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Tenant not able to pay rent because of Coronovirus Pandemic
Hi,
My tenant is not able to pay rent because he claims that he got temporarily laidoff. I have a mortgage to pay on the house which is the almost same as the rent about $2100.
I am in a tough situation. What are my options?
Can I get him evicted in this coronovirus situation?
Does the tenant need to provide proof that he is laid off? Does he need to show that he is looking for job elsewhere?
I can only give April rent deferred, but I dont know how long I will have to sustain this.
Please let me know what are the options and paths I could take.
thanks
Pradeep
#3 Managing Your Property Contributor
@Pradeep A. You probably can't evict him as most places have banned that. Ask him what he is able to pay explaining that you can't waive the entire rent for April and work out a payment plan for the rest. Many governments are rolling out help for those who lost their jobs in addition to an unemployment benefits (don't know if you get that in the States). Ask for a letter from his employer (assuming they are open). Then once he gets government help, he can start paying back the rent that he owes you...get it all in writing.
@Pradeep A. What @Theresa Harris says, she knows good stuff.
Most places have banned evictions at this point. If it is a Fannie Mae/Freddie Mac loan, call you loan servicer, as you may be able to delay payment. Also, if you are holding 1 months security deposit, you may be able to use that, but check your state laws.
Thanks @Theresa Harris and @Michael King. My tenant is a well to do business owner. He makes upward of 20k a month. I understand that his business may be suffering a bit, but I dont believe that he is not able to pay his rent. In this case do I still follow the procedure you have laid out?
@Russell Brazil Thanks for the suggestion. I will look into those options.
if the person has a 401k, he/she can can get a hardship withdrawal.
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The ONUS is on the owner to take care of his Business. If tenant say he not going to pay, im pretty sure he isnt going to pay.
Im still thinking people are in Denial. I have 2 properties dark, its going to happen.
@Pradeep A.
You may want to pass this article onto him. It appears they are loosening the regulations for unemployment and allowing temporarily laid off people and 1099/freelancers to collect unemployment and also giving an extra $600/week onto the u employment checks. If he is able to apply it would help him pay his rent.
https://www.forbes.com/sites/advisor/2020/03/25/what-you-need-to-know-about-expanded-unemployment-benefits-for-covid-19/
@Pradeep A., for you and your tenant there is available SBA /FEMA emergency loans. I just heard that the feds are hoping to have the banks be able to approve and fund the loan the same day. https://disasterloan.sba.gov/e...
Also call your mortgage provider
Why are people assuming unemployment money is going straight to landlords. If i were a tenant and had no money and the president said no evictions for awhile, last thing i would do is pay rent.
The argument is Tenant doesnt want eviction on record. Fast forward. I the future landlord would give a tenant whose only RED MARK was a 2020 eviction a Mulligan.
Originally posted by @Account Closed:Why are people assuming unemployment money is going straight to landlords. If i were a tenant and had no money and the president said no evictions for awhile, last thing i would do is pay rent.
The argument is Tenant doesnt want eviction on record. Fast forward. I the future landlord would give a tenant whose only RED MARK was a 2020 eviction a Mulligan.
Exactly what I was thinking.
Once tenants catch wind that evictions are OUTLAWED, good luck to landlords
As far as I am aware, you cannot evict during the corona virus epidemic. I have read fellow members mention this. Payment plan is a smart idea. Try and get confirmation that he has been laid off.
@Pradeep A. You say he is temporarily laid off, has he been given a date he will be returning to work yet? Assuming he hasn't I would ask the tenant to come up with a solution on how to handle the situation because you still expect the rent to be paid. From there work with them to come to a solution that involves them paying you.
I think it is important to have them put some effort into figuring out a solution, this way they can show you they actually care. Dealing with a person who cares will make a conclusion a lot easier to come to.
@Pradeep A. How can your tenant be laid off if they’re self employed? Did they fire themselves??
@Michael Noto. Someone can’t be laid off if they’re self employed
Thanks everyone.
1. My tenant is well off making more than $250k a year. He works for his own business.
2. He has produced an email from his company saying that there is a suspension of all salaries for executives in his company for 2 months.
3. He also says that because he is not laid off, he can not apply for unemployment benefits.
So I guess, he is playing victim here and I feel like I have no choice but to accept his story. I can only threaten an eviction when things come back to normalcy and I dont see that happening anytime soon.