How much rent

[fastfredracing]

Would you be willing to let slide if you were a landlord under Covid?
Deep down inside, I know I am a good person. I want to be compassionate and really have no desire to put someone out on the streets, especially heading into the holiday season.
On the other hand, this is a business. I have taken huge financial risks, and dedicated thousands of hours of my life making this biz go . I have kept up on all my taxes, insurance, and all maintenance during this mess.
The one and only reason, I hang on to this nightmare of a business, is in hopes , that I will be able to financially set my family up , when I finally cash out .
I took over the biz 2 years ago, and this year, is the first year, we have ever made a real profit .
I have one tenant just starting to drift behind, sneaking up on 3 months. She works 2 jobs, but lost her second job due to covid.
From past experience, once they go 2 months , you are never getting paid .
The other, has not paid in over 6 months now . Says she contacted covid, a few months back, and lost her job . She was behind before this .
I am confident that I am not getting paid at all this year from her, and she will never be able to catch up .
I also see on FB, that she got a new puppy, and her boyfriend has moved in.
I am not sure what will happen with the eviction moratorium, but if it lifts after the first of the year, I have some tough decisions to make .
I'd like to hear how my pelican brothers feel about this .

[smokintr6]

The one that just got a new dog and is letting people move in, sounds like she needs to go for sure. I can't stand watching people buy things they don't need when they cant cover their obligations

[craigster59]

Having been a landlord I understand your position and compassion. Thankfully I never had to go through the "Covid Moratorium" and continue to hold up my end of the business relationship while the other side gets a pass.

There are programs out there to help those in need. I am not one of those programs. Is the Gov't going to let you write the losses off on your taxes? Will the Gov't give you a low interest SBA loan to keep you afloat while you suffer losses due to their "moratorium"? Where's your piece of the "cheese"?

I'm sorry, business is business. I've been taken advantage of before with my properties. That's why I cashed in my chips and walked away from the table.

[KFC911]

IMO... you are a good guy, with a big heart Fred, and I mean that. I don't know what I would do in your situation, but sometimes you gotta do what ya gotta do....

Best to you as you figure this out.... and you will

[Evans, Marv]

I'm thankful I'm not still a landlord during these times. The tenant that moved her boyfriend in is probably violating the rental agreement, which should give you more leverage in that case if you want to use it. If I were still in the rental market, I would try to draft an agreement with defaulting tenants that insures they understand the conditions of their payment obligations after staying in a property and defaulting on rents. I think there will be plenty of people vacating units to avoid paying back rent, in which case the landlords will have to attempt to chase them down for those back rents. There will be some cases they'll have to weigh the effort and benefit against letting go & just rerenting the units.

[Rikao4]

punt her & BF..
keep the dog..

Rika

[look 171]

I haven't heard anything from the IRS about letting us take the hit off our tax. With this one person, I am jsut about 20k in the hole so far. He's works for a friend of mine, and owe me rent for over 7 months once. I was stupid and too nice thinking if he's evicted, I screw my friend because he's out scrambling looking for a place to live and wouldn't show up to work. Two years later, he caught up to within one months. Covid hits, immediately he stops again and I know he's getting pay from his boss but girlfriend's hours have been cut. No more Mr. nice guy this time around. My wife is pissed at me. Once it lifts, eviction starts, but that depends on how the law protects tenants in CA. I think they have a certain time to get caught up with their rent owed. Some goddamn left nutjob politician mention they have 10 years to pay it back. Yep, we are screwed royally by the gov this time around. Hang in there Freddy, think of the end of the tunnel. That is why you are doing this.

[look 171]

Originally Posted by Evans, Marv

I'm thankful I'm not still a landlord during these times. The tenant that moved her boyfriend in is probably violating the rental agreement, which should give you more leverage in that case if you want to use it. If I were still in the rental market, I would try to draft an agreement with defaulting tenants that insures they understand the conditions of their payment obligations after staying in a property and defaulting on rents. I think there will be plenty of people vacating units to avoid paying back rent, in which case the landlords will have to attempt to chase them down for those back rents. There will be some cases they'll have to weigh the effort and benefit against letting go & just rerenting the units.

I think we have a no eviction no matter the circumstances.

[creaturecat]

nice guys finish last.
sometimes it's worth it.
doesn't pay the bills ........

[3rd_gear_Ted]

I'm in the same situation and proactively went to my tenants and offered lower rent in exchange for NO missed payments going forward. I'm getting 75% of my past income, but tenants are still paying on time.
You have to always realize the WIIFM (what's in it for me) in a any business scenario and meet those needs. They need a roof over their head and I need income security. They couldn't pay what they did in the past, so I had to compromise first. Don't like it at all, but IF BUSINESS WAS EASY EVERYBODY WOULD DO IT.

[wdfifteen]

Can you get them to pay anyamount? I have a feeling you're screwed unless there is something in the lease about pets and maximum occupancy.

Glad I only have one unit left and I have a good tenant. If he goes I'm selling the place.

[Seahawk]

Originally Posted by wdfifteen

Can you get them to pay anyamount? I have a feeling you're screwed unless there is something in the lease about pets and maximum occupancy.

That was always my go to when I was a landlord. I need something, folks.

I got out because I was simply too nice: I know what you're thinking...hard to imagine.

The type of situation Fred is now end really affected me because I had a hard time imagining being evicted myself, what a horror that must be.

Again, I know all the scams but that was my burden and I carried it poorly.

Best of luck, Fred. I can tell you that compassion is a trait they are relying on. As WD mention, and other have pointed out, get something in writing and something monetary.

[john70t]

Originally Posted by fastfredracing

I took over the biz 2 years ago, and this year, is the first year, we have ever made a real profit .
I have one tenant just starting to drift behind, sneaking up on 3 months. She works 2 jobs, but lost her second job due to covid.
From past experience, once they go 2 months , you are never getting paid .
The other, has not paid in over 6 months now . Says she contacted covid, a few months back, and lost her job . She was behind before this.

I would have invested in a RE attorney who is familiar with local laws yesterday.

How long is that moldy bowl of yogurt gonna remain in the fridge?
When other tenants find out, what are they going to do?

I believe you can file a 1099 on them for the unpaid rent. (I believe they have to pay IRS taxes on this. Oops.)
It might require a judgement but maybe not.
It turns your missing rent into a 'debt income not received'...and a tangible business loss.
You get to deduct that missing income additionally from your total net.

Something like that. YMMV. I ain't no tax attorney.

[look 171]

Originally Posted by 3rd_gear_Ted

I'm in the same situation and proactively went to my tenants and offered lower rent in exchange for NO missed payments going forward. I'm getting 75% of my past income, but tenants are still paying on time.
You have to always realize the WIIFM (what's in it for me) in a any business scenario and meet those needs. They need a roof over their head and I need income security. They couldn't pay what they did in the past, so I had to compromise first. Don't like it at all, but IF BUSINESS WAS EASY EVERYBODY WOULD DO IT.

Is it rent controled? That puts the fear of god in me because once the rent is lowered, I am afraid they will make you stick to the lower rent when the dust clears.

[john70t]

I lowered my already low rents and got them re-signed into next year a long time ago. "I promise to pay X total amount in monthly increments"
Also let them know I'd work with them if their situation changed to find a good replacement tenant and keep my rental income continuous.
Also did some improvements to keep the place clean. All are happy and have been great tenants so far. They let me know.
I did not let late rents slide longer than a week or so, which turned out to be the mail system.

[Rot 911]

One of the happiest days of my life was when I sold my rental property. It was amazing how paying rent was a tenant’s lowest priority.

[sammyg2]

IMO, personal responsibility dictates that renters have enough saved for rainy day (ex-perts recommend savings equal to six months worth of rainy days), especially with the gubmint handing out monopoly money.
A legal contract to pay was signed and agreed to, and must be lived up to.
I might be willing to let a good renter fall behind on one month's rent and give them up to six months to fully catch up to paid in full, but no way in hell would I allow a renter to simply skip a month of three and just fergit about it.

But then again, I'm an old fashioned insensitive bastage.

[RWebb]

How hard will it be to find another renter better than the "one tenant just starting to drift behind, sneaking up on 3 months. She works 2 jobs, but lost her second job due to covid."

The other one is at the top of your list to evict.

At a min. talk to them both, remind them the bank needs to be paid or I will not be your landlord anymore and you will be dealing with a heartless corp. And I need something to pacify the bank.

[Mad Max]

Feel for ya, but I would let them know the eviction process is being mounted.

Bad policy always harms those doing the right thing. Problem is you are no longer represented.

Good Luck...

[Eric Coffey]

Originally Posted by fastfredracing

Would you be willing to let slide if you were a landlord under Covid?

RRP might be worth looking into:

https://www.phfa.org/pacares/rent.aspx