Coronavirus and late or no rent payments

[Arthur P.]

What is the plan when tenants can’t work and cannot make rent payments?

It has already started for me.

[Brian Boyd]

Arthur, 

I was speaking with my wife about this very issue this morning. We have not yet felt the effects of the hit our tenants will feel if they cannot or do not pay their rent. However, we have decided, and this is not for everyone, that we will require them to forfeit their deposits for the month they miss. If they miss again, we will evict. 

Like you, we finance our properties and the banks are not going to allow us to miss paying our notes. It's a business transaction. Thus, we treat our tenants the same way: it's a business transaction. They have a place to live in exchange for paying their rent. 

This is not a hard line, it is a real world line. We don't get to miss our house payment. We have saved for these possibilities. Once they make their lack of preparedness my problem, I will deal with it like its my problem. That may mean they are without a place to live, which is not my problem. 

Others will disagree with me, but others are not paying my bills or paying for my properties. You need to do what is best for you. 

Good luck!