Covid-19 has created unexpected situations for all of us. We still don’t know how to react to this pandemic. Worldwide economies have suffered, and our economy is no exception.
The whole scenario is negatively influencing the real estate sector. The first quarter was a great start. However, we are not seeing much activity in the second quarter.
Covid-19 is responsible for the job loss of many people. Within a few weeks, hundreds of thousands of people have lost their jobs. Many others might lose their positions in a few weeks. Several of us had to cut our hours (and our incomes).
The situation is affecting our ability to pay our rent and bills. Many tenants live from paycheck to paycheck. You may have a reservoir of a month or two, but what happens after that? How are you going to pay your rent?
On the other hand, landlords are finding it difficult to pay their banks. Covid-19 is a new event, and we still don’t know about the future. We don’t know what other landlords are doing for themselves and their tenants. It would be best to come together and share tips to help each other. Here are a few tips for you:
As a landlord, you may not be able to help your tenants. Still, you need to communicate with them. Inform them about the given circumstances. Whenever possible, communicate directly. Tenants want to pay their rent and bills. It is just the situation that’s creating issues for all of us.
It is important to note that landlords are struggling too. Many landlords have lost their full-time jobs, they have families to take care of, and they own investment properties. Banks require payment. Insurance companies and property agents are looking for help. At the same time, landlords can’t forget about property maintenance and repairs.
As a landlord, your job is to draw a line and balance your equation. You are responsible for the well-being of your family, and you are also responsible for the people living in your home.
Is it possible to get a concession from the bank? A minor relief will help you and your tenants. Keep tenants in the loop and inform them about the circumstances. Reach out to other landlords and see what they are doing.
It takes a lot of effort & involvement to find a good tenant. Can you keep your tenants by offering rent reductions? Is it possible to waive rent worth 1-2 months? You can apply the amount to future payments.
Everyone will feel the pressure, but we all have different responsibilities. You may not have sufficient savings to help your tenants in this challenging time.
Find out how much pain can you share and for how long. Tell your tenants to do the same. Both parties need to be aware of the efforts being made. It’s a shared challenge, and we need to come out of it together.