Between so many people living paycheck to paycheck and others looking for a free ride, this is going to be a major problem

They can pay the rent with the $1000 Trump is sending everyone. lol

The idea that renters think they owe you anything is absurd. That 1000 will go to booze and smokes ... or a new pit bull.


The only hope that can be put together is an unemployment benefit that goes directly to landlords bank accounts. otherwise the pit bull and smokes market is about to sky rocket.

expresswrittenconsent said:

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Seems like a known cost of doing business. Slumlord game ain't for errybody.

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I'd venture to say that "entire economy shutdown because of global pandemic" isn't really on the typical risk sheet.

expresswrittenconsent said:

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Seems like a known cost of doing business. Slumlord game ain't for errybody.

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The known cost is dealing with eviction if a person stops paying rent. You don't plan on the government preventing that.

jmazz said:

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I don't know yet b/c I don't manage my rentals but 90% of my rental portfolio is 'student rentals' (in B/CS) and now that the kids have no reason to physically be here to attend college...I have no idea what's going to happen. I suppose I should check in with in mgmt but my guess is they won't know much until April due date rolls around as March rent should've been paid before this all blew up.

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When this is over and A&M goes to on-line classes permanently for a significant number of majors, there will be a lot of slumlords hurting in College Station. There is no reason why A&M can't be a e-commuter school for most students.

Martin Q. Blank said:

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expresswrittenconsent said:

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Seems like a known cost of doing business. Slumlord game ain't for errybody.

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The known cost is dealing with eviction if a person stops paying rent. You don't plan on the government preventing that.

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And if you built that into your pro forma you would never again find any deal, anywhere, that would even be profitable enough to even get to the point where a sensitivity analysis is needed.

Acts of God happen. You reasonably try to plan for them and time your investments to survive when they do. Acts of an absolutely idiotic response and forced shutdown are never planned for, because they should never happen.

The trolls are out for this thread

IF they are a good tenant, try to work with them (assuming they got laid off or couldn't work).

Maybe suspend/reduce rent for a month or two and then have them pay it back over the rest of the year.
Example: $1,000/month rent. Reduce payment to $500/month for April & May due to Virus/layoffs; Rent rises to $1,145 for the months of June-December.

Your annual income is the same, but you've given them a break in a time of need and show you care.

Now, if your tenant is a bum or is just expecting a handout, then i would be WAY less likely to work with them.

"IF"

Everyone is a crook when given the opportunity.



When the market fell early last week I sent a note to my tenants and offered 20% of rent b/c of hard times. One that is a school teacher told me she should not have to pay even if she is still getting paid. This was before eviction bans. Joke is on her - after this I will be evicting her for having three dogs in the unit with no disclosure.


She will not pay just because she thinks she can. I have one other that is fringe...the others will be paying as they are long term tenants that will take the discount and be happy for more years.

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One that is a school teacher told me she should not have to pay even if she is still getting paid.

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Odd. We've only had one tenant contact us so far - also a teacher. Very disappointing & surprising. He will still be paid & admitted that. Said "just thought I'd ask".

I know we can't evict, but do we have to renew leases when up? How I handle those will depend a lot on how the current leases are handled by the tenants. If you still have your job, I think you should continue to pay your bills - I have to. We do have one tenant that I am trying to plan for because I know she will have trouble - both with her job & with her health, but I can't carry everybody.

I agree with you. This test run at the University of Phoenix model might change college and college towns going forward. One way to control the cost of college is to eliminate housing and related costs.

I was in BCS last weekend and did a good bit of driving around town. I couldn't believe the number of for lease signs in yards.

jja79 said:

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I agree with you. This test run at the University of Phoenix model might change college and college towns going forward. One way to control the cost of college is to eliminate housing and related costs.

I was in BCS last weekend and did a good bit of driving around town. I couldn't believe the number of for lease signs in yards.

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You think kids are just going to live with their parents until 22 years old?

Part of being 18-22 is learning to handle all that on your own. You're not eliminating costs of housing.

Last week we decided to open communication & send out a brief text to our 13 tenants so we'd have an idea of what's coming April 1. Very positive replies so far & results as follows:

1) A tenant we have never been crazy about replied with BS about being out of state and not being able to travel due to lock down of Texas. We informed him that he is still free to travel thru out the country - highways are open. He is not in a lockdown state and prior to this mess, he already told us he'd be moving - just didn't know when so this is not virus related. He wanted to not pay since he's not here - essentially using his apt as free storage. We told him we'd let him out of his lease with no penalty if he's out by April 1. Saw his parents over there yesterday moving stuff out. We'll see. We'll be glad to see him go & we are not going to put that unit on the market until this settles down. We have his deposit if they tear anything up.

2) Our elderly tenant that we suspected would have difficulty, due to a number of issues we knew about prior, sent us a very heartfelt text saying that she'd appreciate anything we could do. When she moved in 3 years ago, she paid 1st, last & deposit upon move-in. We are dividing her last month rent and applying it to April & May - cutting her payment in half for those 2 months. Hopefully she will be in a better situation after that. If not, we'll do the same with her deposit. We have no concern that anything is damaged or that she would ever damage anything out of spite no matter what happens. She's been in there long enough that when she does move out, we'll need to do a mini rehab anyway. Her partial rent covers the expenses on that property. She was beyond grateful and we will do what we can to keep her in her home.

3) Even our teacher that "joked" about not paying or "getting a discount" replied with "can't argue with that".

That's where we stand.

No issues so far. I won't mind working with people but will not be taken advantage of. The government checks everyone is getting is enough to cover one months rent.

I suspect that if the courts fail to do their job self help evictions will become the norm real quick.

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If it's an organized non-payment where both rent and mortgages get a temporary suspension, it all evens out. If it's unorganized and the rent doesn't get paid anyways, the landlord is in a worse spot.

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I can understand banks and mortgage companies modifying loans and adding skipped payments to the end of loans. If tenants are allowed to skip rent payments they probably will not make up those payments - my guess is that they will just move out when it's time to make up those payments or when their lease is up. Chances of getting back rent current is basically nil. IMO