covid related late rent or partial payment

[Jim Adrian]

What policy or procedure are you using if your tenant won't be able to make rent due to being affected by covid in this second wave?   This winter will be bad.

I have a tenant that informed me today Dec rent will be short and or late.  If its wasn't for covid I wouldn't cut them any slack.  These tenants have been great and I would like to keep them around.  I know I'm going a bit soft due to xmas coming and being a caring person.  After having dealt with covid for 5 weeks in my house already, l know the struggle is real for people.  I am considering taking $300 off rent for this month and writing the loss off.  But also telling them any future covid rent issues will be at the set discounted price.   I know they are not taking advantage of me.  She did offer to continue to repay but I think its just going to put them farther behind.   My bottom line is if I can get the mortgage covered and its not sitting vacant, then I'm happy during this pandemic.  I tried searching but only found post around April and people playing the stimulus card and now that's re-relevant.  

[Nathan Gesner]

@Jim Adrian @Brandon Rush

As long as the tenant is communicating, you are on the right path. Especially if they initiate in advance and without prompting.

When a renter indicates they are struggling, offer to create a payment plan that will allow them to catch up. In my case, I put it in writing without a bunch of legal jargon but make sure it is specific, trackable, and enforceable. I also require them to state why they will be late and often ask for some evidence (layoff letter, employer number to verify hours were cut, etc). Example:

Due to reduced hours at Bubba's BBQ, Tenant will be unable to pay her $800 rent on time for December. Landlord and Tenant agree to the following plan:

Pretty simple example. You need to really talk to the tenant and make sure they have a concrete plan in place, then put it in writing so it can be tracked and enforced. If you just tell them they can pay "whenever able" then it will stretch out too long and you'll find them months behind. I also require the weekly updates from the tenant to ensure they aren't forgetting or ghosting. Make them initiate! You shouldn't have to chase them down.

If they're serious about being a good renter, they'll agree to this.