Portland, Oregon annouces FREE rent; no evictions due to Virus!

[Todd Powell]

My properties are south of Portland, Or but today they announced that tenants cannot be evicted if they fail to pay rent in Multnomah County. Further, they are asking the Oregon Legislature to step in and mandate this state wide. I feel like they have not thought this through, as the evil landlords still have to pay their costs, including mortgages, ins, utilities, ins, etc.  Do not get me wrong, I realize this is unprecedented times, but don't you think they would give landlords the same relief? They are stating that the tenant would have up to 6 months to pay the entire rent, but realistically if they cannot pay the next month's rent how will they ever get fully caught up? I am not heartless, but I am 100% commission sales in my W2 and my income is dropping like the rock, and where is my relief? I will be fine here, but posing the questions if other states will follow, and also within the next couple years I planned on living on my RE cash flow. Down the road, what would I do if my state says you can live rent free with no security blankets for the landlords? This seems to be pretty unreal times folks. Your thoughts? 

[Karen F.]

I posted a warning of this about 6 weeks ago, that tenants would be unable to pay rent if/when the pandemic hit.  My state, CT, put a moratorium on evictions and utility shutoffs about a week ago.  I wouldn't be surprised if it lasts six months.

Here is what we did today.  We have a little over 30 units.  Today we texted all our tenants.  The 3/4 who are not on section 8, we checked in with, asking if they were in trouble (all the restaurant workers are out of work).  We directed them to apply for unemployment immediately, and informed them that they could apply even if they were only on reduced hours, not totally laid off.  We directed people to apply for food stamps, Medicaid, and in cases where there was a disabled relative who was receiving nursing care at home, but teetering on needing admission to a nursing home, that they could apply for paid relative care from Medicaid to keep the relative out of the nursing home.  We advised cutting to basic cable (reduces bill from $200/month to $35/month).  We advised holding off on utility bills, due to suspension of shutoff.  We let them know that we care about them - and we do.  Most of our tenants are good people who pay their rent every month, and support us.

The ones who are on Sec 8, we advised to immediately notify their worker if their income goes down, so that their share of the rent will be adjusted downwards.

I'm hoping that this advice to immediately apply for all government assistance possible will help them to keep being able to pay rent during this crisis.  One cannot apply retroactively for unemployment - it starts only when you apply.  Same for food stamps.  We offered help to all who needed it, in seeking benefits that they are entitled to.  The tenants seemed to appreciate it.  No one said that they expected to not be able to pay rent next month.  Everyone has already paid this month.  Thank GOD we just got out a bad  non-paying tenant on March 7th.  A week later, and we would have had to carry her for I bet the next six months!