#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