Hi all,
I recently sent a letter to our tenants based on advice from this forum. I spent a few hours curating a list of resources for tenants to leverage in times of financial distress with a focus on the current COVID-19 crisis and wanted to share the results so others can utilize when crafting their landlord-tenant communications.
Our property is in Framingham MA and have 3 units with tenants in 3 very different situations. One seems unaffected, one has been sent home from an hourly corporate retail job, and one is a fully out of work independent contractor (this tenant is hit the hardest it seems). The letter is intended for a broad audience, aiming to convey understanding, help lay out options/explain financial concepts, and to state that although these are hard times for all we have not been given any leeway on our mortgage payments so rent is still needed and expected.
After reading THIS excellent article and great comments, I realized I was lacking some messages and will be sending a short follow up to supplement the financial info and resources.
I know there are thoughts that this may give tenants an excuse not to pay; this I view as situational. We have good tenants and the couple who are distressed have already reached out to us about potential financial issues. Additionally, although these are extraordinary circumstances, if a tenant was asking us to work with them I would require detailed review of their financial situation before making any concessions. It is the best solution I can think of to balance humanity and business during these unprecedented times.
Anyway, ramblings over, here is the letter. Feedback is welcome!
Hello everyone,
We hope everyone is doing their best to stay busy at home. If nothing else, the silver lining I see is some time to get caught up on things we normally don't have time for; workouts at home or in a park, spring cleaning, or learning something new like a skill or language. I personally plan to do my taxes (finally!) and get my dirt bike running.
The reality of this situation however is that many of us are struggling to maintain our finances for a variety of reasons. We have not been spared with Kelsey's real estate leads drying up and the inability to travel making it very hard to deliver on my job responsibilities. This is truly an unprecedented situation; we understand that. We are lucky that the government stimulus package will help us with the immediate expenses, but that is not all we can do.
On our side, we have called the office of the president, our state reps in the Federal government, our state elected officials, even our local officials to add our voice to the effort and push for some relief (soon!). We have called our mortgage servicer, our student loan provider, and credit card companies, all seeing what programs are currently offered for payment deferrals and asking for more assistance regardless of what is available. This effort will not only help to alleviate individual financial stresses, but when repeated by many our collective voice becomes so loud we can't all be ignored. Don't underestimate the power we have when we come together, this has been demonstrated throughout history in many movements: Civil Rights, Women's Suffrage, Black Lives Matter etc. etc.
As it stands today we have not recieved any relief from our mortgage company and will be expecting rent on the first as usual. We know this may not be easy so I put together a list of resources and suggestions to try to help in addition to the stimulus from the federal government. There is assistance out there but we need to be proactive to secure it; this means call agencies, apply for any programs that seem relevant, follow up by email. There are programs at local, state, and federal level that can all be leveraged during times like these.
Actions and Info
Contact Government Officials
All government contact info: https://www.usa.gov/elected-officials
- 7:15 p.m.
- The 1st and 3rd Tuesday of each month
- Memorial Building
150 Concord Street
Blumer Room
Framingham, MA 01702
Contact Banks/Card Companies
Ensure you take advantage of federally backed student loan relief: https://navient.com/covid-19
Find out what programs your bank is offering: https://www.bankrate.com/banking/coronavirus-list-of-banks-offering-help-to-customers-financial-hardship/
Call credit card companies to try to defer payment: https://www.bankrate.com/finance/credit-cards/issuer-assistance-programs-amid-coronavirus-fears/
File for Unemployment - DO THIS IMMEDIATELY IF YOU ARE ELIGIBLE FOR MAX BENEFITS
Link to file:https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/find-unemployment-benefits.aspx?location=MA&keyword=&persist=&ajax=0
State guidence on coronavirus unemployment: https://www.mass.gov/resource/information-on-unemployment-and-coronavirus-covid-19
Zero-hour or furloughed eligibility: https://www.businessinsider.com/what-is-zero-hour-schedule-unemployment-benefits-2020-3
Self-employed or independent contractors: https://www.thebalancecareers.com/can-i-collect-unemployment-if-i-m-self-employed-2064148
Seek housing assistance
Overview on housing assistance in Mass: https://www.mass.gov/guides/a-guide-to-obtaining-housing-assistance#-rental-assistance-
Retal assistance section: https://www.mass.gov/guides/a-guide-to-obtaining-housing-assistance#-rental-assistance-
Framingham Housing Authority: https://framinghamhousingauthority.org/
General
Federal stimulus package FAQ: https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html
Highlights:
- Payments coming to most Americans w/in 3 weeks of $1,200 (ensure your taxes are up to date to receive payment)
- $600 federal unemployment for both persons receiving state unemployment benefits AND for self-employed and contract workers for up to 4 months
- Federal student loans payment deferred for 6 months
- Up to $100k withdrawn from IRA or 401k w/o penalty in 2020 for coronavirus hardships
IRS page for stimulus package: https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue
General pandemic financial advice: https://fortune.com/2020/03/26/stimulus-package-how-to-unemployment-benefits-small-business-student-loans-self-employed-retirement-coronavirus-bill/
Please use this information to your advantage the best you can; the goal is to continue our lives as normal (except while staying 6ft apart of course). I am not an expert on the programs listed here nor am I a financial advisor but I am open to answering any questions you might have. As of today there is no relief for us through our bank or government related to delayed or partial rent payments (as I am writing this I have been on hold with our lender for 1.5 hours) so please pursue all avenues detailed in this email and any others you may have available to you to make rent on the 1st.
Feel free to reach out direct via cell for any questions or concerns.
Good luck, wash your hands, and stay safe :)
Anthony
