#LandlordLife Newsletter Issue 3

#LANDLORD LIFE ISSUE #3 - COVID-19 EDITION | SUMMER | $2.00 MANAGING YOUR RESIDENTIAL PROPERTY DURING A CRISIS: Tips From One Landlord To Another A landlord in Long Beach is feeling the effects of COVID-19 combined with the government’s recent announcement that tenants cannot be evicted if they do not pay their rent. Upon learning the news, the tenants of his 13-unit apartment building organized and agreed not to pay any rent until this is all over. That could mean months of no rental income for the owner, but he would still be on the hook for the property taxes, insurance, maintenance, utilities, and possibly the mortgage—not a desirable situation for any landlord. in the government when they tell tenants they cannot be evicted but still demand property owners pay their property taxes on time with no leniency for being even a little late. With ever-changing rules coming out day to day from the government on how to handle this situation, it is difficult for real estate investors and property managers to navigate what they are supposed to be doing. Outside of calling local government authorities to lodge complaints or borrowing money from one of the many SBA loan programs, the only other answer is simply to wait and hope for the best. What is the landlord to do? It isn’t even possible to evict the tenants with the courts being closed right now. FOR LANDLORDS DEALING WITH A TOUGH TIME DURING THE COVID-19 CRISIS, HERE ARE A COUPLE OF TIPS TO HELP YOU SHOULD YOUR TENANTS’ INCOME BE AFFECTED BY THE CRISIS: With next month’s rent coming due soon, are your tenants going to be able to pay? • Send out a letter to your tenants offering a discount. Maybe something around 10% for on-time payments and 5% for anyone who pays by the 10th. • Offer to give one month’s rent forbearance and spread that payment out over six to 12 months. Note the difference between forbearance and forgiveness. What will happen when the crisis is over? How backlogged will the courts be? It could be months before they even get caught up. These questions are probably crossing the mind of that landlord and the many others now in this same situation all across the country. With evicting non-rent-paying tenants not even being an option, the only viable solution is to sit tight and wait to see what happens once the pandemic is over. Let’s all hope this is over soon so we all can get back to our normal daily lives. If you’d like to discuss any other options, we are here to help. While this is not an ideal solution for anyone, it may be the only option that most landlords have at the moment. It’s hard to have confidence GIVE US A CALL AT 951.416.1411