As the coronavirus pandemic tears across the world, the precautions we take to combat the spread have economic consequences. Many are suffering financially at this time, and that can mean hard times for your renters and late rental income for you.
Federal stimulus aid is currently pending passage, but in the meantime, here are some ways you can help your tenants through pandemic:
Encourage tenants to reach out to you – just not physically.
One of the best steps you can take to giving your tenants some relief is to let them know you are open to hearing from them about their situation. Initiating contact is important because it can both show your tenants that you care and set expectations for what might be possible. Additionally, it allows you to determine exactly what to expect, so you can plan and budget accordingly.
At this time, your income is likely to be impacted just as everyone else’s is – most tenants will understand this. What you want to do is establish that tenants can call, email, or chat with you through an online platform about their situation if they have concerns about paying rent because of recent economic difficulties caused by the pandemic.
You can then address their situation personally to find a mutually positive solution.
Offer extensions on the rent due dates or waive late fees.
You do not have to offer extensions on rent or waive late fees for all of your tenants. However, if a tenant contacts you with concerns about their ability to pay rent, these are possible solutions that can give your tenants peace of mind while they work through these difficulties.
A 10 or 15-day grace period without a late fee can be immensely helpful for a struggling tenant, allowing them to find another job and hopefully accrue at least a portion of a pay period’s wages. Since you will still get your full rent, you aren’t losing anything other than the late fee, a marginal sacrifice when helping out a few of your tenants during these unforeseen circumstances.
Help struggling tenants find sources of employment.
If your tenants lost their jobs because of the shutdowns the pandemic has caused, offer to help them search for employment and make sure they know how to file for unemployment insurance in your state.
You can start this process now by searching through Indeed, Monster.com, Craigslist and other job sites. Make a list of general options that any of your tenants might be able to apply to – these might not be perfect and probably pay a lot less than what they were making, but at least it’s a step towards solvency during these difficult times.
Then, brush up on what it takes to apply for unemployment insurance. You can provide your tenants a link to your state’s Department of Labor portal along with some helpful instructions.
Having a list of jobs handy will also help tenants in this regard because most states require those receiving unemployment insurance to be actively applying for positions.
Be an accessible, considerate landlord.
No one could have predicted this pandemic nor the economic response to it, let alone prepared. We all are experiencing difficult times, and right now, you’ll have tenants that will need you to give them some leeway.
Showing your tenants that you are willing to consider and help them is not only the most financially logical course of action, but it’s also the right thing to do. Help where you can, but no one is asking you to give more than you are able.
Stay safe and remember we are all in this together.
For more information on real estate and property management during the coronavirus pandemic, contact 208.properites today.