Worried About Collecting Rent Mid-COVID-19? Consider These Tips
In the midst of the economic uncertainty prompted by the COVID-19 pandemic, many tenants have experienced reduced employment, furlough, and job loss. While the government has quickly enacted a series of stimulus bills and small business loans designed to keep Americans afloat, Las Vegas property managers must face the very real possibility that some tenants may not be able to submit rental payments in the upcoming months. Of course, you’ll want to remain compassionate, but you also need to cover your own expenses. Since many real estate investors depend on rental income to complete mortgage payments, this presents a troubling problem – how can you collect rent during COVID-19? If you don’t currently have a rent guarantee agreement, consider these tips:
Stay in communication. If your tenants are experiencing financial difficulty, you don’t want to be taken unaware when rent is missing on the first of the month. Although most states and municipalities require tenants to inform property managers regarding difficulties making rent, communicate with your tenants to promote transparency.
Stay informed. For property management companies in Las Vegas, there is specific guidance from the state of Nevada, which has ordered a temporary stay on evictions during COVID-19. Research your state and city ordinances to ensure you’re aware of the implications for your properties.
Pursue partial payments. If you have Las Vegas rental tenants experiencing short-term impacts of the pandemic, encourage them to pay as much as possible this month – a partial payment is better than none at all. Prorate the missing portion across several months after recovery to avoid a secondary impact with backed-up rental payments.
Adjust with a payment plan. If your tenants will continue to see financial impacts from the pandemic for the next few months, consider setting up a payment plan. The tenant can pay a reduced rent for a predetermined time, with the remaining amount prorated over the remainder of the lease.
Request verification. While many people are suffering financial difficulties due to COVID-19, request verification from your tenants regarding their current status. This allows you to extend compassion to those truly experiencing hardship and stresses your determination to collect rent from those who are able to continue paying.
Talk to your lender. Government orders to protect renters during COVID-19 have also prompted many lenders to negotiate payment plans or mortgage suspensions during this time. If your efforts to collect rent have put you in a serious bind regarding your mortgage payments, remain transparent, provide documentation of your losses, and inquire about accommodations.
COVID-19 has put rental property management in Las Vegas into a bit of a tailspin. However, even in light of these difficulties, collecting rent doesn’t need to be a headache. Using Home365 allows you to collect rent virtually and quickly fills any vacancies, providing you with a consistent flow of the funds you need to stay solvent. Reach out today for more information.