Rental challenges and Covid 19

Rental challenges and Covid 19

Philadelphia, PA · Member since 2015 · 4 posts · 0 votes

Hello everyone,

I hope everyone is safe and sane.

I own a couple of properties. One of them, the tenants contacted me to let me know that they were not going to renew the lease because he was laid off his job, their lease is over May 31st... He said he is collecting unemployment, didn't mention anything about not being able to pay rent. They wanted to know if while this situation resolves they could go month to month while they are able to safely move out (I think they were planning on moving out of the state). Which would put push closer to the fall and that is when renting starts getting more difficult. What would suggest I do? I don't want to end up with an empty property in the winter. 

Second property... They signed a 2-year lease in August 2019. They contacted me today and told me they are separating and that he lost his job. He said she wants to stay in the property and they hope we can work something out so I don't end up with an empty property in the middle of this. I believe he thinks he can be out of the lease because he lost his job due to Covid 19 and they are hoping I lower the rent so she can stay. She would find a roommate once the pandemic is over. Any suggestions?

Thank you,

Joseph

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  • Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    For the people wanting to go month to month, I'd let them do that. Most of the tenants we've switched over to month to month stay much longer than they anticipated. As long as they're paying their rent and they give you adequate notice, it's better than a turnover. (properties can rent any time of the year)

    Regarding the marriage breakup, I'd probably tell them they need to vacate if they no longer have adequate income to fund the rent. I wouldn't reduce it to accommodate their situation as that's not your problem. Sounds like they should stay together for a couple more months. Right now you wouldn't be able to "evict" them but I doubt they would want that on their rental history. Her not being able to pay rent doesn't have anything to do with the virus unless he was going to pay it for her and you didn't indicate that was the case.

  • Philadelphia, PA · Member since 2015 · 4 posts · 0 votes
    6y

    Thank you for your suggestions. 

  • Philadelphia, PA · Member since 2015 · 4 posts · 0 votes
    6y

    What if they say that because he lost his job due COVID-19 they are no longer able to pay the rent and they want to be out of the 2-year contract? Should I let them go without any repercussions? 

  • Knoxville, TN · Member since 2019 · 111 posts · 57 votes
    6y

    I'd just let them go. Better an amicable split (with you, if not between them), so you can get in, verify no damages to give them deposit, then to have them hang on for months and not pay (and maybe do more damage).

    There are people still looking for housing and ways to show/sign leases with minimal risk, so better empty and rent it out again than months of known no pay.

  • Philadelphia, PA · Member since 2015 · 4 posts · 0 votes
    6y

    Thank you Karen for your suggestion.

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