#LandlordLife Newsletter Issue 3 - Page 3

Where the rental unit is part of a residential investment property, the same should be assessed as business-to-consumer and consumer- to-consumer for residential units in primary residences. What is the consideration of the property provider versus the property user, and how is this changing in response to the pandemic? What is each party’s ability to pay in their current financial position? Mortgage deferrals can be negotiated with your financial institution to mitigate the effects of lost and deferred income. The Federal Reserve has injected the banking system with resources to support low-interest loans and to supplement deferred rental payments. Take advantage of these resources in navigating the pandemic and economic aftermath. Some tenants may be using the outbreak as an excuse to not pay rent, but the majority are suffering unprecedented stresses and financial hardships. If you have a quality tenant who consistently pays on time each month, you should strongly consider cutting them some slack during this time. Quality tenants may become harder to find in the coming months and years. WHAT TO EXPECT GOING FORWARD The impact of COVID-19 on rental income streams has pushed some landlords to get out of the rental market, away from the added stresses of collection during this time. Fortunately, growing investor interest in the current real estate market has made it an ideal time to offload an underperforming rental property. Low interest rates make it an attractive time for investors with the financial capacity to invest in rental properties. Both foreign and domestic investors are expected to implement a buy-and-hold strategy, selling the property in later years when the market regains momentum. Landlords that are unable to sustain stopped or deferred rental payments for several months may consider mitigating losses by making their property available for sale to investors that can see it through a long-term economic recession.