How to help tenants pay rent in Asheville LTRs after hurricane Helene

Question

I have 3 properties in the Asheville area: 2 LTRs and 1 STR. Still not 100% certain there is no damage to any of them, but so far it seems all is good. A friend drove by and said they didn't seem to have any damage but he didn't look into the details. I have 3 mortgage payments and enough cash reserves to cover all expenses for 2-3  months without tapping into personal savings. I was planning to buy my 4th property soon, but depending on how this goes it may have to wait.

For the LTRs: does anyone know if FEMA or other governmental agencies help tenants with rent payments in an area with emergency declaration? I looked and have not been able to find any info. There is short-term housing help for displaced people, but not rent payment assistance. I expect one tentant to struggle and he has 2 kids. I will definitely give me the flexibility he needs, but if I can point him to the right resources, that would be even better.

For the STR: I have 2 1-week bookings, one in Oct and one in Nov. This is high season in Western NC. I don't know what is best to support the area that I love so much. I can:

1. Talk to my property manager about canceling the 2 bookings and offer the house to people that have been displaced and can pay thru FEMA assistance at a discounted rate. This will impact my revenue and I've barely broken even in my first 2 years. This was going to be my best year. But, I am willing to do what is best to help people in the area.

2. Instead of that, I can keep the property in short-term rental mode in hopes that it helps the area get back to normal sooner. Lots of people in the area will be impacted without tourism economic activity: restaurants, tours, cleaners, property management, etc.

I am all about doing what's right with the STR but need to keep the LTRs making enough money to pay the bills. I would love to hear others' perspectives on what to do. It's a tough numbers vs ethics dilemma.

Adam Bartomeo · Answer

We have been through this several times before. Keep the property as a short-term rental. There will be an influx of workers to help repair the area and adjusters for all those file claims that will need short term housing. After 4-6 months transition to annual because Vacationers will be nonexistent and you will be stuck with zero income.

Dominic Nguyen · Answer

Be open and ready to be contacted by insurance / temporary housing agencies. Keep your properties open as there will be a huge need. I think it will be a big year for you if your properties were not affected since you will be offered a higher rental rate through private insurance housing.

Sean Macneir · Answer

You sounds like a solid man Ricardo. It looks like you’ve made up your mind and my only thing to note is that the STR income is probably much greater than your LTR. FEMA Should help with the living expenses of your tenants if their employment was directly affected by a local disaster. As for the STR If you want to you can one month it to a local displaced family that may need it and label it listed for “transitioning” and hold onto your November booking if you want to possibly keep the income. If aren’t by able to find a suitable means before month 1 ends and your booking cancelation timeline then maybe you let them stay, but seeking someone who understands that offer or it perfectly fits could be a win win for you and them. This would potentially allow you to still help, still capitalize and still stick to your investment goals and you consider your 4th rental.

Jaron Walling · Answer

Sounds like you're doing the right thing. I'm glad your tenants are okay! It's really sad to see everything destroyed. It's hard to watch the flood damage in the news because my wife and I have visited numerous times. We got married in Asheville two years ago.

FEMA rental Assistance covers the cost of monthly rent and essential utilities, gas, electric, water, trash, and sewer. It does not cover phone, internet, or TV.

I'd open up the STRs for locals in need. You're going to have cancelations because nobody OOS can safely travel.   We just cancelled our family vacation to Asheville. We were suppose to be down there on Oct. 14th, but have no way to visit due to the damaged roads. We were looking forward to taking our 10 month old son into the mountains. Hopefully your properties can benefit someone else.

"FEMA announced that federal disaster assistance is available to the state of North Carolina to supplement recovery efforts in the areas affected by Tropical Storm Helene from Sept. 25, 2024, and continuing."

"The President's action makes federal funding available to affected individuals in Alexander, Alleghany, Ashe, Avery, Buncombe, Burke, Caldwell, Catawba, Clay, Cleveland, Gaston, Haywood, Henderson, Jackson, Lincoln, Macon, Madison, McDowell, Mitchell, Polk, Rutherford, Transylvania, Watauga, Wilkes and Yancey counties."

Andi Morgan · Answer

We are in a similar situation with some rentals in Morganton. We weren't hit as hard as Asheville but it's still bad and some of our tenants are out of work for some time. I'm glad you posted this. We are following a similar path as you- flexibility and taking it day by day. It's such a sad situation.

Ricardo Carrasco · Answer

Brief update: no property damages. Tenants are struggling with water / internet / cell / power outages, but they are safe and had no property damages as well. Phew!

It is very hard to stay in contact with them. I will just be patient and give them the flexibility they need. I appreciate all the input and resources shared. I will review all of them and share them with my tenants as soon as possible. If anybody else has more input or resources to share, please do!

Sarah West · Answer

Ricardo, I love that you are thinking of the community and trying to balance out all options. I don't have anything in this particular market, but glad there are people like you that do. Good luck with everything!

Matthew Paul · Answer

My brother in law is in Lenoir north Carolina , not far from all the damage . He delivered some supplies to Ashville , he said words cant describe how bad it is .

@Ricardo Carrasco I wouldnt count on having vacationers at your STR for a Long time . Maybe get some insurance adjusters , or an insurance company putting up a displaced family .

Leslie Swart · Answer

contact SBA sba.gov/disaster.  they can apparently help you with loss of rent. They can also help the renters with loss of their personal property up to $100,000, I believe.

Sarah West · Answer

Ricardo, I love that you are thinking of the community and trying to balance out all options. I don't have anything in this particular market, but glad there are people like you that do. Good luck with everything!