp down on your pathetic assets. You expect exact or increasing returns in a global crisis? Call it business, call it whatever makes you sleep at night. You are truly doomed. This summer should be interesting, hope you make it to the hospital before they run out of ventilators!

Cory, don't know how you 'assume' all renters are 'lower class'... which just seems discriminatory against tenants in a way, so... not cool 'labeling' tenants like that. I'll bite... what would you suggest?... Apparently LL's offering to help ONLY those which absolutely need it and offering payment and deferral options, doesn't work for you. What would be Cory's picture perfect situation of how a LL should address a non-paying tenant during this situation?

3 Votes

Originally posted by @Paul Merchant:

@Heather Frusco so, let's just say that they've always paid, but can't pay now, what are you going to do, evict them? Risk a unit standing empty for another month, or two? I hope not, because that would be foolish from a business perspective.

One thing that does bother me, is that there are a lot of arrogant landlords out there, and so as a group, we may be more hated than lawyers. And that's not good for business.

Paul, if a Tenant has not exhausted all options to help themselves there would absolutely be an imminent eviction... let me ask you something... when you have a perfect history of paying your car payment but miss enough of them, regardless of the reason... will they still repo you car?... you bet - how about when have paid your cable tv provider for years will they keep it on if you don't continue to pay for the service? As far as having a rental unit vacant vs. having one occupied with a non-paying tenant... a vacant unit wins all day long why?... well you have to put yourself on the other side to know that... because a non-paying tenant will still cause damage in a unit and will require the landlord to maintain systems, which we as responsible landlord will... we will still show up to fix the AC the HEAT the Leaky Rood etc..... A vacant unit, can still have all of that happen... but the decision falls solely on whether or not I want to do it. So to be clear in order of preference: 1) occupied with a paying responsible tenant; 2) vacant; --- as you can see 'occupied with a non-paying' tenant is no where on the list because aside from paying for you to live for free it also costs me more to have you in it when you don't pay rent vs. just having it vacant. Hope this helps.

8 Votes

All Forum Posts by: Heather Frusco

Heather Frusco has started 5 posts and replied 81 times.

Post: Why is Rent still due during COVID-19?

Post: Why is Rent still due during COVID-19?

Post: Why is Rent still due during COVID-19?

Post: Why is Rent still due during COVID-19?

Post: Why is Rent still due during COVID-19?

Post: Why is Rent still due during COVID-19?

Post: Why is Rent still due during COVID-19?

Post: Why is Rent still due during COVID-19?

Post: Why is Rent still due during COVID-19?

Post: Why is Rent still due during COVID-19?