All Forum Posts by: Bob Collett

I have about 100 tenants in the rentals that I manage.  I am already getting calls from tenants wanting to know "what we are doing to help".  I am getting calls from owners asking "are tenants still able to pay the rent"

This is a scary situation for all of us... especially tenants. I am trying to be proactive here.  

Please let me know if you have specific information about any agencies, organizations, etc., that can help tenants pay their rent... even if it is just a one month stipend.  Obviously, I am not asking about section 8.  These tenants are well covered... but anyone else... especially in Ohio.  Specifically in Cleveland area. Links to financial support services are OK also.  Thanks.

@Daniel K. Beyond the loss of earnest money, if you are backing our because you changed your mind, the seller could sue for specific performance.  It is not common, but it would be appropriate considering the hardship backing out for no reason might cause.  I recommend you consult an attorney to assess your risk.

Significant amount of rents will go into DePaul. 

Contractors also exempt.

I am getting calls from tenants almost every day wanting to know what provisions we are making regarding the Corona Virus crisis.

The Corona Virus is real both in its potential impact on our health, and also its certain impact on our economy. As a rental property owner there are several concerns.

• For those of you who have section 8 government subsidized tenants, you should be OK. While tenants may have trouble paying their tenant portion of the rent, in most cases the larger portion of the rent is paid by the government housing authority.
• I am seeing projections that the United States may experience 20% unemployment. If that is true, it will likely be at the higher end in places like Cleveland. The impact of this will be staggering upon tenant’s collective ability to pay their rent. Furthermore, many of our tenants have low income service jobs. All restaurant jobs are gone, many factory people are already getting laid off, Uber drivers are done, anything related to travel is done, casinos are closed, schools are closed… on and on. 
• Some of our tenants tend to be employed as nurses, medical aids, and support jobs in medical facilities and such. These folks are more likely to have steady employment, and should retain their income through this crisis; although they are also at greater risk to get sick themselves.
• Already the calls are coming in from tenants asking what provisions we are making to get them through these difficult times. From where they sit, all property owners are wealthy. Tenants being as they are, may try to exploit the situation… but unfortunately, I think most of the hardship will be real.
• It appears as though the government is going to take several steps that impacts us:
• 1. The government says they will grant immediate unemployment compensation to those whose jobs are lost due to Corona
  2. The government will send $1000 to everyone according to the news
  3. There is a moratorium on all evictions. Tenants all know this.

My Thoughts:

Consider a rent reduction of perhaps 10% for tenants who pay by the 1st of the month. The idea is that on limited income tenants will have to make choices. We want them to pay the rent as their first choice.

Consider a rent deferment for true hardships as in “pay me later”. I have no way of knowing if this is a good idea. Tenants never seem to catch up once they fall behind. However, on another thread someone suggested allowing tenants to "borrow" from their own security deposit to pay the rent.  Good idea.

For tenants who normally pay on time, I plan to waive late fees as a gesture of good will. These accrue to me anyway and not to the owner.

I will be searching for government rent assistance programs. Let me know if you hear of any related to Corona assistance.

If your property goes vacant, or for new properties, consider section 8. It has never looked so good.

When you get your $1000… consider setting it aside as your rental property emergency fund. You will probably need it.

Beyond the above, I am open to your ideas... especially if you hear of any assistance programs related to this crisis other than what the white house is saying daily.

Be safe.

Bob Collett
Property Manager

Snakes eat mice. Will your tenant want to raise or house mice or other rodents and insects until the snake is ready to eat?

I am a licensed property manager in the Cleveland area. I always recommend local owners to self manage with a few exceptions. 

Similarly, I think out of town investors should always use professional property management unless they have a highly competent, trusted local partner.

There is no law in Cleveland requiring acceptance of Section 8 in Cleveland, although there are discussions. There is a push to disallow discrimination based upon “source of income”.  Like always, prepare formal written tenant acceptance guidelines, make sure they are legal, and use them in every case. Make sure you understand the complex nuances of fair housing law. Don’t discriminate.

Bob Collett

@Brandon Metz

You would probably do better by adding to the same BP string on this topic that you started 5 days ago

Bob

@Justin Wilson The city is out of control. The $70 is light.The city doubled the rental registration fee last year to build their property and lead inspection program. Currently, the lead swab inspection is random at the time of the mandatory inspection. Be sure to clean window sills, inside the windows and the floors under windows and also exterior doors, Each inspector has their hot buttons. One will crawl behind bushes to look for areas needing tuck point. Standards seem to be lower on the East side. I had one inspector tell me he could fail every house on the street, but he was very lenient because the tenants were nasty.

The courts will require a rental registration for an eviction.

Good luck

Bob