I don't have a heart, just in reality

[Josh Bakhshi]

Between my commercial and residential properties, over a dozen tenants have already reached out to me about upcoming rents.  If this is the first time tenants have issues paying their rents in your case, consider yourself very lucky and Kudos to you for finding excellent people.  I have not been so blessed, so I have created a process. The process is to achieve two goals.  First is to collect rents and second to keep the property in good condition. Feel free to use all, part or none of it.  But please tell me what you think.  Here goes...

1- Listen to them.  Give them the opportunity to talk.  Understand it isn't easy for them to come to you and share their situation.  Thank them for being proactive.  Show empathy.  

2- Ask them questions to get a better understanding of their situation.  Don't belittle people by saying "Why is this my fault" or "Why didn't you plan for this".  You can use this part to make sure their story is consistent.  

3- Share with them your position.  This is where I would tell them that I have investors (I never tell them that I am the "owner") that are depending on the income (rent) to pay debts and their livelihood. I want to let them know that they are not dealing with a "big corporation" with billions of dollars in the bank.  They are dealing with real people that worked, saved and took risks.

4- Find out how much they can pay.  Now you showed that you care about them, their situation and they know that you are human. This is what everything comes down to.  Personally, I have asked for half of April and May rents paid on time and the balance to be paid out over the remaining term of the lease.  One lease I had to give an extension.  I have also asked them to do extra things around the properties while they are home.  Things like deep cleanings, clean gutters, change air filters, paint (if I buy the paint).  All of these improve their standard of living while my properties are in better shape and I have people who have a better connection to the property.

Now you are asking why should landlords work w/ tenants when we all have contracts that should be lived up to?  Good question.  No, I'm not doing this b/c it's nice to be nice.  I'm doing it b/c business is business.  For the most part is that YOU HAVE NO OTHER OPTION!  Most places wont evict for next 60 days, chances to find people in better situation is not likely, getting some rents with potential of getting all later is better than getting none now and none later and if they see you like a jerk then they wont care about your property.

If landlords are living rent pmt to rent pmt, then we are in no better position than the tenants we criticize.  In fact we are in a worse situation as we have to replace roofs, change HVAC, fix appliances and make sure the properties are always in good shape.  WE ARE THE PROFESSIONALS.  Now is the time to act like it.