Announcement

Collapse
No announcement yet.

Are you reducing rent for your tenants?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #46
    Originally posted by mapplebum View Post

    Anyway,
    burritos I get your wife. I could see myself being inclined to do something like that but only if we didn't rely on the business for our own finances. What about encouraging her to come up with a system to address and support need without a unilateral handout. (For reference, I'm deferring my self employed income through May but that's only a couple thousand)

    Yeah, good suggestion, but she's set on this move. The money lost in a month is not much in the scheme of things. Just a small derailment on my pay down strategy. And she has offered to write me checks to cover the expenses, but I don't need it. If it makes her feel good, I suppose it'll be worth it for this household.

    Comment


    • #47
      Try to negotiate your mortgage, insurance, utilities, and property taxes down. Whatever percent of your operating expenses you are able to negotiate, pass on to the tenants if they ask. (Hint, you're not going to get a 25% reduction in your ongoing expenses.)
      Last edited by Hank; 04-26-2020, 08:02 AM.

      Comment


      • #48
        I spoke to one of the management companies today and they are finding a lot of resources for tenants available to help pay rent with a lot of churches and other agencies (United Way is one). These agencies are getting $ from the gov't to help tenants. The tenant still has to make some effort to pay part of the bill but only a small portion and then they pay the landlord the balance or at least a good chunk of it.

        Comment


        • #49
          Originally posted by burritos View Post
          Of course I'm not going to evict anyone due to loss of income during these unprecedented times. And I'm willing to cut back rent on a case by case basis. But my wife wants to preemptively just lop of 25% off the rent for all 4 tenants regardless if they need it or not. Her thought is that if the tenants have more money, they can spend more money which helps out local economy, blah blah blah. I think doing this would still cover PITI, maybe 95%. As the tightwad of the family, I'm not super open to this idea. But because she's the wife, it's happening. Thoughts? Am I an arsehole or are you on my side and thinking WTF?
          Cutting back on rent by any amount is a bad idea. Once you have set the precedent, it will be used in the future for non Corona situations and you might be powerless to say no once you have said yes in the past.

          One of my tenants paid on time. One always paid a bit late, with a late fee. Yesterday he finally was to pay and wanted to see if we can not enforce the late fee. I said no but will, just this time, make the late fee a flat $5 per day from the 6th onwards. He was grateful for that and paid the extra $100.

          Glad I don't like in ************************ holes like Oakland where people who can pay, do not pay.
          Kamban
          Physician
          Last edited by Kamban; 04-27-2020, 09:29 AM.

          Comment


          • #50
            Maryland had 50 legislators sign and submit a letter to the governor requesting a moratorium on rent and mortgages. I'm trying not to get too jazzed up over any of the less than life and death issues right now but this would not be a positive in my opinion.

            Comment


            • #51
              No residential, but the office park I'm a minority holder in gave two months free to our two non medical tenants...a cafe and a massage parlor. If they go under, it'll cost us WAY more than a measly few thousand.

              The docs can afford it (and 3 of 5 are owners anyhow).

              Comment


              • #52
                Originally posted by StateOfMyHead View Post
                Maryland had 50 legislators sign and submit a letter to the governor requesting a moratorium on rent and mortgages. I'm trying not to get too jazzed up over any of the less than life and death issues right now but this would not be a positive in my opinion.
                I wonder what will happen to our 5.25% top income tax rate and whatever your local county tax rate is after the COVID situation ends...

                Comment


                • #53
                  We’ve really been managing on a case by case basis, asking questions such as:

                  -how much revenue are they losing, document if needed
                  -do they really not have enough cash reserves to pay 1 month of rent
                  -are they actively working with their bank and applying for relief and/or PPP or trying to put it all on the landlord
                  -are they really forced to shut down? A lot of businesses are “essential services” per government guidelines. Some business are making more (grocery, liquor stores) and a lot are open or can be (real estate, cpa, lawyers, insurance, etc)

                  Payment plans have been used in some cases:
                  -document in writing, for one month we’ve just been doing email, this will hold up for the small stuff
                  -we’ve asked them to commit to what they can do, when they can do it and why. Are they trying or not? Don’t want to be floating around with no plan
                  - we’ve been waving late fees generally as long as they are communicating
                  -we haven’t been waiving any rent, especially NNN for taxes, insurance and/or if mortgages are due. No relief on insurance, maintenance or property taxes in sight for the owners
                  Noah Swank, Real Estate Investment Advisor
                  n[email protected]

                  Comment

                  Working...
                  X