Letter for Tenants Unable to Pay Rent Due to Coronavirus

Thanks Brandon Turner for the March 22, 2020 Blog Post, "Are Your Tenants Unable to Pay Rent Due to Coronavirus? Here’s What to Do." The post really got me thinking ahead of time about how I plan to move forward if, and when, Tenants are unable to pay rent due to Coronavirus.

As a result of contemplating my options for more than a week before April rents were due, I had plenty of time to send a letter to Tenants regarding the coronavirus, repairs, and the payment of rent during this crisis (based on a letter in a different Brandon T. Post - 03/25/20). I also posted local disaster assistance contacts in our building common areas. It included resources such as the unemployment office, section 8 office, SBA contact info, and local assistance groups that help with food, utility costs, rent, etc.

We have one Tenant, of 46 rented units, who has not paid for the month of April. It is a very small percentage (2.17%) and I am thankful. I am not so optimistic for May. I do believe we will have more Tenants deferring rent as they realize they cannot be evicted during this pandemic. Below is the letter I wrote to give to Tenants as a response to past due rent. I utilized some of Brandon's ideas from the March 22nd Blog Post with regard to letting Tenants make up unpaid rent over the next 10 months (thanks again). Please check out the letter and feel free to use it if it fits your needs.

Tenant Name
Apartment Address
Our Town, AK 99669

This letter is being given to notify you that you are past due on your rent for the months of March and April 2020. We understand that earning income is hard right now with social distancing and non-essential work restrictions. As we are struggling with the same issues, we want to assure you that we plan to follow the State and Federal mandates by allowing Tenants to make up past due rent on a set schedule without the fear of eviction.

As of today’s date, you owe rent and fees in the amount of $825.00. Starting June 1, 2020 (unless mandates require a later date) you will be given the option to add one tenth (1/10) of amount due to your regular monthly rent for the next 10 months without incurring a late fee. All previous rent and late fee standards will apply to payments moving forward after the pandemic has passed and mandates are lifted.

We have also set up a Tenant Portal at -our website- for each of our Tenants. ACH (direct bank deposit) can be easily set up. Credit and debit cards can also be utilized for a 3% fee. Sign into the portal on a computer and/or with an app on your phone or tablet.

When asked for your username, please enter your email address.
Your password will be 6 digits, your first and last initials (lowercase) and the last 4 digits of your phone number.

The option to spread out the past due rent over the next 10 months could be more of a monthly burden than you are prepared for. Utilizing your Federal stimulus, unemployment benefits, income tax return, Permanent Fund Dividend, etc would be a good way to lessen your monthly debt responsibility.

We truly want to continue renting to the Tenants we currently have. As responsible owners, we must inform you that Landlords will have the legal right to file lawsuits to evict and make claims to recover rent due once this pandemic is over. Our goal with this letter is to utilize a mutually beneficial option before resorting to such actions.

Attached is a schedule of what will be owed on June 1, 2020. This amount will change as rent is paid or deferred. Payments can be credited at any time. Please call me at -my cell number- to discuss any questions you may have.

Sincerely,

Page 2

Month     Rent Past Due      Late Fee     Amount Paid    Monthly Total
April       $825.00               $0.00          $0.00              $825.00
May        $0.00                   $0.00          $0.00              $0.00

TOTAL AMOUNT PAST DUE: $825.00
Regular Monthly Rent: $825.00
Monthly amount to be you will need to pay for 10 months starting June 1, 2020: $907.50