Updated: May 21, 2020
"Sir/M'am this month may be pretty tough to pay you rent."
We're pretty sure most tenants won't come to you saying this...
Are you a landlord and have tenants that may be at risk defaulting on monthly payments? Stay calm, but be proactive.
Here is a guide to decrease your risk as landlords during these uncertain times.
Call each of your tenants and just LISTEN to their current situation.
ASK if you can do anything to help them during these times. You'll learn a lot from this question. FOCUS on their PRODUCTIVITY level and their NEEDS.
This is a great time to REASSESS your tenants and an opportunity to RENEW leases.
If they are good tenants and you know they'll be on their feet in no time, NEGOTIATE better terms or EXTEND the longevity of their contract.
Even if they don't ask, help them make a GAMEPLAN on how to succeed during these uncertain times.
Under the CARES Act, the majority of U.S. residents will receive one-time cash payments from the IRS. Also, learn about your local government relief packages and EDUCATE your tenants on how they can have some extra income coming in during these upcoming months.
Leave the call with PEACE OF MIND that they are being proactively healthy during these times as a family and economically.
BE CAUTIOUS about how you approach them with options because you don't want to mention they can miss rent.
If the time comes and they can't afford to pay rent, ask them how much they can pay. SOME INCOME IS BETTER THAN NONE! Having income coming in to cover your mortgage or other expenses is important for the long run of your business and or investment.
CREATE A FUND OF RESERVES. As a landlord, you can apply for government assistance through SBA.gov. They are offering multiple funding options for those seeking relief during these uncertain times.
SUBMIT AN APPLICATION for the Economic Injury Disaster Loan Emergency Advance. This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. Depending on the structure of your investment(s), you should qualify for this grant.
No Proactivity, can be Painful
Unfortunately, for those who are seating on their hands, they will face difficulties throughout their portfolio or those they manage. So, take ownership of the situation. This is a time for all of us to be human and empathetic. This is not the time to be aggressive nor unrealistic with your tenants. What we're all experiencing as a civilization is not normal. However, it is not time to sit back and not do something to protect your hard work and investments.
Here in Florida, the Supreme Court has set a ruling on evictions and foreclosures until April 17th, with opportunity for extensions to give relief to Floridians who wonder how they can shelter in place if they were to face a burdening time. The 67 clerks of courts in the state of Florida are diligently working on how they will suspend, or give clerks the option to suspend, issuing writs of possession during this phase.
In conclusion, take the time to analyze what the best strategies are to help tenants and protect your assets. If you need any guidance, we are here to help you mitigate this crisis we are all living in. Feel free to contact us or schedule your complimentary investment consultation.