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Essential Things to Do If Your Tenant Can’t Pay Rent – Keyrenter Silicon Valley

The COVID-19 pandemic has put over 40 million people out of work in the US–a full quarter of the labor force. While there are no reliable estimates as to how many of these people are renters, we do know that nearly 50 million people in the US rent their homes. 

Many people out of work aren’t eligible for unemployment or, if they are, get much less than what they were getting when they were working. This lack of income has resulted in millions of tenants unable to pay rent.

This has put landlords in a tenuous position, as they often have mortgages to pay and millions of landlords are individual owners who rely on rent to pay their bills. If you’re a landlord with a tenant who can’t pay their rent, here are 5 things you can do. 

1. Work Out a Payment Plan 

One of the most important things you can do is to communicate with your tenant. Talk to them to learn about their situation if they can’t pay their rent. If possible, work out a payment plan with them. 

If you can, allow them to pay partial rent or to pay it over a few weeks rather than paying it in full at the beginning of the month. Whatever arrangement you work out with your renters, make sure it is realistic and put it in writing. Put all of the details, including dates and amounts, in an agreement that both you and your tenant agree to and sign. 

2. Speak With Your Mortgage Lender

The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes help for borrowers by waiving late fees on your mortgage payments and suspending foreclosures. If your tenants can’t pay and because of that, you can’t pay your mortgage, contact your lender to see what programs they have available for you. 

3. Contact Your Insurance Company

You don’t want to let your insurance lapse, but you can contact them to see if they have any programs for landlords experiencing non-payment of rent due to COVID layoffs. Some companies are waiving late fees, allowing policyholders to pay over time, and not canceling policies for nonpayment. 

Many of these programs aren’t automatic, so you’ll have to take the initiative to call your insurance company and ask them for assistance. 

4. See What Your State Is Doing About Property Taxes 

Most states have summer and winter property taxes. If your taxes are due and you can’t pay them, check with your city, state, or county to see if they have made any special provisions due to COVID. Some localities are allowing residents to pay their taxes in installment plans, waiving late fees, and allowing them to defer payments for a few months. 

5. Avoid Eviction 

Many states have issued emergency orders that prohibit landlords from evicting tenants, so this may not be an option anyway. Even if it is, consider working with your tenant as much as possible to keep them in the property. Eviction is costly for you as the landlord, there’s no guarantee you’ll get any of that money back if you win, and then you have an empty property until you find a new tenant. 

If Your Tenant Can’t Pay Rent, Try to Work With Them 

As a landlord, you rely on your tenant to pay rent so you can pay your bills. However, the unprecedented furloughs and layoffs of the COVID-19 pandemic are largely outside of their control. If you can work with them to keep them at all possible, it’s in your best interest to try to do that. 

Keyrenter Property Management in Silicon Valley can help you manage your renters. Contact us for more information if you have a property that you need managed.

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7 Steps Should Be Taken to Protect Tenants Rights – Keyrenter Silicon Valley

The landlord-tenant relationship should be non-adversarial and an arrangement that benefits both parties. It’s for this reason that property management companies like Keyrenter Silicon Valley work diligently to screen tenants and nurture that relationship. Not every landlord and property management firm take the same approach that Keyrenter Silicon Valley does, which is why we recommend 7 important steps that should be taken to protect tenants rights.

Keyrenter Property Management Blog Silicon Valley Tenant Rights

1. Read the Lease and Know Local Landlord-Tenant Law

Landlord-tenant law establishes the rights for both parties and is freely available online. Reading through it can give you a sense of your rights as a tenant as well as your obligation to the landlord. Read the lease as well. Leases aren’t standardized, and a landlord or property management company may assert a right that you don’t agree with or at least would be better off knowing about in advance.

2. Take Photos on Move-In Day

Ideally, you should perform a walk-through inspection alongside the landlord or representative of the property management company. Use your smartphone to take general photos of every room. In addition, take particular photos of any damage or blemishes that you could be held accountable for later. If the damage is significant, refuse to move in, or receive a written promise that the issues will be corrected in a timely manner.

3. Get Tenant Insurance

Not having renter insurance is one of the most common mistakes tenants make. The landlord has insurance as well, and while that insurance does extend to you to a point, it doesn’t cover your belongings. Without renter insurance, damage from a flood would simply be a loss. Likewise, if a storm makes an apartment unlivable, your insurance could cover immediate accommodations elsewhere.

4. Make a Payments in a Trackable Manner

A company like Keyrenter Silicon Valley provides tenants a receipt after every payment of rent or a security deposit. You should demand that of your landlord, but don’t rely on that receipt as evidence. Instead, make your payment through a trackable method, such as a check or credit card. Never pay by cash, which can make it difficult to prove payment should you ever need to.

5. Keep Records

Make a file and store all documentation in it starting with your preliminary discussions with the landlord. Include photos, receipts, copies of payment information and so forth. Also, include any notices from the landlord regardless of how inconsequential they may seem at the time.

6. Hold Your Landlord Accountable

Being a good tenant is an important part of the equation. You probably shouldn’t bother the landlord for minor items that you can easily handle yourself, but you shouldn’t avoid holding the property owner or manager accountable either. Be mindful that being lax in this area could set a precedent that you regret later on. Be fair with your landlord, but demand what you pay for.

7. Take Photos on Move-Out Day

After you’ve moved your belongings out of the residence, you should clean it thoroughly and return it to the state it was in on move-in day. Then perform a walk-through inspection, and just like on move-in day, take photos of every room. You can then use those for comparison later if the need arises.

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