Currently, there is a Federal Eviction Ban in place until March 31st, there’s talk that will continue until September 30th and possibly beyond that date.
If you own income property as I do, such headlines certainly don’t help us sleep well at night do they?
Some of the people I have talked to recently are thinking about dumping their portfolios.
Others are talking about allowing leases to expire and just keeping the units vacant until this blows over.
Many buyers are beginning to second guess their decision to make a purchase until this blows over.
Frankly, I think it’s a great time to buy because never before have we had times so uncertain.
Uncertainty breeds motivation in sellers.
The biggest future challenge for buyers will be in obtaining institutional financing as lenders will likely pull back from lending on income properties.
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The eviction ban only applies to a portion of the population which seems to exclude many tenants who think they may be covered under this ban.
Be proactive in open communication with your tenants in the event they fall behind.
Yes, there will be a percentage of “Professional Tenants” that will try to use this situation to their advantage, but I feel that percentage will be a minor one.
Recently, rental assistance stimulus has been passed and is available in many areas. If you have a tenant falling behind i’d get up to speed on how you can apply on behalf of your tenant to get paid.
Getting up to speed begins by calling your local state HUD office to get the ball rolling.
Please know that there is TONS of misinformation out there to intentionally worry good people in times of financial crisis. Avoid news websites, or any other non-official government information source when it comes to learning about the programs and how your tenants can qualify.
Let’s not forget that this crisis is not impacting everyone equally which means there are still lots of good quality tenants out there that are ready, willing, and able to pay your rent.
Now is a great time to access the value you are providing to your tenants. It’s more challenging to intentionally screw over a good person, so be a good person and be sure you are providing more in use value than you are taking back in cash value.
When talking to sellers, go ahead and bring the topic of eviction bans up in conversation and discuss it. A polite conversation about this topic can serve to motivate a seller even more than they already are to unload their rental property sooner rather than later.