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All Forum Posts by: Jerome Keizer

Jerome Keizer has started 1 posts and replied 6 times.

Post: Tenant Impacted by Government Shutdown

Jerome KeizerPosted
  • Rental Property Investor
  • Colorado Springs, CO
  • Posts 6
  • Votes 3

Thank you all for your input.  I appreciate the honest and frank comments.  There's much wisdom to be gained from other's experiences and knowledge.

Post: Tenant Impacted by Government Shutdown

Jerome KeizerPosted
  • Rental Property Investor
  • Colorado Springs, CO
  • Posts 6
  • Votes 3
Originally posted by @Shaune L Clark II:

     So this may be an oversight but the National Guard falls under Department Of Defense. I am also an Active Guardsman and Department of Defense has a budget and we are being paid. The only Military Branch affected is the Coast Guard who falls under Department of Homeland Security. 

      I know others have said this is a business, but part of running a business is keeping turnover rates down. Evicting will cost you more than late rent. You should still charge late rent fees but if the tenant is in the Coast Guard I would just explain in writing that due to the government shut down rent will still be late but no eviction will be started until ten days after an agreement is reached. It should take about ten days for pay to be submitted.

     Side note for all of the hard core business minded individuals. Coast Guard men and woman are under Contract and cannot just quit and find another job. They can be charged and jailed for this. Should they have money saved? Sure, but 10% of their wages over a year will not cover most rents. And the tide can be turned on you also saying shouldn't you have enough in reserve to cover your vacancy?   

     Just my two cents!

 Thanks for catching my mistake.  You are correct, this particular tenant is in the Coast Guard not the National Guard.

Post: Tenant Impacted by Government Shutdown

Jerome KeizerPosted
  • Rental Property Investor
  • Colorado Springs, CO
  • Posts 6
  • Votes 3
Originally posted by @Ray Johnson:

@Jerome Keizer there was a similar post that got a lot of rrsponses on both sides of the fence, some saying start the late fees, then eventually the eviction process like you would do with any other tenant, then others posted that since it's already approved that all the Fed's will get back-pay, you'll be wasting your time and money, especially if the shutdown ends in a couple of weeks.

The unknown is will this end in a few weeks or a few months, what do you do if it's a few months, Are you willing to cover the cost at that point?

If it's a great tenant personally I'd wait it out.

I saw a financial news segment discussing that all the big banks, Wells Fargo, Bank of America, USAA, etc... are all holding off on collecting mortgage payments, credit card payments, personal loans, etc... for up to 3 months and not charging any late fees or reporting any negative hits to the credit bureaus if you're a Fed and being affected by the shutdown.

While we're not big banks, they have the same mindset that I do, it's cheaper, less time consuming, and in the interest of the long-term relationship to work with the customer. If it were a job where the tenant wasn't guaranteed the back pay that would be a different story.

 Thanks for your input and perspective.  Do you remember the name of the previous post on this subject?  I've been looking for former posts, but everything has been related to section 8 late payments.

Post: Tenant Impacted by Government Shutdown

Jerome KeizerPosted
  • Rental Property Investor
  • Colorado Springs, CO
  • Posts 6
  • Votes 3
Originally posted by @Account Closed:

Hello Jerome, 

Tell us, how many units do you have in total?, where in Hawaii is this a small/big city.  The reality is, the rent is one of if not his most important bills he has to pay.  Its up to you to decide, he can easily put off his other bills, and tell them what he's telling you.  Does the tenant pay for electricity water etc... More info please, thanks 

 This is one of three units on the property.  The town is a suburb of Honolulu, so small town beach town feel but big city options (for Hawaii standards).  Rent includes utilities.

Post: Tenant Impacted by Government Shutdown

Jerome KeizerPosted
  • Rental Property Investor
  • Colorado Springs, CO
  • Posts 6
  • Votes 3

Context:

I have a single tenant in Hawaii who is in the National Guard and has been impacted by the government shutdown.  The tenant has been a great tenant, and has paid in full and on time since moving into the unit.  The tenant is active duty, so is currently working but not receiving a paycheck, however, back pay is expected once the shutdown is over.  The tenant has contacted me to discuss how to handle the next rent payment if the shutdown is not resolved by February 1st.  I have funds available to cover the mortgage and expenses for the foreseeable future.

Objective:

With all that said, I want to work with the tenant to come up with an amicable solution with the obviously difficult situation they are experiencing.  I want to make sure I protect myself so that I get any lost rent once the back pay is distributed. 

Question:

Does anyone have some advice on how to handle this unique situation respectfully and professionally?

Thanks in advance!

Post: Tenant Applicants say the dumbest things

Jerome KeizerPosted
  • Rental Property Investor
  • Colorado Springs, CO
  • Posts 6
  • Votes 3

Three unit property in Hawaii in very upscale part of the island - 3rd unit is newly constructed 400SF studio with high end finishes renting for $1,795...

"Do you accept Section 8?"

"I know it says no animals, and we don't have any, but what if my girlfriend got a dog 6 months from now?"

"Can I rent-to-own this unit?"

"I really like your unit, but I'm newly single, only have my daughter on weekends, and part of a start-up company - can we negotiate on the rent?"

... and these were all questions on my very first attempt to rent the unit after construction was complete.  

All were offered the opportunity to submit an application.