I have read this thread and others and seen the consensus change from hardline to compassion as things are getting more "real". I've got a few dozen doors and a couple owned free and clear. This is what I do for a living. I have no other income to fall back on. We aren't looking at 0 rents coming in. Some of my tenants receive SSI or Disability. Those aren't going to stop. A few tenants have been saving up to buy a house. They have reserves. Almost ALL of our tenants have received their tax refund in the past month or two. Hopefully, they haven't spent it all on prepping supplies. I have some reserves saved up and can make it 3-4 months.
We must be proactive. Do we contact our tenants or let them come to us? I have had two tenants call me already and have gone back and forth but ultimately decided to contact my most reliable and trustworthy tenants that do not receive governmental assistance.
Here is the letter. I may have borrowed a sentence or two from other letters in this thread. We as landlords are often demonized due to bad actors, I tried my best not to come across as a condescending butthole. Don't be "that" landlord.
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Response to COVID-19 Pandemic
Hello NAME,
I hope this letter finds you healthy and safe. These are uncertain times and I am writing to inform you about steps that we are taking in response to the COVID-19 pandemic.
First, some good news. It appears that there will be a federal stimulus package that will put checks in the hands of all adults starting in early April and possibly a second round of checks in mid-May. At the writing of this letter, nothing has been passed, but negotiations are taking place and there should be a Congressional vote on Monday.
With so many businesses temporarily shutting their doors or reducing hours, it’s clear that loss of income will be widespread. If this has happened to you, please know I am sympathetic. Like you, I am stressed but we must be proactive and ready to adapt.
- If you are experiencing financial distress due to this emergency, reach out to us immediately. Open communication is of the utmost importance.
- If you have been laid off - even only temporarily - you can file for unemployment with the Texas Workforce Commission. You can apply for benefits online
or call. On Tuesday the state of Texas waived the “10-day investigation period” to expedite benefits to applicants. Expect a wave of applicants so be sure to get your application in ASAP. You can visit the TWC website at twc.texas.gov.
- Dial 2-1-1. This will connect you with Texas Health and Human Services. They will guide you to an agency that will best assist you. You can also visit 211texas.org.
- I have reached out to various governmental aid organizations and charities that I have worked with in the past. With their help, I am compiling a list of groups offering aid for rental assistance, food, medical, hygiene, utilities, etc. I will post this list next week.
The CDC strongly recommends all Americans practice social distancing and we will be following along.
- All rents will be collected online on Cozy or via USPS.
- Service repair calls for NON-ESSENTIAL repairs are suspended until at least April 6th. We will still make repairs for water leaks, plumbing stoppages, electrical, heating/air conditioning, and other essentials. There is a toilet paper shortage but please remember that wipes, rags, and paper towels are NOT flushable.
Things are changing quickly. Let’s be proactive, and together we will make it through these trying times.
Respectfully,
Jason M.
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In the letter, I am not promising free rent, discounted rent, or anything out of the ordinary. Will I waive late fees? Yes, but I don't mention it. Will I work out a payment plan? Absolutely. I want to guide my tenants and encourage them to be proactive. I also don't want them just disappearing because they can't pay rent. These are good people and need to know that I will work with them. You will NOT be able to replace these people immediately. We are all in the same boat.
The Texas Apartment Association has issued guidance to waive late fees. TAA has made available for members forms that allow the setup of payment plans.
Again here with the word proactive.
I have a great relationship with my lenders and spent time speaking with them yesterday. They were not all doom and gloom.
We need to free up as much capital as possible. I have started the process to pull equity out of a rented property that is free and clear. These funds will be used to buy something on the other side of this and provide an additional buffer.
I have called credit card companies to lower rates. Just in case.
I have gotten the necessary paperwork together to file for an SBA loan IF NEEDED.
I have my home in order. Plenty of food, medicine, toilet paper (HD SUPPLY!).
We can weather this storm. Mortgages and rents will have to be paid to keep our economy going. Most Americans will receive stimulus checks. Yes, there will be those that take advantage of this time, there always are, and they will be dealt with when this is over.
We are better off than most. Take a breath, be proactive, show compassion.
Jason
