Behind on Rent Payments Due To Covid19 in NYC

[Natasha Singh]

Hi Bigger Pockets Family,

My husband and I have been hit quite hard due to Covid19. He lost his job and my job being commission based has not been as financially stable as it has in the past.

We currently rent in Brooklyn and owe an outstanding amount of $12,000 +. We are organizing to move back in with my husbands sister so we can start rebuilding our savings. 

When I informed my land lord that we were trying to sort out other living arrangements they said that we still have to pay the full amount or go to court. 

I am aware that NYC is a renter friendly market so I wanted to know if anyone has been in a similar situation or knows of any solutions that could result in us paying a fraction of the outstanding amount or being able to write it off all together.

Feel free to respond to this thread or inbox me.

Appreciate your help in advance.

Natasha


 

[Greg M.]

He has two options: 1) You move out and promise to pay the amount due or a lesser amount agreed upon. 2) He goes to court and gets a judgment for the full amount.

Option 1 he is taking you at your word that you will pay him the money you owe. Unfortunately, the lease you originally signed was your promise to pay and you broke that promise. COVID or not, you made him a promise to pay and you failed. He has no reason to believe you that you will pay once you move out. It makes total sense that he would go to court. 

Depending on the location and the aggressiveness of the landlord, he can get a judgment for the total amount owed, possibly interest on the balance until paid off, legal fees, re-rental costs, and can likely obtain a garnishment against both your wages and a levy against your bank accounts, all the while destroying both your credit for the next 7 years.

Your best bet is to make an offer to the landlord. He'd probably rather have $6000 in cash now than chase $12000 after court.