Are you a landlord with rental property and wondering what you should be doing with your tenants during this covid-19 epidemic? In this video, I discuss what I’m doing for my clients with rental properties as well as some options you may consider if your tenant is unable to pay their rent due to the effect of the coronavirus.
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What is the first thing you should do as a landlord during covid-19?
The first step as a landlord is to reach out to your tenant and have a conversation. Communication is key and that’s no different during this crisis. Let your tenants know that you understand what is going on and that you are there to work with them (show empathy). From there find out if they have been affected and how that might impact them in paying their rent.
Also, make sure to let your tenants know that you also have a mortgage to pay and that you really need their help during this time. Lastly, make sure you let them know that any missed rent will have to be paid and that it’s not going to just go away.
What should you do if your tenants can’t pay their rent?
If your tenants can’t pay their rent, try and work on a solution that benefits both parties. If you are in a position to not let them pay the rent, then maybe consider that as a first option. If their payment is crucial in being able to make your own monthly mortgage payment then try and see if they are able to pay a partial amount (anything at all) and you can either use part of their security deposit as the difference in the rent or you can add it to monthly payments going forward.
You also have the option to consider mortgage forbearance with your current lender. Let them know that your tenant isn’t able to pay their monthly lease and therefore you don’t have the funds to pay your mortgage. Your lender should work with you to set up forbearance (additional videos below on that process) until your tenant is in a position to start paying rent again.
Whatever you decide, make sure that you put it in writing with your tenant through not only email but certified mail to have a paper trail of the conversation, just in case.
What is a mortgage forbearance?
A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.
If you have additional questions about mortgage relief, mortgage forbearance or forbearance mortgage, please call me directly or comment below.
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