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Updated almost 4 years ago on . Most recent reply

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Nathan Williams
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I was served a CDC declaration

Nathan Williams
Posted

This is in Indianapolis.  This tenant has been current on their payments up until their September 1st rent and sent a CDC declaration.  I been giving them a "temporary" 15% discount and have forgave any late fees on their rent since this pandemic began as a way to preempt any excuses of not being able to pay rent.  I have offered a free lease termination with full deposit return and they were adamant about not moving out.  

What suggestions would you have on how to proceed?

I was going to write up a letter basically telling them that I am now suspending the discount and late fee forgiveness starting next month and reminding them that this eviction moratorium will not erase their unpaid rent and fees so its in their best interest to keep paying and not fall behind.

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Greg Scott
  • Rental Property Investor
  • SE Michigan
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Greg Scott
  • Rental Property Investor
  • SE Michigan
Replied
Nathan:

I've written and re-written a response many times as I have a lot of different reactions to what you posted.

Have you talked to these residents?  I was not clear why you gave a discount.  Waiver of late fees was required by the CARES act that expired in July.  A discount was not required.  If your residents experienced a hardship, I have no issues with offering a discount, but there are lots of people that did not have any loss of income from COVID.  You paint yourself as pliable and weak if you  offered a discount, just because they MIGHT have had an issue.

The CDC declaration is something a resident gives to a judge during eviction proceedings and is not a substitute for paying rent.  In my opinion, the CDC moratorium is unlikely to survive a constitutional challenge.  (Unfortunately, that will take years to resolve.)  But, if you read it, the CDC recommendation doesn't have as much teeth as the CARES act did.  Plus, the resident is supposed to file the declaration in court and under penalty of perjury if they are lying. 

If you think your resident truly has been impacted by COVID, I'd encourage you to reach out figure out a longer-term solution with them.  If you think the resident is just playing you, simply follow the procedures in your lease.   We evicted two residents this week who had not been paying their rent, were not willing to work on a payment plan, and did not accept any offers to help them get set up with assistance programs.

BTW, it is September 18. You should have sent them a Pay or Quit notice long ago and already have a court date for eviction proceedings.
  • Greg Scott
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