Introducing the subject of paying back rent during Coronavirus

[Chris Best]

I wonder if you had any thoughts on my situation.

I own a single-family home in Culver City, and it is currently rented to two tenants.

My tenants have indicated that they have reduced salaries and are only able to pay 75% of the rent. They sent me a letter to let me know this is what they were going to do without prior discussion of that reduction with me first. I called them along with my property manager expressing my understanding of their situation, but explained that this is the type of thing that has to be discussed before one side makes a decision contrary to the lease agreement. I tried to get an indication of their intentions for the future once employment and financial things turn around. They indicated that they didn’t know what is going to happen in the future.

I told them that timely communication is key and required, and to let us know any good or bad news that comes up. I explained that we would talk in a month.

In this next call, I need to introduce that they need to pay the remaining balance of the rent eventually.

The lease expires on November 1, 2020. I want to give them time to pay me back, but I also worry we will have no leverage if they decide to move at the end of the lease. I would like to get the lease settled by September.

I am not sure how to proceed. They have been good tenants who seem to enjoy where they are living.

According to Culver City Urgency Ordinance, tenants have up to 6 months following the expiration of the local emergency period to repay any back due rent.

I and my manager want to have a conversation with the tenants and then follow up with a letter of the proposal we agree upon. I am not clear of the legalities of how to offer up the idea of paying back the remaining rent and how to offer up any proposals.

Any thoughts would be appreciated.