Tenants have not paid rent in two months, NY has no evictions

[Jacob Altmann]

I got started 2 years ago and own two single family rentals now. The renters in the one house have not paid any rent in the last month and a half. The other house has paid a partial rent for September. I am struggling to meet my expenses due to the non payment. NY state has no evictions till January 2021. What can I do? What leverage do I have? Both houses are on a month to month lease. I appreciate your answers and help. Thank you.

[Nathan Gesner]

Far too many Landlords are giving up without even making an effort to keep renters on track. You may not be able to evict but that doesn't excuse the tenant from making an effort.

1. Let your tenants know - in writing - this is a temporary ban on evictions. It does not erase their debt! Once the ban is lifted, they can be evicted and you can seek a judgment for everything owed.

2. If you can't pay your mortgage, the property goes to foreclosure and they won't have a place to stay. Your tenants better help keep you afloat.

3. Provide them with a list of assistance programs. I'm in a town of 9,500 in Wyoming and even we have assistance programs. One of my tenants applied in early September and just received a payment equal to two months of rent plus late fees. Others have received assistance from churches. Some have used pay-day loans or credit cards or borrowed from family.

4. Saying they can't pay isn't enough. They should have to provide evidence they've lost income. When one of my renters claimed her restaurant was closed, I called to confirm. They should also provide evidence they're applying for assistance and making an effort to catch up. You can create a simple form or instruction letter, then require them to send you an email update every 7 - 10 days. Tenants that stop communicating are bad news!

5. If they have some income, you can always set up a payment plan. Even $100 a week prevents them from getting too far behind and shows they're making the effort.