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If you’re a landlord during a public health crisis how do you respond? It’s very possible that your tenants are feeling the effects of the economic downturn of COVID-19. There are many ways that people will lose their ability to earn an income and pay their rent, which means you as the landlord could miss out on rent.
On today’s show, we’re talking about possibilities for getting creative and finding solution that works for you and your tenants. We’ll contemplate how local governments could respond, options for waiving late fees, and how to offer compassion. Don’t miss episode 600 of Investing in Real Estate!
On this episode you’ll learn:
- How mortgages are being affected by the economic downturn.
- What you should consider with non-paying tenants.
- The importance of communication during a crisis.
- And more.
How Mortgages Are Being Affected by the Economic Downturn
Currently in Italy, banks are calling for a reprieve on mortgages. In the US, no such demand has been made, but the government is asking nicely for banks to do something similar. This may be helpful to you as a landlord IF you have a mortgage on your rental property.
What You Should Consider with Non-Paying Tenants
If your tenants are unable to work during this time, you can expect to have issues collecting rent. We know that most Americans have little to no emergency fund. So how can you run you business effectively while still being a compassionate human being during this time? Perhaps you can work out an agreement with your tenant to waive late fees. Another option is to reduce rent for a short period of time. The choice is yours, but remember this is where the human equation comes in to play. Certainly you need to pay your bills, but your tenant still needs a place to live. We hope you can practice kindness and find a solution that works for both you and your tenant.
The Importance of Communication During a Crisis
The worst thing you can do during this time is ignore any problems that may arise. If you’ve got a tenant who is unable to pay, it’s your role to communicate with them AND your bank to find solutions. This situation is uncharted territory, and we like to believe that most people and companies will do their best to make things right.
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