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We are fortunate to be able to offer our tenants 2 months of no rent. We will also pay our property management team as if rent was paid. Our tenants just happen to be medical workers.
We are fortunate to be able to offer our tenants 2 months of no rent. We will also pay our property management team as if rent was paid. Our tenants just happen to be medical workers.
My tenants (husband/wife) aren't totally unemployed but both went from full time to part time in mid-March. The difference between my mortgage on that house and their rent isn't a lot but I gave them the difference, plus an extra $300 - which covers half their usual rent. They have been renting from me for almost 4 years and I could ask for better tenants.
I still work my usual full time job (now WFH) and have been saving money on not eating out for lunch (daily), dinner (2x a week) or gas. My small way of being able to pay it forward.
I am offering my tenants judgments against them if they do not pay, and were unaffected by a layoff.
I have one tenant that has paid $650 out of $1,100 and is (supposedly) moving at the end of the month. She does have a $1,300 deposit, which will cover the cost of lost rent and hopefully any damages. She has been there ~4.5 years.
Radio silence from her, despite a couple of texts from me. She is working extra hours due to the virus, and MN says we cannot evict.
She has always been late, and was my lowest quality renter. My standards always increase when these things happen.
I am offering my tenants judgments against them if they do not pay, and were unaffected by a layoff.
I have one tenant that has paid $650 out of $1,100 and is (supposedly) moving at the end of the month. She does have a $1,300 deposit, which will cover the cost of lost rent and hopefully any damages. She has been there ~4.5 years.
Radio silence from her, despite a couple of texts from me. She is working extra hours due to the virus, and MN says we cannot evict.
She has always been late, and was my lowest quality renter. My standards always increase when these things happen.
I am offering my tenants judgments against them if they do not pay, and were unaffected by a layoff.
I have one tenant that has paid $650 out of $1,100 and is (supposedly) moving at the end of the month. She does have a $1,300 deposit, which will cover the cost of lost rent and hopefully any damages. She has been there ~4.5 years.
Radio silence from her, despite a couple of texts from me. She is working extra hours due to the virus, and MN says we cannot evict.
She has always been late, and was my lowest quality renter. My standards always increase when these things happen.
I have great tenants and would work with them if it really came down to it, but reality is this is why unemployment exists. There are 4 basic needs (Food, Water, Shelter, Clothing). The federal government has kicked in money on top of state unemployment and stimulus checks are going out. That money should only be going toward Food, Water and Shelter.. Clothing they should already have.
I have a friend whos a renter, I own my house and I am a landlord. He made a comment about "mortgage forgiveness" and passing it along to renters. I explained the mortgage is actually a small portion of monthly rent, there's property tax, insurance, umbrella insurance, and planned expenditures. If your rent is $1,200 maybe $300 of that is actually going to the mortgage... And it's not "forgiven" it's pushed back and owed as a balloon payment... Sadly people are just looking for any excuse to not have to pay even if they can afford it... If the government is freezing evictions they should pay back landlords for every month they go without rent.
Yes I think you should look at it from as a tenant. First for them this was foreseeable and a normal risk. No different then normal risk in life for them. Like losing a job and the income. This is something they even teach in high school. Be responsible and plan for these very common risk and have 6 to 8 months of income for living expenses. Since it is a common risk you save or pay when you gamble. Dont make enough. Live with 4 roommates in a two bedroom or tent until you do. Not fair a landlord should pay for their gamble.
Then add in with this vase most lower income may have even more than when working. With the stimulus unemployment income.
And if you want to give free housing fine. Dont make a select few like LL pay for it. All taxpayers should.
And a lot of tenants will blow this money and still not learn. Run up a high balance with their landlord. And then skip out when their is a eviction. Most Americans have poor credit so they dont mind if they do have a judgement against them. Then you will have the ones that just file bankruptcy. So make more money and minus rent their expenses are 50% less.
Then you have small LL and their retirement income is from profits from a rental property. Instead of more they lose all income. And unlike tenants this was not foreseen, taught in high school or a normal risk.
Any normal risk to that income. They could evict. Then get a new tenant or get the property ready for sale.
So who could have foreseen a problem like this more? Tenants or LL. Who chose to ignore common financial advice and take a gamble?
This situation was a common and foreseeable problem for tenants? But not for landlords? And .ist low income workers cannot afford to save six months or so of living expenses. It isn't just some choice that they made not to.
I have great tenants and would work with them if it really came down to it, but reality is this is why unemployment exists. There are 4 basic needs (Food, Water, Shelter, Clothing). The federal government has kicked in money on top of state unemployment and stimulus checks are going out. That money should only be going toward Food, Water and Shelter.. Clothing they should already have.
I have a friend whos a renter, I own my house and I am a landlord. He made a comment about "mortgage forgiveness" and passing it along to renters. I explained the mortgage is actually a small portion of monthly rent, there's property tax, insurance, umbrella insurance, and planned expenditures. If your rent is $1,200 maybe $300 of that is actually going to the mortgage... And it's not "forgiven" it's pushed back and owed as a balloon payment... Sadly people are just looking for any excuse to not have to pay even if they can afford it... If the government is freezing evictions they should pay back landlords for every month they go without rent.
So, we're not considering electricity essential? Sure, you could live without it but, come on. And internet? During normal times, absolutely, you could get away with it, but if you have kids right now, one kind of needs it so their kids can go to school and all. Or a car payment so they can actually go out and find and then go to a job when this is over? We're not yet in a "civilization is ending forever and it's all about basic survival mode."
And this whole "everything is great because...unemployment" is pretty laughable currently. Many states are still struggling to process claims. FL has a current backlog of almost 1 million claims, which should be further exacerbated when over 40,000 Disney World workers are finally officially furloughed on Sunday. The extra $600 just started being rolled out this week in most states, although there are still about three handfuls of states that haven't and that certainly doesn't help if one's claim is still in backlog. Saying nothing of the meager state unemployment levels that many states have even if one is lucky enough to have already had an approved claim.
Some tenants, just as some LL, did a better job of planning/saving for unexpected circumstances. I feel for those on both sides. However, I think it's an insincere argument that some are making that tenants should have a 6-8 month rainy day fund, while LLs should be able to play hardball even if they decided to run their business with a huge debt load. The reality is that both sides should be better prepared. The reality is that some LLs will get hosed, but the majority, if they're willing and able to have a little patience and understanding will be made whole (although that could take up to a year in some cases).
So, we're not considering electricity essential? Sure, you could live without it but, come on. And internet? During normal times, absolutely, you could get away with it, but if you have kids right now, one kind of needs it so their kids can go to school and all. Or a car payment so they can actually go out and find and then go to a job when this is over? We're not yet in a "civilization is ending forever and it's all about basic survival mode."
And this whole "everything is great because...unemployment" is pretty laughable currently. Many states are still struggling to process claims. FL has a current backlog of almost 1 million claims, which should be further exacerbated when over 40,000 Disney World workers are finally officially furloughed on Sunday. The extra $600 just started being rolled out this week in most states, although there are still about three handfuls of states that haven't and that certainly doesn't help if one's claim is still in backlog. Saying nothing of the meager state unemployment levels that many states have even if one is lucky enough to have already had an approved claim.
Some tenants, just as some LL, did a better job of planning/saving for unexpected circumstances. I feel for those on both sides. However, I think it's an insincere argument that some are making that tenants should have a 6-8 month rainy day fund, while LLs should be able to play hardball even if they decided to run their business with a huge debt load. The reality is that both sides should be better prepared. The reality is that some LLs will get hosed, but the majority, if they're willing and able to have a little patience and understanding will be made whole (although that could take up to a year in some cases).
So how else would you have places for tenants to rent. Without LL having a debt load. Loans to build apartments and houses to rent. Tenants would only be able to find a tent if they waited for people to do this all cash. And LL know the risks and plan for it. They know if problems they can sell the property and move on. You look at all the risk and plan for them. Providing free housing has never been one of them ever suggested by anyone. So you cant expect LL to have planned for that. And if they did rents would have been much higher.
A plan to provide free housing and give people free rent is not a foreseeable risk and has not happened before. And why should just LL be paying for the free housing. Why not all taxpayers. Has this ever happened with Grocery Stores or gas stations? People need food even more than housing.
So you could not expect LL to plan for this.
On the other hand Tenants definitely should have planned for this. No different than losing a job for all the other reasons that are foreseeable. They even teach this in high school. To have a 6 to 8 month emergency fund. Instead people live paycheck to paycheck. Even when they get a huge raise or much better job. They still dont save. They just spend more. This is well documented.
Not that hard to spend a couple of years saving since every place you look it is recommended. Dont make much. Then for a couple years share a 2 bed apartment with another couple. Have a flip phone vs a 1K iphone. Drive a car that is have the price of the one you have. Most that buy cars dont buy what is smart decision. Feel free to talk to any car salesman. They will buy the most expensive one they can get a loan on.
So irresponsible tenants ignore very common risk and take a gamble. And then expect a small group of responsible people that have planned for all recommended risk to be the ones to pay for it.
Also are you still working. Do you plan to donate your paycheck to help provide free housing?
Do you own a home. Is so why would you take on what you call a huge debt. When you needed to plan to help give others free housing.
Of course people investing in real estate can make more or less in the stock market. And for a lot they have their retirement funds invested in the rental properties. And have a average return of 10% a year.
Considering the normal risk I dont think that 10% is high.
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