Working with your Tenants during COVID-19
As we slowly begin month 5 of COVID-19 it’s fair to say this time hasn’t been easy on Landlords. Let’s be honest, the common fallacy about landlords is that we are made of money but we all know that’s not the case. Even the colloquialism of the name “Landlord” is archaic. The Land Lord!
In fact, with the investors we work with in our management company we refer to our clients as owners or investors and in fact our leases say the same thing. After all, this is 2020, right?
If we’ve learned anything over the past 5 months it’s that as investors we’ve had to be flexible in how we do business, so what are some of the things you should be doing with your tenants
CONTINUE TO SHOW EMPATHY
This is challenging and stressful times for not only yourself as an investor but for your tenants as well. Take the time to put yourself in their shoes to try and understand where they are coming from. Be reasonable with them, you will get it back 10-fold with them.
WORKING WITH YOUR TENANTS
At the end of the day, filling a vacancy costs money and is expensive. Work with your tenants as best as you can. They do not want to move, and you do not want them to move. Find a win-win solution to work with them. This is a global pandemic that is affecting everyone. This is not simply your tenant went out and maxed out their credit cards. If they are willing to work with you, you should be willing to work with them.
PAYMENT PLANS & NEW AGREEMENTS OUTLINING THOSE PAYMENT PLANS
By working with your tenants, you need to put into place some sort of written amendment that outlines a payment plan and ensure that they stick to it. If things need to change then make changes to the plan. You don’t want to set your tenant up to fail. Together the two of you can weather the storm.
KNOW YOUR RIGHTS AS A LANDLORD
This is a perfect time for you to read up on your rights as a landlord. This is a time where it is imperative you know your rights as a landlord and understand what you can and cannot do. I’m a firm believer of treating others as I want to be treated and advocate to other investors and clients of this method. It’s never steered me wrong.
OTHER THINGS TO CONSIDER
COVID-19’s ultimate impact on real estate markets will largely depend on the length of the outbreak and whether there is a quick recovery. Residential properties are well positioned, largely due to aggressive due to low mortgage interest rates, and a strong balance between supply and demand. Values are holding strong in Hamilton and Niagara and we continue to see multiple offers.
Some experts say that a recession has already begun that could last through the next several quarters. In anticipation of decreased economic performance,
Regardless of whether we are in a recession or not, Real estate is about long-term growth not short-term gains. In real estate it’s about time IN the market, not timing THE market. Whatever the future may hold now is the time to set yourself up for success and plan for the path ahead.
To our Mutual Success,
Welcome Home Management